Youth Unemployment
Debate between Harriett Baldwin and Gareth Snell(6 days, 8 hours ago)
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Dame Harriett Baldwin
I am sad to see that the hon. Gentleman does not recognise that that young person will now be standing next to another young person who is unable to get a job. Surely he must agree that the level at which people are being paid has had an effect on the fact that there are fewer people in these jobs.
Dame Harriett Baldwin
Government Members do not have to listen to me; they can listen to the Federation of Small Businesses, which said that those wage rises risk pricing young people out of the labour market. That is not me speaking; that is the Federation of Small Businesses, and I am sure the hon. Gentleman will agree with it.
Gareth Snell
The Federation of Small Businesses will be looking for answers to those policy challenges that it is rightly putting to this place. What would the hon. Member’s answer be? By how much should young people’s pay be reduced in order to strike the balance that so many Opposition Members have talked about? By how much should the minimum wage be reduced for young people so that they can be guaranteed a job?
Dame Harriett Baldwin
I have news that will perhaps come as a bit of a shock to the hon. Gentleman: it is his party that is in power, and it should be his Front Benchers and the Chancellor he should be having that conversation with. Labour market economists at the Resolution Foundation—not normally considered to be right-leaning, by the way—have noted that when minimum wages rise faster than productivity, employers tend to favour experienced workers, disadvantaging young applicants. The very people Labour claims to champion are the ones being priced out of the labour market.
Thirdly, Labour’s business rates reforms have piled pressure on our high streets. As we have heard time and again in this debate, it is hospitality, retail and small firms that traditionally give young people their first job. Indeed, my first job was behind the bar at a now defunct pub; it taught me an enormous amount, and I was very grateful for the opportunity. The Confederation of British Industry has said that rising business rates “suppress investment and hiring”. When fixed costs for employers increase, their capacity to hire is reduced.
Lastly, and perhaps most damaging of all, is Labour’s Employment Rights Act 2025, which introduces sweeping day one rights across the board. The Government’s own economic analysis of the Bill says:
“higher labour costs could reduce demand for work, damaging the employment prospects of the same workers the package is trying to support…the risks are highest for workers with the weakest attachment to the labour market…and the youngest workers, since they are still gaining experience and skills.”
This is not a partisan point—this is the Government’s impact assessment of their own legislation.
According to the Youth Futures Foundation,
“the risk profile of recruiting young people has increased”.
The Chartered Institute of Personnel and Development reports that employers are already reducing recruitment plans, particularly for inexperienced workers, due to regulatory uncertainty.
Budget Resolutions
Debate between Harriett Baldwin and Gareth Snell(1 year, 3 months ago)
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Dame Harriett Baldwin
I will not give way to the hon. Gentleman, who so often gave evidence to the Treasury Committee. I recall that I had to press him on the fact that NHS productivity has not yet returned to its pre-pandemic level. He told us on the record that if it did, that would be worth £20 billion in additional NHS output.
The Chancellor promised that she wanted to focus on growth. That is her mission, but I believe that more taxes, more public spending and more borrowing do not lead to growth; if they did, Venezuela would be one of the most prosperous countries on earth. What the Chancellor was planning all along, together with her Cabinet colleagues —who have no experience of working in the wealth-creating, job-creating, tax-paying private sector—is a Budget of the public sector, by the public sector, for the public sector. She cannot blame us, because in her first 25 days as Chancellor she announced £25 billion of additional new spending, whether that was for Great British Energy, a national wealth fund, or inflation-busting backdated union pay rises with no productivity requirements.
I also want to speak up for my farmers in West Worcestershire.
Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)
Will the hon. Lady give way?
Dame Harriett Baldwin
Does the hon. Gentleman want to stand up for my farmers? My farmers are some of the most productive and hard-working people in this country. They are the ones who put food on our tables, and they are soundly disappointed with today’s Budget. There was no help or certainty for them in the Budget—no help for them through the agricultural property relief that allows them to hand on the family farm to the next generation. Labour Members should know that this Budget will mean that many family farms will be broken up, unable to be handed on to the next generation.
Oral Answers to Questions
Debate between Harriett Baldwin and Gareth Snell(7 years ago)
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Harriett Baldwin
Ethiopia is one of the countries in which the Department for International Development has extensive programmes. I am very pleased to hear that the good folk of Colchester are supplementing that work with this wonderful project to knit hats for babies.
Gareth Snell (Stoke-on-Trent Central) (Lab/ Co-op)