Gagan Mohindra
Main Page: Gagan Mohindra (Conservative - South West Hertfordshire)Department Debates - View all Gagan Mohindra's debates with the Department for Business and Trade
(1 month ago)
Commons ChamberI am not sure that there is “nowhere” in the country where that is more important than the Isle of Wight—every single constituency in the land faces challenges around getting young people into work. The former leader of the Liberal Democrats, the hon. Member for Westmorland and Lonsdale (Tim Farron), raised a completely different set of issues from those raised by the hon. Gentleman, but of course we have to reform welfare. I do not think a single Member of the House does not believe that we have to reform welfare. We have to ensure welfare works for people and enables people to get into jobs.
There is one phrase that the hon. Member for Grantham and Bourne used that I completely agree with, although I would just change one word. He said that as a Conservative, he believed that work is the route out of poverty and into prosperity, and as a socialist and a Labour party politician, I agree that work is the route out of poverty, to self-fulfilment, to better mental health and to increased social cohesion across the whole country, so of course it is an absolute priority for any Labour Government to want to get as many young people into profitable work as possible.
Let me deal with the three main issues that have been raised in the debate: first, young people and their summer jobs; secondly, support for businesses; and thirdly, tourism. I see the shadow Secretary of State for Culture, Media and Sport, hon. Member for Droitwich and Evesham (Nigel Huddleston), is in his place, so he may want to raise some of the issues around tourism later. I think he has been out in the sun a bit too much—I am a bit worried about him. Skin cancer is a major problem in the country—[Interruption.]
Why is the Minister talking about people’s skin?
I refer the House to my declaration in the Register of Members’ Financial Interests.
Every summer, thousands of students, school leavers and young people across our country begin searching for seasonal work. For many, these jobs are much more than a payslip; they are the first step into employment and a chance to earn their own money, gain independence, develop confidence and learn the responsibilities that come with work. I know just how valuable such opportunities can be. Today’s debate is important not simply because it is about businesses, but because it is about protecting opportunity. It is about ensuring that the next generation has the chance to develop the skills, confidence and experience that will shape the rest of their lives.
Seasonal jobs matter because they support people at every stage of life. From the responsibility and skills I learned in my childhood paper round to the office temping I did throughout university, my seasonal jobs helped shape my career. Those first experiences of employment have been just as valuable to my career as the more permanent roles that followed. For students across the country, such jobs help them earn money towards university or everyday living costs. They give young people confidence and experience before entering the full-time workforce, and they enable businesses to meet the increased demand that often comes with the busy summer months.
However, those opportunities exist only if businesses have the confidence to recruit, and that confidence is being steadily eroded by the policies of this Labour Government. As a result, such opportunities are becoming harder and harder to find and youth unemployment is rising. Businesses across the country are facing rising costs from every direction. Employer national insurance contributions have increased, wage costs have risen significantly, employment regulations have become more complex and burdensome, and energy bills and overheads have continued to soar. Any one of those pressures would be challenging, but together they are forcing businesses to make difficult decisions.
The businesses I speak to are not telling me they no longer need staff; they are telling me they simply cannot afford to employ as many people as they once could, and that has consequences far beyond their balance sheets. Across South West Hertfordshire, I have heard that message repeatedly. In Sarratt, I visited Micklefield Hall, a wonderful local events venue. It explained that the biggest barrier to employing young people today is cost. It used to happily recruit students straight from local schools, investing time in training those people with little or no experience. It even offered apprenticeships. Today, that has become much harder. As wage costs have increased, more experienced workers are being prioritised for roles that would previously have been filled by young seasonal workers, simply to keep costs down. Apprenticeships are no longer financially viable and have stopped. The manager, Tom, left me with a simple, powerful question: how can the Government expect businesses such as that to continue supporting their local community when they are spending most of their time simply trying to survive?
I also spoke to the manager at Waitrose in Rickmansworth. Weekend shifts there have traditionally been filled by students, giving hundreds of young people meaningful employment and helping them to build confidence, responsibility and valuable workplace skills. The manager explained that the increases in national insurance contributions and wage costs have added millions of pounds to the company’s costs, forcing it to make significant efficiency savings across the business. For now, Waitrose has, as a large employer, managed to absorb those costs, but it raises an important question: if even businesses of that size are having to reduce costs elsewhere, what does that mean for smaller employers who simply do not have the same financial resilience? How long can the reduced amount of summer jobs that remain continue to exist?
One of the biggest tourist attractions in my constituency is the Harry Potter studio tour in Leavesden, which is a major employer of young people. The business was hit with huge costs after the last-minute change to VAT resulted in refunds for a significant amount of pre-sale tickets. When such businesses are forced to absorb unexpected costs caused by the uncertainty that this Government create for them, it is our young, inexperienced people whose opportunities are at risk.
At the Grove Hotel in my constituency, I was told that, disappointingly, due to the cost of hiring staff since this Government have been in office, the business has had to tighten its approach to seasonal work and has taken on longer fixed contracts over more flexible opportunities that suit students. That is again taking away even more vital first employment opportunities for young people.
Another hospitality business, Anna’s Kitchen, caters events across my area and employs many young people around term time. In fact, one of my own members of staff worked there before joining my office. At just 18 years old, the skills, confidence and responsibility he developed through that job played an important role in helping him to secure employment here in Parliament. These stories are exactly why these opportunities matter. They are not simply summer jobs; they are stepping stones to successful careers. Behind every one of these examples lies the same concern. Businesses still want to employ young people—they recognise the value that young people bring, and the value that the businesses offer them—yet increasing costs are making those opportunities more difficult to provide. The consequences stretch far beyond individual businesses. When seasonal jobs disappear, young people lose valuable first experiences of work; businesses reduce their opening hours or scale back services; hospitality, tourism and retail suffer; local economies lose spending power; and, ultimately, economic growth slows.
Growth happens when businesses have the confidence to invest, expand and create jobs. That is why this Government must work with businesses, not against them, and why the Conservatives would reduce the cost of employing seasonal workers by repealing large parts of the Employment Rights Act. We would abolish business rates for thousands of retail, hospitality and leisure businesses, cut the red tape that stops employers recruiting young people, and introduce our cheap power plan, which would cut electricity bills by 20% for businesses.
I will go back to what I said at the start: this debate is ultimately about opportunity. Our young people should not be priced out of those vital first steps into employment by the harmful policies that this Labour Government used to fund the welfare bill. Every seasonal job created is another young person gaining confidence, building skills and taking that first important step into the world of work. Those opportunities are worth protecting, and I urge the Government to recognise the damage that they are doing to the opportunity for our young people to fulfil their potential.
It is a pleasure to follow my hon. Friend the Member for South West Hertfordshire (Mr Mohindra). In so many debates, we learn a little about colleagues on both sides of the House, and this one gives us the opportunity to reflect on the summer jobs that many of us had. I think back to my first job—this will probably show how old I am now.
I will take 21 any day. My first job paid the grand sum of 50p an hour. At the end of the week, when I got my pay packet—it was a pay packet in those days; there was no bank transfer—I felt quite wealthy. For the first time, I had a bit of money of my own; I could spend it on what I wanted, instead of having to ask the bank of mum and dad for money.
Blake Stephenson
My hon. Friend makes a compelling case for drilling in the North sea—a case that he made very successfully in the by-election in Aberdeen South. I congratulate him on that, and welcome him to the House of Commons.
In the 15 years that I was working full time in the City before coming here, I saw a ratcheting-up of costs and the de-risking of our economy. Energy costs have increased as we have sought to decarbonise; employment flexibility has gone down; taxes have gone up; and regulatory burdens are uncontrollably high. I will give two examples from my time in financial services. They are not necessarily related to summer jobs, but I will come to that. Anti-money-laundering regulations are now costing the economy £33.6 billion a year, and bank ringfencing is costing banks £1.5 billion a year. The regulatory burdens throughout our economy are absolutely incredible.
We have failed to properly recognise that it is businesses that grow the economy, not Governments. Over the past two years, the Government have missed an opportunity. They came in claiming that they would be the “change Government”, but they have doubled down on all the mistakes of the past. Tax has gone up over the past two Budgets by £66 billion, and red tape has gone up. The Minister said that he had aspirations to reduce red tape, but in fact the Government have demonstrated that they are capable of increasing red tape. With the Employment Rights Act 2025—the unemployment rights Act—labour flexibility is down.
Britain has spent two decades trying to build an economy on less risk, and it is just not possible to do that. The impact, unfortunately, is felt most acutely by our young constituents. In particular, as a result of the Government’s interventions over the past two years, the Saturday job is disappearing. That is absolutely tragic. Hon. and right hon. Members from across the House have spoken passionately about their first job. If you can believe this, my first job in north-west Hampshire was sweeping a weighbridge at a scrapyard. That was not under contract, and I was not promised any particular hours. As a 16-year-old, or thereabouts, I would sweep the weighbridge in the morning and wash the owner’s car—and I would get 20 quid, not 50p, so there was quite some inflation since my right hon. Friend the Member for Aldridge-Brownhills (Wendy Morton) earned that wage.
Blake Stephenson
Or, indeed, I was overpaid.
I moved on and washed pots in my local pub. Then I progressed and became a waiter and ran wedding receptions. By the time I got to university, I was working in a Zizzi pizza restaurant—other pizza restaurants are available—and I enjoyed it thoroughly. I made connections, I blossomed, and I became more confident. I know that people describe these as soft skills, but my right hon. Friend the Member for East Hampshire (Damian Hinds), who is not in his place, correctly said that they are the hard skills—the difficult skills that we need in our economy. We will only have them in our economy if we grow them in young people when they first start working.