Finance Bill

Ben Everitt Excerpts

Report stage & Report stage: House of Commons & Report: 1st sitting & Report: 1st sitting: House of Commons
Wednesday 1st July 2020 Commons Chamber

[Mary Kelly Foy (City of Durham) (Lab)]

We are facing an employment crisis unlike anything we have seen in a decade. The impact of coronavirus will undoubtedly weaken much of our infrastructure, leaving many workers unemployed, and businesses on the brink of collapse. Unfortunately, when lockdown ends, the Government seem intent on a return to normality and business as usual, stuck in the past when they should be learning lessons and looking to the future. The Government’s slow reaction cost us as we entered this pandemic, and they cannot repeat that mistake as we emerge from lockdown.

In contrast, my hon. Friend the Member for Oxford East (Anneliese Dodds) has proposed a back-to-work Budget that places jobs at the heart of the economic recovery. That does not mean a sticking plaster solution, however, or jobs with little or no protection for workers. The damage to our economy caused by this awful virus has been severe, but the economic structuring of society was already broken—skewed in favour of the wealthy rather than workers.

Over the last decade of Tory austerity, the Government have launched attack after attack on the rights and protections afforded to working people. Through the promotion of zero-hours contracts, ambiguity in employment status, low pay and lack of protection in the workplace, the Government have encouraged irresponsible employers and abandoned the country’s workers. Before lockdown, 9 million people living below the poverty line—3 million of them children—were in households with at least one person in work. The Government boast of record levels of employment, but they should be ashamed of the amount of in-work poverty. This economic model needs to end.

If this pandemic has shown us anything, it is that the people on whom society relies the most are those least rewarded in pay and respect. Whether it is the poorly paid nurse, the carer on a zero-hours contract or the retail and hospitality staff working shifts so long that they would not be out of place in Victorian society, the people of Britain deserve better. This pandemic has been devastating, but it provides us with an opportunity to shape the economy and society in a way that prioritises the environment and protects workers. That means better pay, shorter and more consistent working hours and job security. Workers need to be able to look ahead into the week knowing that they have work, that their wages will provide a decent standard of living and that their working hours will leave them the time and energy to live their life. The better the conditions and protection for workers, the better their quality of life and the greater their health, wellbeing and sense of worth—it really is that simple.

The pandemic has also exposed the lack of protections for staff in the workplace and how fragile health and safety standards are. The Government must begin to see employment law as a red line, rather than being advisory, and they must properly fund the Health and Safety Executive, so that safety in the workplace is properly enforced. When the Government finally begin to plan for our post-coronavirus society, they must accept that the status quo has not worked, and any attempt to return to business as usual will fail the public. The 33 million workers of Britain deserve more. When society needed them most during this pandemic, they delivered. It is time for the Government to do the same for them.

[Ben Everitt (Milton Keynes North) (Con)]

I draw the House’s attention to my entry in the Register of Members’ Financial Interests.

In this part of our debate, we are talking about jobs. Today the Government launched the flexible furlough scheme, and flexibility needs to be the watchword of our response and how we consider the economy. We are emerging, blinking in the sunlight from lockdown, and our businesses are blinking too, in the light of the new economic reality. Things will never be the same. Things have changed irrevocably, and we have learned a lot about our society, volunteering and our communities. We have learned a lot too about how business will need to change and adapt.

The drivers of that change—the adapters—are the consultants and contractors in our professional services sector, which provides such immense value to our economy and also revenue to the Exchequer. These are the people who bring the sparkle of innovation. They are the lubricant of the cogs of capitalism. They are the critical friend to beleaguered boards and exhausted executives. These are the people who are caught up in the IR35 reforms. I welcome the decision of my right hon. Friend the Financial Secretary to the Treasury to postpone the introduction of those reforms until next spring. I am sure that, in the short term, that decision will have reassured many who face huge challenges in retooling our economy, reorganising the businesses that provide those jobs and repositioning and repurposing our private sector.

[Christine Jardine (Edinburgh West) (LD)]

Does the hon. Member perhaps wonder, as I do, if postponing does not simply extend the period of stress for people who are waiting to find out? I was curious about that.

[Ben Everitt]

The hon. Member has perhaps read my speech. That postponement is quite problematic, and in fact I am sure I am far from alone on the Benches either side of this Chamber when I say that I wish it were not postponed, but were cancelled.

However, we can learn lessons. I welcome the commitment to review the implementation of IR35 in the public sector because, frankly, this is about the implementation of such schemes. The hon. Member for Ealing Central and Acton (Dr Huq) noted some similarities between the loan charge and IR35. I think the biggest similarity is the fact that both have been implemented in a way that one could describe as a sledgehammer to crack a nut. These nuts are important to our economy, and I hope that we can learn some lessons and implement such schemes in a way that captures the essence of what we want to do, which is obviously to crack down on elaborate and excessive tax avoidance and, indeed, in the words of my right hon. Friend the Member for Gainsborough (Sir Edward Leigh), simplify our tax system and make it more efficient and more productive, but we must have an equitable and fair system—a system that empowers growth, but ensures that we benefit from a buoyant economy.

The ability of a flexible workforce to assist our businesses, large and small, across the economy in this time of particular economic turmoil will be crucial to our recovery, and it is one that we must not curtail. We must not risk squandering the competitive advantage that our British spirit—our consultancy sector, our contractors, our professional services—gives to the UK economy as we look to bounce back or, in the words of a Prime Minister, bounce back better, bounce back faster and bounce back greener. Many contractors and consultants will be watching this debate today and looking to the Treasury Bench for some hope, and some sign that they are not forgotten and that this Government recognise them as part of the solution to our economic woes, not part of the problem we face.

[Charlotte Nichols (Warrington North) (Lab)]

Our economy stands on the brink of catastrophe. The coronavirus job retention scheme has been, there is no doubt, an unprecedented package of support, which I welcomed as a vital lifeline for employers and sectors across our economy. We have seen already, however, how the failure to attach conditionality to the scheme meant that too many employers have used it as a subsidy towards the notice pay of staff they were laying off, rather than to preserve jobs. We have seen huge job losses announced in sectors across the economy, and many more businesses are vulnerable, particularly in catering and hospitality, aviation, manufacturing and the creative sectors.

The approach from the Government has been one size fits all, but more bespoke support must be forthcoming to ensure the viability of businesses and sectors that have been hardest hit by this crisis and by social distancing measures that may be in place for some considerable time. I ask the Government also to look at early warning systems, so that employers can access targeted support before sliding into administration, with the Government taking an equity stake, where necessary, to protect the taxpayer interest.

I turned 18 as the 2008 economic crash started to bite. I know what it is like to be totally despondent, looking at opportunities that generations before us took for granted, feeling that they will never be in our reach, yet the anxiety I felt has nothing on what young people in Warrington North and across the country will be feeling right now, given the scale of our current crisis. They need hope and cause for optimism.

Further to the measures outlined in the Bill, I urge the Government to develop a scheme based on the future jobs fund to support young unemployed people into work and give them the opportunity to establish their careers in their chosen sectors. Decades of research has shown the scarring effect of youth unemployment, which can be a lifetime penalty for young people, in terms of subsequent lower pay, higher unemployment and reduced life chances. If we do not get this right, and get it right now, the impacts will be felt for decades to come.

Covid-19: Economic Package

Ben Everitt Excerpts

Tuesday 12th May 2020 Commons Chamber

[Rishi Sunak]

I thank the hon. Lady for her warm wishes as well. To clarify, there will be no reduction in the level of support for those on the scheme. That is the commitment that I made earlier, so I am not entirely sure whether I understood her question right. It is crystal clear that those on the scheme have the reassurance that the level of support they will receive will not be changed. Those wages and support will now be shared by the Government and employers, but the levels and percentages of support will not change. I committed to bringing forward further details by the end of this month, while we work through some of the technical details of implementing part-time furloughing. As I said at the outset, this is now an extension for four months to the end of October, which will provide eight months of support in total to all regions and all sectors of the United Kingdom. I think it provides a good, generous runway for businesses and firms to plan against, so that they can start getting back to work when the time is right, as per the Prime Minister’s plan that was outlined on Sunday and Monday.

[Ben Everitt (Milton Keynes North) (Con) [V]]

We know that international comparisons should be made carefully, but I note that polling released yesterday showed that the UK is considered the best in the world for supporting businesses and jobs during the crisis, so what steps is the Chancellor taking to ensure that this success is continued for companies in Milton Keynes and elsewhere as we gradually come out of the lockdown?

[Rishi Sunak]

I thank my hon. Friend for mentioning that. He is indeed right. I was pleased to see polling that showed that people in this country felt that businesses were well supported, as compared with almost any other developed country. Indeed, the full scale of the economic intervention that we have put in place as a percentage of GDP stands as one of the most comprehensive anywhere in the world. I am very happy to continue listening to my hon. Friend to see what more we should be doing to support his businesses in Milton Keynes as they look forward to a future where they can start to reopen, start to get their employees back to work and start to rebuild our economy as we emerge from this crisis.

Economy and Jobs

Ben Everitt Excerpts

Monday 20th January 2020 Commons Chamber

[Mr Fysh]

My hon. Friend makes a very good point and he is absolutely right. Increasing that to 33% really is a big deal for smaller businesses. We need to reform the whole system and try to use that to devolve the ability to invest locally raised taxes in our local economies and have them compete with each other. That can create the dynamism in our economy to really grow and create jobs into the future.

We need to invest in roads in the south-west. We need to follow through on the dualling of the A303. We should be starting that this year on the Sparkford to Ilchester section, but we need to make sure that the Stonehenge tunnel is funded, because the value for money of the whole project depends on that.

[Ben Everitt (Milton Keynes North) (Con)]

Does my hon. Friend agree that, while the Government are still seemingly committed to the £106 billion total cost of HS2, consideration might be given to reallocating some, if not all, of that funding to the Stonehenge tunnel and other local infrastructure improvements that would benefit my constituency and many others?

[Mr Fysh]

My hon. Friend makes a good point. The Government have some interesting judgments to make. I would not want to gainsay, but there is a strong rationale for investing throughout our country that needs to be put before Ministers. I hope he will do the same for his area.

It is important that we get proper skills development into our regional areas, and I want to mention our further education colleges in Yeovil. Yeovil College is a particularly good example of a top-performing college that is able to improve the life chances of people in regional areas. Often, when there is not a university in an area, further education colleges are the only opportunity that people have to change their skill level and skill type, so that they can change jobs and take advantage of job creation.

The helicopter industry is very important to the Yeovil sub-regional area. Leonardo, based in my constituency, is a military helicopter manufacturer and the only end-to-end aerospace manufacturer left in the UK. It supports more than 10,000 jobs in the supply chain, which is incredibly important. The Government have said that they want to reform defence procurement. When we are looking at value for money, we must consider the holistic impact on a community of having such a big employer with such big projects. It makes a huge difference. We cannot just look at the headline costs; we have to look at all the consequential costs and the value throughout the community.