Employment Rights Bill

Graham Stuart Excerpts

Report stage
Wednesday 12th March 2025 Commons Chamber

[Sarah Bool (South Northamptonshire) (Con)]

There are 5,310 businesses registered in my constituency of South Northamptonshire. Of those, 99.6%—or specifically 5,245—are small businesses. This Bill, among many of the Government’s policies, is a calamity for those small businesses. Not only are many of them rural, meaning that they will be affected by the family farm tax and now by the removal of the sustainable farming incentive, but as the chair of the Federation of Small Businesses has said, these small and medium-sized enterprises will struggle to adapt to the 28 major changes that the Bill makes to employment law.

First, it was the Government’s jobs tax, then it was their cuts to rate relief for hospitality businesses, and now they are smothering SMEs with red tape. Analysis published by the Department for Business and Trade says that this will impose a cost on businesses in the low billions of pounds per year, but that is not money that many of my small businesses can afford right now. This is why the Opposition have called for small businesses to be exempt from the parts of the Bill that would heap unsustainable costs on them.

Why do the Government seem to hate small businesses so much? Perhaps it is because the majority of the Cabinet have spent their careers in the public sector and have zero understanding of what life is like for the many entrepreneurs with SMEs across the UK, including in my constituency. We learned this week that, for the first time since records began in 2012, the number of companies registered at Companies House has fallen. Growth forecasts have been downgraded and the number of vacancies has declined. All this is a result of the choices the Government have made and continue to make in this Bill.

With all of this, the UK risks becoming a globally uncompetitive economy, particularly when other countries such as the United States are slashing regulation and unleashing their businesses to grow their economies. The Opposition have tabled new clause 90 for exactly this reason. It would ensure that when the Secretary of State makes regulations under part 4 of the Bill, he has to have regard to growth in the medium to long term. I join the shadow Minister, my hon. Friend the Member for Mid Buckinghamshire (Greg Smith), in calling on the Government to support new clauses 89 and 90 to ensure that growth happens. Our economy is already struggling under the weight of Labour’s tax rises. Why are the Government opposing our efforts to ensure that they consider how burdensome regulation might impact on businesses?

[Graham Stuart (Beverley and Holderness) (Con)]

A lot of people outside this place might feel that the answer to that question is that the trade unions have funded Labour Members—[Interruption.] The hon. Member for Derby South (Baggy Shanker), who is talking from a sedentary position, received more than £27,000 from two unions in the latest year of declarations and did not think it appropriate in this debate even to mention that number, which may well have influenced his thinking and led to the dire outcomes that my hon. Friend is explaining to the House.

[Sarah Bool]

My right hon. Friend makes a powerful point, and I think all Labour Members must reflect on this because we need the public to understand truly why this legislation is going through.

That the Government have seen fit to table 87 of their own amendments at this stage alone is indicative of how uneasy they must feel about the Bill. We are even told by the media that the Treasury has warned the Deputy Prime Minister and the Secretary of State about the consequences for the economy of enacting these laws, yet they seem to have seen fit to plough them through anyway. As per usual, Labour is paying lip service to growth while sticking true to form with their socialist ideology. I was not born in the 1970s but it appears that I am going to live through the equivalent in the years ahead, as Labour plays Abba’s 1976 hit “Money, Money, Money” for its trade union paymasters.

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[Gregory Stafford]

I am sorry that I am such a disappointment to the hon. Lady, but maybe she will get over it.

The Bill is a roll-back of the most important changes that we made when we were in government. It is no surprise that trade unions have warmly embraced the legislation, over 200 amendments having been hastily shoehorned in to satisfy those who line the Government’s pockets. Perhaps it is purely coincidental that their wishes have been granted, although one might wonder if the £5.6 million in donations the Labour party has received since July has something to do with it.

[Graham Stuart]

Despite her proud membership of trade unions, the last Labour Member to be called to speak, the hon. Member for Coventry South (Zarah Sultana), did not mention the more than £9,000 that she received just in the last year, any more than the Labour Member who spoke before her, the hon. Member for Derby South (Baggy Shanker), mentioned the £24,000 plus that he received. If Labour Members were truly proud of the way that they have been bought and paid for by the trade unions, perhaps they would be open about how much they have received.

[Gregory Stafford]

My right hon. Friend makes a key point. The change since yesterday has been interesting. Yesterday, Labour Members were clear about declaring that they were members of trade unions, but only today have they suddenly realised that they should be declaring the amount of money that they are receiving directly.

We heard yesterday from the shadow Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake), that the legislation will allow unions to bypass current rules, such as the rules on opting out of political donations. It must be fantastic news to the Labour party that it will now receive donations from workers by default, while businesses will face reduced notice periods for strikes, leading to even more disruption and economic damage. It is clear to me, and to the hundreds of businesses that have pulled their support for this Government, that this is not about protecting employment rights, but about consolidating union power.

Let us briefly look at some of the amendments. Amendment 292 would require trade unions to notify their members every year of their right to opt out of the political fund, and to obtain an annual opt-in. That change would ensure that unions do not continue to fill Labour’s piggybank, and do not lock workers into automatic donations unless they actively opt out, which is as much a memory test as an admin task. Unamended, clause 52 is not about transparency, but about keeping the money flowing to the political party with the most to gain.

Likewise, there are new clauses and amendments that would have introduced transparency about the facilities provided to trade union officials, learning representatives and equality representatives. Clauses 54 and 56 are designed to reduce transparency and accountability for union spending, allowing union officials to continue to benefit from facility time without proper scrutiny.

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This Bill is not a modernisation of employment rights; it is a gift to the trade unions at the expense of economic growth, job creation and business confidence. The Government have failed to strike the right balance, and we will continue to oppose this legislation.

[Graham Stuart]

The impact assessment states that these measures could have a £5 billion impact, in addition to the £25 billion impact of the national insurance contribution changes. Does my hon. Friend agree that what the impact assessment is missing is how much union funding the measures will drive directly to the Labour party as a result? We ought to know how many hundreds of thousands or millions extra will come to the Labour party and to Labour Members to make them support this growth-killing set of measures.

[Alison Griffiths]

It is a fascinating question, and we wait to hear the answers from Government Members.

[Graham Stuart]

The Minister will tell us, we hope.

[Alison Griffiths]

Indeed, perhaps the Minister will give us the answer.

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[Gregor Poynton]

I will certainly come on to that, but one way is that the Bill will improve employment relations in workforces. In the past 14 years, we have seen strike after strike because of the Conservatives’ approach to industrial relations. This change will improve productivity.

The Bill will deliver real-life improvements that will be felt across Britain. Key amendments that strengthen protections for the lowest-paid workers will ensure that all workers are treated with the decency they deserve. I welcome the vital steps that the Bill takes to extend protection, from exploitative zero-hours contracts, to protecting the voice of working people and strengthening statutory sick pay.

As a member of the Business and Trade Committee, I have been able to scrutinise large businesses that choose to have zero-hours contracts in place. In one evidence session, I heard from a company representative who revealed that employees can have their shift changed at 24 hours’ notice, but not receive a single penny in compensation. The Bill is vital in addressing the challenges of financial planning faced by families who are dependent on zero-hours contracts. More than 1 million people on such contracts will benefit from the guaranteed hours policy. Crucially, the Bill will ensure that Governments work with businesses, and will support employers who endeavour to comply with the law. With the Government amendments, it will also expand and strengthen the powers of the fair work agency to bring civil proceedings against non-compliant employers at employment tribunals and to issue civil penalties, such as fines, to employers who breach pay-related rights and underpay their staff.

[Graham Stuart]

Given that the measures we are debating will give so much more power to the trade unions, why has the hon. Gentleman not felt it incumbent on him to declare the thousands of pounds that he has received from trade unions in the last year?

[Gregor Poynton]

I thank the right hon. Member for highlighting that, because I am proud of the money that I receive from unions. I am also proud of the fact that entrepreneurs and business people donate to my campaign as well. The right hon. Member neglected to mention that when he brought the subject up. Because I am both pro-business and pro-worker, I want to see growth in the economy. I am proud to receive donations from employers and people who have created wealth in this country, and I am also proud to receive donations from trade union members in my constituency.

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[Mr Frith]

I draw Members’ attention to my entry in the Register of Members’ Financial Interests—

[Graham Stuart]

How much?

[Mr Frith]

If the right hon. Member listens, he will hear.

From my entry, Members will see that I am a proud member of the GMB and that my donations include those from entrepreneurs and businesspeople alike who are collectively sick of the 14 years of the Conservative Government. I will take no lessons from that party, given its record over those 14 years, and none of the speeches by Conservative Members have defended any achievements that were made in 14 years relating to this Bill or anything to do with our economy. That is the party of “Eff business”, of a striking NHS, of 60% furlough settlements for Manchester workers, of cash for covid contracts, of inflation highs, of Liz Truss, of the mini-Budget disaster, of zero growth, of the collapse of infrastructure, of public spending power disappearing, and of the state of our roads and of our prospects. It is for this reason that my entry includes a combination of GMB membership, given the members and the workers that we represent, and of the entrepreneurs who wanted rid of that lot over there.

[Graham Stuart]

Will the hon. Gentleman give way?

[Mr Frith]

I will make some progress. The right hon. Gentleman has said plenty already, and he came in only halfway through the debate.

I am proud to stand on the Labour side of the House as someone who has founded a business, run businesses for others and run my own business. Fifteen years ago, I made a commitment to be the voice of experience for good small businesses in the proud Labour movement that we now have in government, not least to challenge the claim of the Conservatives that they alone represent business interests. I am proudly pro-business and pro-worker, just as this Government are. Fixing the foundations of our economy means fixing the foundations of our employment. Just as the Government are strengthening our economic base, they are now laying down stronger employment foundations.

Running a business is hard work. It requires an initial leap of faith, the courage to embrace risk, the ability to adjust, the resilience to overcome failure and the perseverance to celebrate success. The role of government is to improve life and living for everyone in this country. The role of good employment is exactly the same. Small businesses are at the heart of this effort. That is why the Government are right to focus on skills, value for money with public spending, opening up public sector commissioning to SMEs and challenger companies, and, crucially, the Bill making employment a more positive, rewarding experience. Insecure work leads to insecure living, and neither will improve life in Britain. We should highlight and support those employers who are already leading the way. Much of this legislation simply catches up to their high standards.

The weight of responsibility that comes with creating somebody else’s payslip cannot be overstated. It is humbling, sometimes worrying and never easy. It requires teamwork and the skills of others, but also leadership—sometimes lonely leadership. It means shouldering risk and sharing rewards. That is why the Government’s ambition for growth is the right one. The focus must be on net growth, locking in certainty for those in work by upholding rights for the many, while fostering new opportunities to expand our economy.

I want to salute those businesses and entrepreneurs for whom much of this legislation emphasises the good practices they already uphold. In Bury, businesses such as the Lamppost Café, where—a declaration of interest, Madam Deputy Speaker—my daughter works part time, Life Store in Ramsbottom, Wax and Beans record and coffee shop in Bury, Bloom, Avoira, MSL Solution Providers, Ernill’s Bakery, Wallwork Aerospace Heat Treatment, and Hargreaves. These businesses, often family run, are the backbone of Bury, and so they build the backbone of Britain; rooted in their communities; providing stability, pride and good honest work for an honest day’s pay. Many stand ready to do more to grow, invest and create more opportunities.

[Graham Stuart]

I am grateful to the hon. Gentleman for giving way. Could he tell us which of that fine list of businesses have said that they support the Bill?

[Mr Frith]

I have had conversations with the vast majority of them. They support the general emphasis—[Interruption.] Actually, if the right hon. Gentleman has been listening, he will know that the argument I am making is that on much of the proposed legislation—giving rights on day one, being fair minded, making work pay—they are already doing that. The point I am making—[Interruption.] I have just named several. The most recent conversation I had was with MSL Solution Providers. Its challenges and arguments are around R&D tax credits, an argument I will make in due course. But the Conservatives’ claim of being the voice of small business and entrepreneurship is misguided, misrepresented and, frankly, out of date.

Once we have laid the new employment foundations, we must support them in building their businesses further. In particular, for some that means ensuring that AI enhances and expands prospects and prosperity in the employment market and the wider economy.

Lastly, I am proud to highlight my support for extending bereavement leave to those who experience a miscarriage—a compassionate and essential measure that I proudly support alongside my hon. Friend the Member for Luton North (Sarah Owen).

The Bill is not just about a legislative process; it is about our values. It is about recognising that a thriving economy and a fair society must go hand in hand with tackling our inequalities. It is about ensuring that whether employer or employee, the foundation on which our employment is built ensures strength for all.