Backing Business to Create Economic Growth

Debate between Caroline Nokes and Gregory Stafford

Monday 18th May 2026 Commons Chamber

[Gregory Stafford (Farnham and Bordon) (Con)]

I agree with my right hon. Friends the Members for New Forest West (Sir Desmond Swayne) and for Tonbridge (Tom Tugendhat) that there seems to be a complete lack of understanding from those on the Government Benches of the absolute disaster they are presiding over when it comes to the economy and, most importantly, growth. The evidence is hard to ignore. The hon. Member for Exeter (Steve Race) talked about a battle of ideas—

[Madam Deputy Speaker (Caroline Nokes)]

Order. I remind Members that if they have intervened in a debate, they might like to have the courtesy to wait a while before departing the Chamber.

[Gregory Stafford]

Thank you, Madam Deputy Speaker.

The hon. Member for Exeter talked about a battle of ideas, but those on the Government Benches seem to be totally devoid of any ideas that will actually get this country moving again. The ITEM Club forecasts around 160,000 job losses this year alone, with manufacturing, retail and construction expected to be hit the hardest. Unemployment has risen month after month and now stands at 5.2%. His Majesty’s Revenue and Customs payroll data shows 110,000 fewer people in employment than when Labour took office.

In my constituency of Farnham and Bordon, in Haslemere, Liphook and the surrounding villages, there has been a 28% increase in the number of young people claiming unemployment-related benefits in a single year. This is the reality behind the rhetoric that comes from the Government: young people unable to get a foothold in work, businesses pausing recruitment, families feeling the squeeze in their bills, and high streets losing momentum.

The reason is not difficult to identify, and businesses across the country are telling us the same thing: Labour has increased the cost of employment, raised taxes and layered on regulation that is undermining confidence. The Employment Rights Act alone introduced more than 330 pages of additional obligations on employers. The Government’s own assessment acknowledged a cost of around £1 billion a year. Both the Federation of Small Businesses and the Institute of Directors warned that the legislation would reduce hiring and investment, which is exactly what we are seeing. What is the Government’s response? A regulating for growth Bill. It is like asking a vegetarian how they would like their steak cooked. The reality is that this is not the way to get growth.

At a recent hospitality roundtable in my constituency, one publican told me that there is now “no incentive to hire someone under 25”. That should concern every single Member of this House, but Labour Members simply parrot the Government’s talking points. They are totally detached from what is going on in the real world. The unemployment rate is now close to one in six among 16 to 24-year-olds, and I cannot believe that Labour Members are not being told this by their constituents. For many young people, their first job is the foundation for everything that follows—skills, confidence, independence and ambition—but too many are now finding the door closed.

Employment Rights Bill

Debate between Caroline Nokes and Gregory Stafford

Report stage
Wednesday 12th March 2025 Commons Chamber

[Madam Deputy Speaker (Caroline Nokes)]

I thank the hon. Member, but he will be aware that that was not a point of order. As the hon. Member for Blyth and Ashington (Ian Lavery) has spoken in the debate, it is perfectly in order to refer to the comments that he made.

[Gregory Stafford]

I return to what industry leaders are saying. They have shared their fear about

“union influence slowing down decision making and hindering flexibility”,

making it harder for companies to remain competitive in global markets. The Chartered Institute of Personnel and Development’s survey found that 79% of organisations expect measures in the Employment Rights Bill to increase employment costs, placing further strain on companies that are having to grapple with increases to national insurance contributions and the rising national minimum wage. It is also likely that the measures will lead to

“more strikes, more disruptions, and ultimately less productivity.”