Employment and Trade Union Rights (Dismissal and Re-engagement) Bill

Debate between Chris Stephens and Richard Fuller

Friday 22nd October 2021 Commons Chamber

[Richard Fuller (North East Bedfordshire) (Con)]

It is a pleasure to follow the hon. Member for Paisley and Renfrewshire North (Gavin Newlands), who, through his commitment to his own Bill and through the amity he has shown to his colleague the hon. Member for Brent North (Barry Gardiner), who is bringing forward similar legislation today, demonstrates that he has a keen commitment to dealing with this problem. Although, as I will outline, I have a different approach to how we should tackle it, I believe the principle is shared across the House.

It is a shame that the hon. Member for Brent North chose the time I stood up to walk out of the Chamber—I shall not take it personally, whether or not it is personal. I wanted to commend him for the way in which he presented his argument and case today. He has undoubtedly done a tremendous amount of research and gained tremendous understanding about this issue, and in taking so many interventions from Members on both sides of the House he demonstrated that he was prepared to debate, understand and move forward. I will return towards the end of my contribution to how we might continue the progress of this amity between the hon. Members for Paisley and Renfrewshire North and for Brent North and my hon. Friend the Member for Newbury (Laura Farris), who outlined a substantial alternative approach and a better one to achieve the goals that are shared across the House.

It was a shame, and perhaps a disappointment to the hon. Member for Brent North, that what was the oratory of Cicero from him descended into the mosh pit of Westminster debate with the contribution from the shadow spokesperson, the hon. Member for Bradford East (Imran Hussain). It was a metaphorical head in the hands moment for the hon. Member for Brent North, but he did endear himself to many on the Government side of the House with his contribution. He was at one moment in danger of talking out his own Bill. Ironically, the fact that, unusually, there was a statement today gave him some latitude to come to a close.

I wish to pick up on two points the hon. Gentleman made. First, he said that his Bill would make the UK the best place to work, but the UK is already the best place to work, in large part due to measures that this Government have undertaken, particularly in their commitment to the living wage and in continuing the progress on reducing the gender pay gap by ensuring that there is enhanced reporting by boards about the treatment of employees. This Government are continuing to make the UK the best place to work, not least—I say this as much of this debate relates to actions that took place during the covid period—with the exceptional response of the Chancellor to support businesses through the furlough programme and other UK Treasury measures. So I gently make that point to the hon. Gentleman.

[Chris Stephens]

The hon. Gentleman and I share a passion for American football, but may I ask him why, if he believes the UK is the best place to work, the Government have not yet responded, formally, with legislation, to the Taylor report of four years ago on unscrupulous working practices in the UK?

[Richard Fuller]

That is an interesting point. Unfortunately, I am not a member of the Government. The hon. Gentleman probably wants to direct that question to those on the Front Bench. I am familiar with Matthew Taylor, who, apparently, is back in the news this week with a different hat on telling the Government what they should or should not do, and I am not sure whether I agree with him in that particular case.

The hon. Member for Brent North also said that the Bill was about better regulation, and that perhaps gets to the nub of the difference of approach between those on the Labour Benches and those on the Government side of the House. Our approach is not about making better regulation, but about making better business. We understand that in doing that, Government and others can take a variety of tactics and approaches to achieve a shared objective.

Let me point Members to my entry in the Register of Members’ Financial Interests, because I want to refer to a couple of pertinent examples from last year. This debate largely relates to an exceptional time and an exceptional practice, both of which remain exceptionally rare. For those who have quoted many statistics, let me just add a comment from the Chartered Institute of Personnel and Development. It said that the

“use of ‘fire and rehire’ remains low”

despite the “upheaval of Covid.” It was covid that created those exceptional issues for people. The part that was exceptional and that differentiated companies’ response from the one during a different time of distress, the 2007-08 financial crisis, was that the Government themselves had stopped commerce. This was not just a matter of overcoming financial considerations—the shortage of access to capital to support a business or a downturn in demand in the economy—but a direct intervention of the state, both in this country and in Europe and across the world, which said, “No, you cannot do business”. When we frame legislation, it is important to understand that, if the context for that legislation is primarily driven by such an exceptional event, we are wise to be very cautious indeed about what we put on the statute book for fear that it will have uses in less exceptional times that perhaps we cannot foresee today. That is one of the primary reasons why I will not be supporting the Bill in a vote later today.

Let me reflect on what was on the minds of companies at that time. My hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) talked a little bit about his broad experience, but I want to talk specifically about what was going on this time last year. Before coming to Parliament, my career was substantially in venture businesses. The businesses to which I still have relations would be covered by the provisions of this Bill. They are largely in the categories of businesses larger than microbusinesses, but they are all businesses for which the availability of cash and the support of capital, both shareholder capital and of loans, are always treated very seriously and quite tightly to achieve growth.

Growth is those companies’ main objective. They do not have a cushion of resources to fall back on, so when the exceptional events of covid and the closedown of the economy occurred, the amount of pressure on their boards and senior executives was beyond exceptional. There was the responsibility to understand where on earth money was going to come from to support ongoing operations. There was their duty of responsibility to make sure that they were not trading fraudulently because of insolvency concerns about the business. There was a desperate search for loans, and an approach to shareholders to gain additional liquidity through additional investment. Many senior executives voluntarily cut—and in at least one instance eliminated—their pay during that period. There was a tremendous focus on employees, and primarily on employee safety.

Let us all remember that the experience of covid was not a shared common experience for everyone in the country. There are those of us in the country, such as Members of Parliament, who were facilitated to continue to take 100% of our pay, to have 100% certainty of employment, and to have the opportunity to work from the safety of our own home, but there were many others who were facing: cuts in their pay, a 100% certainty of the loss of their business and the requirement that, if they wanted to stay in employment, they had to go to work. For any Member to say that senior executives and company boards were not intently focused on ensuring the safety and security of their employees does a gross disservice to what companies were going through.

Boards and senior executives were substantially challenged to make changes. In the process of looking at all the alternatives that could maintain the survival of the company, they would have due regard to the law at the time. As my hon. Friend the Member for Newbury stated, one of the issues with the existing legislation is that companies will defer putting all their cards on the table, including the option of fire and rehire if that is one of their considerations. Perhaps we can make some change in that regard that would be helpful for companies and employees.

Companies would also have due regard to maintaining the solvency of their business. To do that, consideration has to be given to what a company will do to manage its costs in the year ahead. If it is looking to access capital, loans or additional equity, questions will be asked by the banks, creditors and shareholders about what it is doing to manage their future costs. It would be a deterrent to gaining the investment and support needed to maintain the business if it was unable to outline what angles and opportunities it was investigating to reduce costs.

For many of the executives in business with which I have worked, consideration of employees is front and centre in their mind. It is exceptionally difficult for them to balance in their own heads the idea that, “I know I need this additional capital,” with, “I want to make sure I can protect the employees and the skills that I have within my workforce.” In my experience, most people involved in business who are entrusted with authority would undertake measures covered by the Bill only as a last resort, if ever.

Loan Charge 2019: Sir Amyas Morse Review

Debate between Chris Stephens and Richard Fuller

Thursday 19th March 2020 Commons Chamber

[Chris Stephens]

My hon. Friend is right; that is very sound advice. Everyone who has spoken so far today has been a credit not just to the House, but to their constituents, because there are far too many people—such as my constituents, his constituents and others—who are in despair because of this issue.

[Richard Fuller]

On the importance of Members of Parliament speaking up, is the hon. Member concerned, as I am, that effectively, HMRC is smearing constituents as tax dodgers and adding to their mental anguish, rather than trying to assist them through this process?

[Chris Stephens]

I am not only very concerned, but angry about some of these actions and what I have heard today about what HMRC is up to. I will speak more about that.

When constituents such as Fraser Kennedy and Jason Millington come to us to discuss this issue, three immediate things leap out at us. This has come up in the debate, including in a fantastic example from my hon. Friend the Member for Ayr, Carrick and Cumnock (Allan Dorans). In this Parliament, we really need to deal with the relationship between an employer and a worker and their status in the workplace, because it really is time to end the bogus self-employment that we have heard about in this debate and in other examples. This needs to be addressed because what this issue has proven is that the wrong people are being targeted.

The hon. Member for Beckenham (Bob Stewart) said that when people first come across this issue, it looks like some sort of tax avoidance scheme, and I think it is perfectly natural for someone to think that when it is first explained to them. In the back of my head, when I first heard about it, I thought, “Well, maybe I will approach HMRC as an MP and try to get the same sweetheart deal that Google got only a couple of years ago,” when it paid the equivalent of 4% corporation tax. It seems that there is a disproportionate way that the people who have been caught up in the loan charge are being dealt with compared with other people who can get a sweetheart deal. That is how I thought I could try to deal with it, because if the answer is, “Yes, it is tax avoidance”, then the people HMRC should really be going after are those who contrived and promoted such schemes, because they are the ones who are directly responsible. They should be pursued and punished, and there should not be the blunt instrument that is being used for those caught up in the loan charge.

The third conclusion is, as the hon. Member for North East Bedfordshire (Richard Fuller) said, that there have been disproportionate actions from HMRC towards the individuals who have been caught up in this and how they feel. My constituent, Fraser Kennedy, sums it up well. His employer, Winchester, assured him and HMRC that it had paid all the tax and moneys, but he is still getting chased by HMRC. He feels bullied and harassed, and is suffering from stress and anxiety because of how it has handled the matter. He believed that it was settled a year ago, but he is still getting correspondence.