Representation of the People Bill
Debate between Gavin Williamson and Mike Martin(2 days, 12 hours ago)
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Sir Gavin Williamson (Stone, Great Wyrley and Penkridge) (Con)
There was much in what the Secretary of State said at the start of his opening remarks—about the threats to our democracy, and the challenges that we face—that I very much agree with. However, I worry that the Bill does not go in quite the right direction to deal with those threats, and with the challenges presented by Russia, China, Iran and North Korea. They are all nations that wish to undermine our democracy, and there is tentative evidence to show that all of them are already trying to do so by influencing our democratic structures. However, it feels as though the Bill is more about gestures than substantial change.
Changing the architecture of democracy should be done incredibly thoughtfully and carefully, with proper consideration and consultation. There are areas on which there will probably be a great deal of agreement; on others, there may be some disagreement. What is required is a thoughtful conversation that involves all.
I will pick up on a number of areas where there are deep vulnerabilities in the Bill. Automatic enrolment superficially sounds like a great idea—something that I think many in this House would happily support. However, there is no clarity about how it will be rolled out across the country. At the next general election, it will be available in some parts of the country, but not others. We will effectively have two distinct electoral rolls. I am not sure how that will go. I am not sure if it will even survive judicial review, but then I am not a lawyer, and the Secretary of State probably has considerably more recent experience of judicial review than I have. To me, it looks very vulnerable to challenge. It is important that the Secretary of State sets out clearly how the issue of boundaries will be dealt with, which will, of course, be addressed straight after the next general election.
Of course, if we are to have auto-enrolment in certain parts of the country—which will be chosen, I presume, by the Secretary of State, as opposed to this House—then, hypothetically, he could select areas where auto-enrolment would be beneficial to the Labour party. I am sure the Secretary of State would never be so partisan as to do that.
Mike Martin (Tunbridge Wells) (LD)
We have heard this argument a couple of times, and the right hon. Gentleman is making it well. He is making a grave accusation. Surely the easiest way to put this argument to bed would be for the Secretary of State to simply intervene on the right hon. Gentleman and state that auto-enrolment will be rolled out in all areas of the country before the next UK general election.
Sir Gavin Williamson
The hon. Gentleman makes a valuable point; this concern could easily be addressed.
Business Rates Relief: High-street Businesses
Debate between Gavin Williamson and Mike Martin(9 months ago)
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Sir Gavin Williamson
The hon. Lady is absolutely right that we need reform. Such closures affect her constituent and many others, but these are not just businesses; they are someone’s hopes, dreams and aspirations to create something better and build a better life for themselves and other people. According to the Campaign for Real Ale, 125 pubs have already closed since 1 April. That is 125 communities that have lost something that they may never get back. It is 125 families—and many more, if we take into account the families of the many people working in those pubs—who have seen their livelihoods disappear.
We cannot just dismiss this problem. I thank the Chamber engagement team, which, in preparation for this debate, did a number of surveys asking for the views of people from across the country about the impact of business rates on their businesses. It is interesting to hear those stories. Lorraine, who has a hospitality business, said:
“It is time our industry had some real help. We had nothing left to give. I predict even more closures in the next two years.”
Karen, who runs a salon and health club, said:
“The rates are more than my rent and with the wage increases and massive hike in rates, I can’t survive. I’m on borrowed time.”
This is about not just those people, but the many people they employ. Rachel, who has a beauty salon, said:
“I used to employ 18 people and now only employ four, so it’s effectively made me shrink the business.”
James, who runs a hospitality business, said:
“The reduction in relief has led me to reduce my workforce by 33%.”
There are business out there that last year were perhaps thinking about expanding—maybe taking on another pub or opening another shop—but that is no longer viable. Most business owners—who, like the people employed, are working people—are the last ones to get paid. They take the risk, and the Government do not seem to want to encourage them, let them grow or give them the opportunity to succeed. They just make it harder.
This issue is not just about businesses; it is also about communities. Although there can be no finer high streets than the ones in my constituency—[Interruption.] Now we are getting into a real debate, but I will stand firm. However, there is nothing sadder than seeing an empty shop that was previously occupied. That is not just about the demise of a particular business; it brings down the whole high street.
We see so many businesses being impacted in multiple ways. We see the impact of the changes in business rate relief; we see the impact of the changes in national insurance, and not just in terms of the rate but in terms of when it starts to get paid; and we see the cumulative impact of changes to employment law. We want businesses to take on people and to make it as easy as possible for them to take on new starters. Sadly, it is becoming harder and harder for them to do so.
The reality is that young people are some of the most impacted. Almost half of those working in hospitality in my constituency are aged between 16 and 24. I appreciate that the Government may take the view that their jobs are not important ones and that they will go on to something else, but I think that it is vital that we provide opportunities for young people at the start of their careers. Hospitality and retail are vital for that, whether the jobs are full time or part time. The impact of the changes to rate relief means that fewer young people are in a position where they can get the jobs they need to get on in life.
Mike Martin (Tunbridge Wells) (LD)
The right hon. Member is making a very important point. This issue is important across the whole socioeconomic spectrum. I had a relatively privileged upbringing, but my first job was washing dishes in a hotel. That job taught me what hard work is. The lessons that we learn in those types of jobs last throughout our lives.
Sir Gavin Williamson
The hon. Member makes a very valid point. This issue is about ensuring that there is as much opportunity as possible for all people, whatever their background. We should not be dismissive of such jobs—I am sure that the Minister is not—but they are the jobs that have been squeezed out by the changes to rate relief.
The Minister knows that I am one of his biggest fans; indeed, I am a great admirer of him. I see him as a rising star. While the Chancellor hides, he is wheeled out. He is truly an impressive figure at the Treasury. I am not sure whether it is due to the diminished status of the Chancellor that he is looking taller, but he is certainly one of the rising stars of the Labour Front Bench. I actually enjoy reading some of his many comments. He is a very thoughtful and accomplished Minister. I imagine that he is a joy to work with and that his civil servants value him greatly.
However, I will just read out some of the things that the Minister has said in the past:
“As the shadow Chancellor, my right hon. Friend the Member for Leeds West (Rachel Reeves), has set out, if Labour were in government, we would scrap and replace business rates, and shift the burden away from hospitality and retail businesses on the high street, which continue to shoulder a heavy burden compared with those that operate primarily in the digital economy.” —[Official Report, 31 January 2024; Vol. 744, c. 318WH.]
I do not think that there is a Member in this Chamber who would disagree with the Minister on that. I think everyone in the debate today would say, “All power to the Minister’s elbow, and we look forward to him announcing how that will be done.”
Most businesses I have spoken to have found that they are paying more today than they were just a year ago. When in opposition, the Minister was busy making many comments, including:
“A Labour Government will help to breathe new life into our high streets by calling time on the outdated model of business rates, so that British businesses in all parts of the country can play their part in creating economic growth and the jobs of the future.” —[Official Report, 13 December 2022; Vol. 724, c. 262WH.]
Sadly, at the moment, the Government are doing quite the reverse. Every small business in my constituency has been impacted by higher rates, not lower ones.
There is concern about what this will look like in the future. There is nervousness that even the reduced reliefs that have been put in place will have gone altogether. I very much hope that when the Minister responds, he will be able to give us every assurance that efforts are being made to deal with the impact of the change in business rates relief on businesses not just in Stone, Great Wyrley and Penkridge, but across England. I hope he will give them some comfort that the Government do not just say things in opposition, but do them in government.
We have a sorely outdated model of billing businesses. I know the Treasury loves nothing more than the rates system, because it is one of the easiest ways to collect tax, but there are concerns that, whether or not under pressure from President Trump, when it comes to changing how digital services taxes will be done, the Treasury might come for more money from small businesses, the high street and family companies. I hope the Minister can clearly set out that that will not be the case. I appreciate that he will not wish to steal the Chancellor’s sandwiches for any future statements, but I hope he can say clearly that there will be help coming for so many businesses right across the country, and that we will support those job creators.