Backing Business to Create Economic Growth
Debate between Harriett Baldwin and Ben Coleman(3 weeks, 6 days ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Dame Harriett Baldwin (West Worcestershire) (Con)
It is an honour to respond on behalf of His Majesty’s loyal Opposition to this debate on backing business to create economic growth. I would like to start by congratulating the Chief Secretary to the Treasury, the hon. and learned Member for Northampton North (Lucy Rigby), on her promotion. It seems like only moments ago that she was a colleague on the Treasury Committee, and now she is in charge of the whole nation’s spending, so I wish her the most enormous amount of luck. I also want to say, Madam Deputy Speaker, that I will be mentioning by name some colleagues who have not been in the debate, but I have warned their offices that I will be doing so.
I want to focus in this debate on a simple truth that many businesses across this country have come to recognise, which is that when it comes to backing business to create economic growth, Labour does not know what it is doing. Labour does not know how to govern when times are tough. It entered government without a plan and we are seeing the consequences. I am afraid that this goes deeper than the Prime Minister. Only one Labour Cabinet Minister has started a business, and none of the Prime Minister’s wannabe rivals has worked in a business or a start-up. This matters because it goes to the core of this Government. Whose side are they on? Time and time again, Labour shows that it is on the side of “Benefits Street”, not on the side of people who work, who strive and who save.
When this Labour Government came into office, they had a choice. They wanted to deliver growth. They could have backed business. They could have supported enterprise. Instead, they delivered higher taxes, higher costs and higher uncertainty, and I am afraid that the consequences are now undeniable. Business confidence has collapsed to record lows. The Institute of Directors reported its lowest-ever confidence reading in March 2026, and the Confederation of British Industry says that businesses expect their activity to fall. Jobs are being lost, payroll jobs are down, and the ITEM Club has forecast that there will be 160,000 further job losses this year because of a slowdown in growth and rising energy prices. Retail sales are weak, and nearly half of all businesses are now worried about business rates, which are rising sharply.
It all started with the Chancellor’s first Budget. Labour’s £25 billion jobs tax has increased the cost of employing someone by around £900 per person and, as a direct result, youth unemployment is at a shocking 15.8% on Labour’s watch. For an average pub with eight employees, national insurance means an extra £7,200 bill every year. At the same time, Labour has squeezed our high streets with rising business rates. The result of all this is that one in eight business leaders are planning to leave Britain and 30% of those on The Sunday Times rich list have fled high-tax, socialist Britain. That is a vote of no confidence in this Government.
The damage is not confined to business; it is spreading across the whole economy. Inflation is up. Borrowing costs are surging, with gilt yields at their highest level in decades. Debt interest is spiralling towards £140 billion a year. We are now paying more to service debt than to invest in our future. That is the direct result of a Government without a plan.
So what will happen if we get a new Labour Prime Minister? Will that help businesses and the economy? No, because Andy Burnham wants higher taxes and more borrowing, the right hon. Member for Ilford North (Wes Streeting) wants higher taxes and more borrowing, and the right hon. Member for Ashton-under-Lyne (Angela Rayner) wants higher taxes and more borrowing. Businesses can see where this ends. It ends in low growth and unsustainable debts. Perhaps the IMF will have to be called in, as it was under Denis Healey.
I thank colleagues on the Conservative Benches who have contributed to today’s debate, and spoken powerfully for their constituencies and the businesses that they represent. Their speeches were beams of light shining into this Chamber from the real world. My right hon. Friend the Member for New Forest West (Sir Desmond Swayne) spoke about debt and chaos. My right hon. Friend the Member for Salisbury (John Glen) talked about the importance of small businesses and deregulation, and the impact on them of national insurance. My right hon. Friend the Member for Tonbridge (Tom Tugendhat) referenced the debt markets and the pressing need for welfare reform. My hon. Friend the Member for Bridgwater (Sir Ashley Fox), in an outstanding speech, spoke about his local businesses, and said that the last thing they need is another holiday tax.
In an excellent speech, my hon. Friend the Member for Farnham and Bordon (Gregory Stafford) highlighted the impact on jobs for young people, and in a powerful contribution, my hon. Friend the Member for Rutland and Stamford (Alicia Kearns) spoke about solar farms and the shocking information about self-swab rape kits. My hon. Friend the Member for Mid Norfolk (George Freeman) spoke about rural businesses and rural deprivation, and made an outstanding contribution on turning things around for his constituents in Mid Norfolk.
Turning to the King’s Speech, what do we see? We see a King’s Speech full of more intervention, more regulation, more taxes and more uncertainty. There is even—I am not making this up—a regulating for growth Bill: more compliance burdens dressed up as protections and more top-down control from Whitehall. Labour Members describes it as growth coming from an interventionist Government, but they are wrong. Growth comes from entrepreneurs who take risks. Growth comes from businesses that invest and hire. Growth comes from workers who strive and succeed. That is why we have set out a clear alternative: a serious plan, a credible programme.
Dame Harriett Baldwin
I am going to make a bit of progress on our serious, credible plan—a pro-growth alternative King’s Speech, with 16 Bills designed to get Britain working again.
First, we will give people jobs and hope with our get Britain working Bill. We will repeal the job-destroying elements of Labour’s Employment Rights Act, saving businesses up to £5 billion a year. We will restore flexibility in the labour market, and reintroduce minimum service levels to protect essential services from strikes. That means more jobs and lower hiring costs—a labour market that rewards work.
Secondly, we will back our communities with our back our high streets Bill. We will introduce permanent 100% business rates relief for retail, hospitality and leisure, which will support 250,000 of the smallest businesses with lower bills, leading to stronger high streets and protecting jobs. While Labour targets family businesses and farmers with punitive taxes, our plan is simple: we will scrap the family business and family farm tax, and back those who grow our food, create jobs and create wealth.
Thirdly, we will cut red tape with our deregulation of business Bill. We will scrap unnecessary environment, social and governance reporting requirements, which cost businesses millions every year—less bureaucracy, more time to grow and more investment.
Fourthly, we will restore industrial competitiveness with our save British industry Bill. We will repeal the Climate Change Act 2008, establish a monitoring and reporting mechanism for the offshoring of emissions, axe the carbon tax, which pushes up energy bills, and repeal the zero emission vehicle mandate. That will lower costs and lead to stronger industries—jobs kept in Britain.
Fifthly, we will tackle energy costs—many hon. Members raised energy costs in their contributions today—with our cheap energy Bill. We will cut electricity bills for businesses by 20% and household bills by £200 by taking VAT off energy bills, axing the carbon tax and scrapping the Energy Secretary’s renewables subsidies. That will give businesses immediate relief and greater competitiveness, and lead to stronger growth.
Beyond those Bills, we have plans to scrap stamp duty to get the property markets moving, to properly fund our armed forces, to reform welfare, to get people back into work and to approve new North sea licences for energy security. Because growth is not achieved through slogans—
Ben Coleman
I was going to say that I cannot be the only person in the House who is thrilled by the great list of exciting things that the hon. Lady is setting out for the country. I wonder why she did not do any of them during the 14 years she was in power, why it is only now that she has ideas for the country, and whether she could have done something that would not have led to the catastrophe that we are trying to put right—just a suggestion.
Dame Harriett Baldwin
I am afraid it is the historical role of my party to clean up the mess that Labour Governments leave behind. Growth is not achieved through slogans; it is delivered through serious and sustained planning.
In conclusion, the debate comes down to a clear choice: Labour’s approach—
Dame Harriett Baldwin
The hon. Member mentions Liz Truss from a sedentary position. Is he not aware that gilt yields are now higher than at any time during that brief period? I am sure he will be welcoming the higher taxes and more borrowing that his Government have caused, the higher energy costs imposed on his local businesses, the more regulation that has led to less growth—or he could adopt the Conservative approach: lower taxes, lower costs and less regulation. [Interruption.] The Business Secretary says “More growth” from a sedentary position. He may be referring to the first quarter of this year when the biggest thing that happened for growth in this economy was vehicle repair. I call that the pothole growth strategy, and I am afraid that that is the reality if we dig into the growth numbers.
Our approach is less regulation and more growth. Ultimately, this is about values. Labour has the wrong values. It is for “Benefits Street”, and we are on the side of people who work, people who strive, people who save. Only the Conservative party has a plan to reduce costs and deliver the growth that we all want. Only the Conservative party is ready to govern. Only the Conservative party will back great British businesses to build a stronger economy for the future.
Local Post Offices
Debate between Harriett Baldwin and Ben Coleman(1 year, 4 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Dame Harriett Baldwin
I have given way.
The previous Government worked to enter into a new partnership with post offices and came up with the idea that people could confirm their identity in person. That is a way of using that valuable network across the land. We recognise that vulnerable people sometimes struggle to verify their identity online. We also began the initiative to help communities dealing with bank closures by setting up a network of banking hubs. I was pleased to hear the Minister confirm earlier today that he will continue backing banking hub delivery through the Post Office, but does he consider that the framework negotiations between the Post Office and the banks, which are in their final stages, are going well?
One year on from ITV’s historic programme “Mr Bates vs the Post Office”, I want to put on record my thanks to my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) for all he did to address the issues raised in that programme. Can the Minister detail the progress his Government are making on the compensation for sub-postmasters?
I want to raise the issue of Fujitsu, which designed the Horizon IT system that has destroyed so many lives and livelihoods. Under the previous Government, there were discussions with Fujitsu about providing a share of the compensation to the victims of the Horizon scandal, and Fujitsu confirmed that it will pause bids for Government contracts until the public inquiry is concluded. However, this month it was reported that the Government have awarded new contracts to Fujitsu. When Labour was in opposition, many Labour Members criticised awards made to Fujitsu, so can the Minister provide an update on the Government’s current approach?
Ben Coleman
The hon. Lady mentions the Horizon scandal. Is she of the opinion that the previous Government’s failure to address the Horizon scandal over such a long period of time and the billions of pounds that have had to be spent sorting out the mess since then have nothing to do with the financial problems that the Post Office now finds itself in?
Dame Harriett Baldwin
I do not want to politicise this too much, because I think that had gone on for a long period of time, and the inquiry took a lot of evidence last year. I think my hon. Friend the Member for Thirsk and Malton played a remarkable role in exonerating so many people, and in setting up the public inquiry.
My next question to the Minister is: could he provide an update on what he is hearing through his channels about when the inquiry may publish its report. It finished taking public evidence at the end of last year, and I anticipate it may publish that later this year, but does he have an update on that for the House? Does he have any plans to compensate sub-postmasters and sub-postmistresses who were victims of Horizon’s predecessor systems—the Capture and ECCO systems that predated Horizon—and does he have plans to quash any convictions arising from those two systems?
In the spending review, how much public money is the Minister requesting to put in a replacement for the Horizon system? Can he tell us how many post offices currently benefit from small business rate relief, and what are the Government plans about continuing that throughout this Parliament? Further to the question from the hon. Member for Wokingham (Clive Jones) about today’s worrying announcement from Ofcom that second class post may be delivered only every other weekday and not on Saturdays, what discussions is the Minister having with Ofcom to prevent this further attack on the demand for our precious postal services?
To conclude, we have heard how incredibly important this precious network of friendly people across our land is to this country, with those 11,500 post offices and the distance requirements that are in place. After hearing from so many colleagues, will the Minister reassure the House that he will sustain that network throughout the life of this Parliament. Prevention is so much better than cure. Let us all focus on supporting our much-loved post offices in any way we can to continue the wonderful work that they do up and down the country.