Business and the Economy

Edward Morello Excerpts

Wednesday 21st May 2025 Commons Chamber

[Mr Mohindra]

Well, I have been listening; I spend a lot of time in the Chamber. Yes, there is an element of Punch and Judy, but the reality is that there are 650 of us here who want great legislation to support our communities and make sure that people can get on with their daily lives without the burden of having to think about legislation. They want us to get on with it on their behalf.

On tax rises, we have seen the leak of the Deputy Prime Minister’s letter to the Chancellor. I remain concerned that any ambition to increase taxes is another death by a thousand cuts for our small businesses. We need certainty and support from this Government, saying to people, “Go and be ambitious.” If people are risk-averse, there will be a structural problem for us on our high streets and for our small businesses. That means that we will not create the world’s next unicorn because those ambitious people will already have left our country to generate their income in a better financial climate, typically in the middle east or other parts of Europe.

[Edward Morello (West Dorset) (LD)]

I was touched by the hon. Gentleman’s story of his father’s role in contributing to the economy. I hope that he will be present in the immigration debate later this afternoon to make the same points about the vital work of immigrants contributing to wealth creation in the UK.

The hon. Gentleman mentions NICs and the other headwinds facing small businesses. One small business in West Dorset has seen its business rates go from £8,000 to £27,000. If we want to help small businesses grow, surely we have to stop taxing them so much.

[Mr Mohindra]

I have always thought that business rates were totally outdated. They generate a significant amount of money for the Treasury, so it is resistant to reform without knowing for certain how it will fill that significant black hole.

We have not spoken about hospices and the effects of NICs increases on the charity sector. Others have spoken about the winter fuel allowance. All these things affect our most vulnerable individuals, and the community groups and charities that fill a massive void that the state or the private individual do not. My worry, which is increasing, is that we are doing things that will have unintended but significant consequences.

We chose this subject for debate to ensure that the Government heard loud and clear from across the House that where they do the right thing, we will support them, and where they need to adjust their direction of travel—I will not say “U-turn”—we will support them. It benefits no one, and provides no benefit to our communities, if we just chuck political grenades.

I will end my remarks on the loss of business confidence. Small businesses are closing, investors are leaving, inflation is rising and confidence is collapsing. I know that there is a direct lack of business experience on the Treasury Bench, but that is neither here nor there. I know that there are various economists, think-tankers and so on in the Minister’s party, but I urge him to listen to those who run businesses of whatever shape or size, because that life experience brings them value in this place. My hon. Friend the Member for Broadland and Fakenham (Jerome Mayhew) created a business that employs 1,000 people. That is real life experience; he knows how the Government’s decisions would have influenced the projections and ambitions of his business. I know from my continuing conversations with businesses that they are looking to shrink and be secure rather than expand and be ambitious. That is not what the UK is about; we are outward-looking and globally ambitious. I wish the Government success in getting to that point.