(2 weeks, 6 days ago)
Commons Chamber
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
The King’s Speech mentioned that mayors might have that power, but that foundation strategic authorities might also have it. Obviously, the approach has not been decided yet, but is that still the case?
Yes. I am very glad that my hon. Friend picked me up on that—that is a very good point.
I want to make another point about the levy, which is that some people seem to be suggesting that all of this is going to start in a couple of weeks’ time. Far from it; this levy is far from imminent. We are consulting on it, and that process will take some time—I doubt we will have anything in place in the next 12 months. I very much encourage people to take part in the consultation so that we can decide how to move forward. Of course, any mayor or strategic authority will want to consider all the issues in the round and whether a net benefit can be gained from introducing such a levy, notwithstanding the additional pressures that there might be on costs in the tourism and hospitality sector.
Of course the hon. Member is right. Nobody wants exploitative zero-hours contracts. Quite often when the Opposition talk about zero-hours contracts, the Government think that the work exploitative automatically gets inserted into the phrase. That is why we stopped exclusivity clauses in zero-hours contracts way back when we were in government. Nobody should be exploited, but that does not mean that there cannot be a job that works for the employer and employee and gives flexibility in the economy.
Jayne Kirkham
The right hon. Gentleman is being generous. Of course there are zero-hours contracts that work for some people and not for others. For example, if it is the choice of the employee, then it is fair enough, but if someone’s work is cancelled when they are on their way in, that is not fair. The 2025 Act still allows people who are employed to say, “No, I do not want those average hours. I am happy to work on a zero-hours contract.” That optionality is still there.
Good employers, who want to keep their employees, do not do stupid things that upset their employees. Good employers will always want to keep good people in order to build their business.
Well, I will help him with that. That principle is why, back in 1999—under a Labour Government, as he will recall—when the original minimum wage came in, the Low Pay Commission specified that there should be a different rate for young people. That was for two reasons. The first reason was because of the work experience effect: there is a difference in how employers view people with a few years’ work experience and others without that experience, and if those rates were exactly the same, youth unemployment would inevitably rise. The second reason was to recognise that very many of those younger workers are in some form of education or training at the same time. We all want people to be properly rewarded for the work they do. The best thing is to be well rewarded in a job, but the worst thing of all is not to have a hope of getting into a job that is well rewarded.
We have talked a bit about the national living wage. Of course, we all want the national living wage to keep going up. That is why we brought it in, by the way, in 2015, with the explicit intention that it would keep rising until it was further up the income distribution. However, we do have to acknowledge the reality. As I say, I think that most people present know that there is a difference by age and that it is there for a reason.
Jayne Kirkham
It is still the case that there is that differential, is it not? There is still about a £2 difference between under-21s and over-21s, so it is not actually having the impact that the right hon. Gentleman suggests it should. If there is still that differential, why is there that problem at the moment, when employers are not paying national insurance contributions for under-21s either? Considering that the differential still exists, why does the problem exist?
I genuinely do not know quite how to respond to that. The differential has come down. It is due to come down further—it is due to be eliminated. There will still be the difference in national insurance contributions. Nobody is at this time envisaging there being no difference in employment costs at all. The reason that I used a hypothetical case and established that principle was to demonstrate why there is a wage effect on youth unemployment.
I was going to talk about the overnight visitor levy, on which I have strong views—I think it will be bad for our local economies, bad for international inbound tourism and bad for places that rely on domestic tourism and seaside towns in particular—but in the interests of time, Madam Deputy Speaker, I will not.
I will just end by saying that I would have thought that the Labour party would like to break away from that cliché—the fact that every Labour Government ever to exist have left office with unemployment higher than when they came in. If I was a Labour Member, I would want to say, “With our enormous majority, and perhaps with the new Prime Minister we are about to have, this could be our chance to break away from that, so that nobody can ever say that to us again. We are, after all, Labour—we are supposed to be the party of work. Let us devote all our energies to maximising employment, and particularly to maximising the opportunities for young people coming into the labour market.” It is not too late for them to take that approach.
I just want to add something that we have not really talked about today—in fact, something we hardly ever talk about—in the context of these changes. We need to consider the number of people who will be forced into self-employment as a result of the changes in the Employment Rights Act. I strongly encourage the Government to change course.
Jonathan Davies
I spent most of the hon. Gentleman’s intervention trying to find out what is going on in Clacton, but perhaps the Minister heard what he said and will furnish him with a response in his summing up.
The Government are doing a great many good things to support young people. There is more to do, but I will touch on some of the things we are doing. We have an unemployment rate of 4.9%. That is far too high, but we are outperforming many other major economies, including Canada and the EU. I particularly welcome the youth guarantee, the growth and skills levy and the other levers that we are introducing to reduce business costs, including on energy. We are expanding access to finance through the British Business Bank, and we are reducing red tape and licensing costs.
On summer jobs, it is particularly important to highlight our support for hospitality, including cutting business rates for pubs and live music venues by 15%, which will be followed by a two-year freeze. We are also increasing the hospitality support fund to £10 million, which will really help those sectors.
We have heard a little bit from the Opposition Benches today about wage increases and national insurance. On wage increases, when I go to food banks I often meet young people who are in work but tell me that they are still not making ends meet, and that point comes through from the survey that I did. That really is a tragedy. While I acknowledge the concerns that businesses have raised with me and that the Opposition have raised today, I do welcome the wage increases. We have to deal with this cost of living crisis. Young people should not be working as many hours as they can yet still not able to get by.
The point about national insurance is quite interesting. The decision to increase employer national insurance was a difficult one. I would rather we had not had to do make that decision, but we did. Public services were failing so badly that that in itself was a brake on the economy. I note that the previous Government also effectively tried to increase national insurance by 1.25% in 2021. That was called the health and social care levy, but they did row back on it.
The reality is that we have a long-term problem with public services, and it is holding back people’s lives and the economy. We have grasped the nettle on that, but I hope that sometime later in this Parliament we can revisit the issue. We stood by businesses in covid, and we are asking them to stand with us now as we rebuild public services. As the economy continues to grow, I hope that that option is on the table for the Government.
There are a few things that I would like the Minister to bear in mind going forward. I very much welcome the Great British summer savings scheme, which offers VAT cuts to the visitor economy sector, which is a very important employer of young people, including in Derbyshire. Once that scheme ends, I would be grateful if a review could be undertaken to see how much economic growth and how many jobs it generated. My long-term aspiration is for us to be in a place where we can offer a VAT cut, particularly for the hospitality sector.
After the financial crisis in 2008, the previous Labour Government cut VAT to 15%—it was subsequently put up to 20% when the Conservatives came in—and that was a real shot in the arm for the economy. If the Great British summer savings scheme shows evidence of being a real driver for economic growth, particularly in the important visitor economy sector that employs a lot of young people, we should see whether we can harness that and offer a different rate of VAT for the visitor economy and hospitality sectors. I believe that that would be good for the economy. It would also be good for our high streets and people’s sense of place and wellbeing.
Jayne Kirkham
That is the important thing. The summer savings scheme could be really useful. I think the onus is on all of us as Members of Parliament to get out and spread the message to businesses across our high streets that they should make the most of it so that we can see how well it works.
(3 weeks, 4 days ago)
Commons ChamberI can assure the hon. Gentleman that we are having conversations with DEFRA over these issues. We want to ensure that regulation is right. We need to incentivise the right behaviour and the circular economy, but we need to do so in a responsible way. We are always engaged with the sectors that are impacted, not just because of regulatory measures but because of external measures facing our economy.
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
The Government’s critical minerals strategy was a fantastic achievement, with clear targets, and it will kick-start a nascent industry. To take the next step to get the sector up on its feet and to a more competitive place, will the Minister support a Government price certainty mechanism for lithium?
That is one of the issues that we need to look at not just in the UK but with our international allies. We have got ourselves in a ludicrous position where critical minerals are available all over the world, but 85% of them are only processed in one country. We need to ensure that we have resilience in this area, and it is precisely the kind of issue that we need to look at to protect jobs in my hon. Friend’s constituency.
(1 month, 3 weeks ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Joe Robertson
I agree with the hon. Member that there needs to be long-term support, but also immediate relief. Again, he pre-empts some of the points I am going to make—I realise that my introduction was perhaps a bit longer than it should have been, considering that other Members are making all the excellent points that I am about to.
Since the 2024 Budget, the hospitality industry has lost more than 100,000 jobs. Between January and March of this year alone, the equivalent of three hospitality businesses closed every single day. The sector was hit with a £3.4 billion annual cost increase from that Budget. The 2025 Budget added more through business rate changes and wage increases. It is therefore hardly a surprise that we have seen job losses on this scale.
The Government are refusing to take responsibility. How can they do the right thing now if they do not recognise the harm that is being caused and felt from their own tax policies? Some of the most significant damage done by the Government is to the employment opportunities for young people. Youth unemployment is up; indeed, it is now higher than in the period coming out of covid. The Government’s hike in national insurance, extending it to more part-time work, and changes to the minimum wage that reduce the competitive advantage of employing young people are also major drivers of that unemployment. It is not just theory; we are seeing the real-world consequences in the data and in our communities.
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
I thank the hon. Member for securing this important debate. On support for young people, I will be talking to the Skills Minister soon about what the youth guarantee scheme could do in hospitality. Does the hon. Member agree that the two would be a perfect match?
Joe Robertson
I would urge the hon. Member to do all that she can to encourage her ministerial colleagues to improve the lot for young people. The fact remains that youth unemployment is going up and coastal communities are suffering. I would welcome any intervention that the hon. Member can bring about through her powers of persuasion.
In coastal communities, hospitality provides flexible, accessible, seasonal work that simply does not exist in the same volume anywhere else in the local economy. More than half the sector’s workforce is part time. For many young people—students, carers, people managing health conditions—that flexibility is what makes work possible. Job postings for temporary hospitality work were down by 25% in 2025, year on year. For many people, summer jobs are their first job. They are jobs that give a young person in Ryde, Shanklin or Ventnor their first pay slip and their first employer reference.
There are 67 pubs in Isle of Wight East, four breweries, and 1,200 jobs in the sector, generating £40 million for the local economy. Nationally, the pub and brewing sector contributes £34 billion and generates £17 billion in tax. Those are not small numbers. Of course, pubs are about more than just pints. A third of drinks sold in hospitality are spirits, such as Mermaid Gin on the Isle of Wight. When distillers suffer, pubs suffer and vice versa.
The Bugle Inn in Brading sadly closed its doors for the final time just four days ago. Jasmine and Daniel were clear about the reasons why:
“We have become another victim of the current pub crisis. In the past 2 years, many of the taxes we pay to the Government have increased drastically, our gas and electricity has increased by almost double, the cost of ingredients has increased, some by as much as quadruple, wages have risen rapidly and business rates have increased.”
They go on to say:
“We have made the decision to leave the industry that we love and close the Bugle down.”
The Pointer Inn, in Newchurch, has taken aim at the Chancellor herself:
“The absolute legend Rachel Reeves”.
It also took aim at her “nice pub tax”, adding an AI image of what the pub might look like shortly. Then there is the Hare and Hounds, which is located just outside Newport and dates back to the 1730s, but has now been shut.
I turn to the holiday tax, or the visitor levy, which has already been referred to. This is an overnight visitor levy, which is the wrong policy at the wrong time. Coastal tourism visits have already fallen by 10% since April last year. Analysis by Oxford Economics suggests that if a 5% levy of the kind operating in Edinburgh was fully introduced by 2030, we would see a £1.8 billion reduction in tourism spending, 33,000 jobs being lost and 9 million fewer nights being spent in accommodation. These are not small margins. In coastal communities, where summer trading keeps businesses viable through the winter, the damage would be concentrated and severe.
(2 months ago)
Commons Chamber
Kate Dearden
Boosting opportunity and tackling youth unemployment in every area remains a priority, and helping young people into work is crucial for that. We know that some people value that flexibility, which is why I will be considering that as part of the regulations.
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
Cornwall has so much to offer the UK—critical minerals, floating offshore wind in the Celtic sea, defence, geothermal energy—but infrastructure, particularly ports and rail, will be critical to enable growth. Cornwall is a perfect place to designate as an industrial strategy zone. Will the Minister agree to meet me and Cornish colleagues to discuss this?
The Parliamentary Under-Secretary of State for Business and Trade (Chris McDonald)
My hon. Friend is absolutely right about the potential in Cornwall, which is a unique and distinctive part of the country. It powered our industrial past and it will power our industrial future. I am happy to meet her and colleagues to talk more about the opportunities in Cornwall.
(3 months, 1 week ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I fully agree with the sentiments outlined by my hon. Friend.
I will move on to a summary of the legal rights denied to people classified as workers under the Trade Union and Labour Relations (Consolidation) Act 1992 and the Employment Rights Act 1996: protection against unfair dismissal after six months; the right to guaranteed hours; the right to maternity pay; the right to paternity leave; protection against unfair redundancy selection; the right to redundancy pay; access to statutory union recognition procedures; and the ability to request family-friendly flexible hours. Those are the rights that are being denied to workers at this moment in time.
What are we really asking for? There must be a renewed push for the full implementation of Labour’s manifesto commitment to merge the employed and worker tiers into one single legal category of employee with full legal employment rights. We need an end to the bogus self-employment tactics that unscrupulous employers deploy. The law should not recognise the legitimacy of any substitution clause.
The best means of achieving a clear distinction between a new employee with single status and those who are actually self-employed is to use the formula proposed in Lord Hendy’s single status Bill of 2023-24, which was introduced in the Lords. That would not only merge employees and workers into a single status of employee; legal employment rights would also end the bogus self-employment tactics that employers use to deny people the higher employee status. Under Lord Hendy’s Bill, a person would be deemed to be self-employed only if there was clear evidence that he or she was genuinely operating a business on his or her own account. Evidence such as business accounts, advertising and the number of clients or customers would be needed to prove true engagement for services by a self-employed person.
I thank my hon. Friend the Member for Ellesmere Port and Bromborough (Justin Madders) for bringing this timely debate to the House. I also thank the Minister for her sterling work on the employment Bill. It was an excellent Bill. It could be a lot better; it could be a lot stronger—to be honest, we need an employment Bill 2.
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
Does my hon. Friend agree that one of the arguments against single worker status is that of flexibility, particularly for young people who want to work seasonally, as happens in my constituency in Cornwall? I therefore ask the Minister to confirm that that option still remains open if a person remains an employee under our new Employment Rights Act. There is misunderstanding about that, and it is really important that people realise that there is the option under the Act to retain flexibility without the need for self-employment status.
(4 months, 2 weeks ago)
Commons Chamber
Blair McDougall
I discussed the prioritisation of parcels with Ofcom yesterday. It had previously investigated the matter, and it is fair to say that it has heard the widespread concern around the House. If Ofcom continues to be concerned, it will not hesitate to investigate again.
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
In the face of global uncertainty, the Government are acting with boldness, creativity and urgency to back British business. We will soon publish our steel strategy to secure an internationally competitive, investible and sustainable future for British-made steel. We are making highly significant interventions on energy. The supercharger discount will increase next month, further cutting costs for around 500 of the most energy-intensive businesses. The British industrial competitiveness scheme will slash electricity bills for 7,000 businesses by up to 25% from 2027.
We are helping businesses to scale and grow, with the British Business Bank making the largest ever equity investments and UK Export Finance working with banks to generate £11 billion-worth of support for small businesses to export. We are opening new markets, with the India free trade arrangement now through both Houses of Parliament. Just last week, I was in Brussels to sign a new competition co-operation agreement. I expect my Department to match the dynamism of the best of British entrepreneurs, and I am proud to report that with this Labour Government, it is.
Jayne Kirkham
Soul Farm, which delivers organic and sustainable food, is an example of a co-operative business in my constituency that benefits its community. I also have the “Save the Stag” campaign in Ponsanooth, which is trying to take over and run the local pub, as has already been done at the Ship Inn at Portloe. Setting up or transitioning to a co-op model can be difficult. Will the Minister update me on what support the Government are providing to help new co-ops to start up and existing businesses to transition to employee ownership?
I am grateful for my hon. Friend’s important question. She will know that our manifesto committed to double the size of the co-op and mutual sector, and we are well on the way to doing so. She will also know that a consultation on this issue closed very recently. We are analysing the results and we will make further statements very soon.
(5 months, 4 weeks ago)
Commons Chamber
Blair McDougall
I had a fantastic family holiday in Northern Ireland, driven by my son’s obsession with the Titanic—I had a very moving visit there. I have met my opposite number with responsibility for small businesses in Northern Ireland, and I am happy to have the discussion that the hon. Member suggests.
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
The UK is the fourth largest exporter in the world and the second largest in services, but we want to do even better, which is why we are pushing forward our new trade deals to cut barriers for UK businesses, strengthening UK Export Finance, providing tailored market advice and targeting resources so that businesses can take advantage of those deals.
Jayne Kirkham
I am grateful to the Minister for last week meeting me and a representative of Watson-Marlow, a business in my constituency, to discuss barriers to export. Many businesses I have spoken to have been frustrated about the difficulty of moving people, goods and equipment to Europe post Brexit, and they face significant additional costs and admin. Fugro and Pendennis yachts have raised with me issues they have experienced with securing visas for their staff on short-term offshore projects. What steps can the Minister take with colleagues at the Home Office to ensure that some of those barriers are reduced?
First, it was great that my hon. Friend and other MPs brought individual constituency businesses along, because one of the things I want to do as Minister for Trade is try to persuade all 650 colleagues to come along with individual businesses so we can work out where there are barriers to export and try to encourage export growth. If we could release all the MPs, who probably know the businesses in their constituencies far better than the Department does, we would drive forward export growth. She is absolutely right that there are issues with visas and business mobility that we need to address. It is one of the things that the Home Office and the Department are discussing with our European allies. We need to do better on this, and we also need to get to a place where we have mutual recognition of professional qualifications so that people can simply transact their business more effectively.
The Parliamentary Under-Secretary of State for Business and Trade (Blair McDougall)
I am very happy to do so. The right hon. Member will understand that Royal Mail is a private company regulated by Ofcom, but it is also a critical part of our national economic and social infrastructure. It is not acceptable if people are not getting their post, which is a message that I will deliver to Royal Mail in person next week.
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
The Minister mentioned the music venue levy earlier. He knows that my constituency has amazing music venues, so when will the first payment from that levy be made to those smaller venues?
I am afraid that I have changed job since I was pushing that levy very hard. The intention was for those payments to be happening fairly soon. I will ensure that the Minister for Creative Industries, Media and Arts responds directly to my hon. Friend. The levy is a really important opportunity. Every time someone goes to a big arena gig, there should be a £1 levy on their ticket. I urge all promoters, artists and concert arrangers to ensure that that money gets to small music venues.
(7 months, 2 weeks ago)
Commons Chamber
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
(7 months, 2 weeks ago)
Commons Chamber
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
Does the Minister agree that part of the problem was caused by the Conservatives, who did not welcome the introduction of the minimum wage in 1998, saying that it would destroy businesses, and later when in government split the minimum wage so that people over 25 got more than people under 25, which is causing the inequality that we are having to deal with now?
Blair McDougall
My hon. Friend is absolutely right. I recall working in this place as a younger man when we had all-night sittings, as the Conservatives united with those in the other place to try to stop our efforts to make work pay for people—and here we are again, a quarter of a century later.
I listened carefully to the hon. Gentleman’s speech yesterday, which I thought he delivered very well. I am grateful to him for putting the points against our Bill. He is absolutely right: it was 100 on each side. However, it passed with the help of Madam Deputy Speaker and it has progressed to Second Reading. I take his point, but I say to him: how does he know? If there is a political movement for change in this country, a political will towards further integration with the European Union and a political will in favour of a customs union—
I will finish this point, if I may. I think the EU would welcome that and would be very keen to have a conversation on that basis.
I will give way to the hon. Member for Truro and Falmouth (Jayne Kirkham) and then I will come back to the hon. Gentleman.
Jayne Kirkham
I thank the hon. Member for giving way. Does she not agree that the trade agreement that was signed earlier this year and the sanitary and phytosanitary agreement, which the EU now has a mandate to discuss and which will hopefully be through by 2027, will make a massive difference to a lot of the exporting that is done? We are getting there; it takes time, but we are getting there.
That approach is very piecemeal and it is taking time. If we had a more wholehearted approach to a customs union, we would be able to unlock all sorts of benefits that are not possible with a piecemeal approach.
(8 months ago)
Commons Chamber
Chris McDonald
I thank the hon. Lady for her words on the strategy. Words are one thing, but implementation is another. This Government are now focused on how we implement the strategy and ensure that we attract investment. The single biggest difference with this Government is that we are putting real money behind the strategy; as I mentioned, we are putting in an additional £50 million, bringing the total funding to £200 million. Through both the British Business Bank and the National Wealth Fund, there are opportunities for more significant investment to ensure that we have UK-headquartered, UK-owned and UK-listed industrial champions in this area. We are not agnostic about industry and manufacturing, and we want to ensure that the communities that host these businesses benefit from that and that the UK economy benefits as a whole.
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
I am so pleased that the riches beneath our feet in Cornwall will finally be taken out and used in a sustainable way that benefits the people of Cornwall. I am so pleased to see this strategy, as are the people of Cornwall. The Minister is coming to Cornwall and will visit the port in Falmouth, which I hope will benefit from an expansion project. I am also hopeful to see the freight railway restored, which could be used in future to move critical minerals and supplies around in a more sustainable way and take lorries off the road. Will the Minister consider this tomorrow when he comes to Cornwall and as part of the strategy going forward?
Chris McDonald
I thank my hon. Friend for the significant amount of work she has done and her engagement with me during the preparation of this strategy. She is right to highlight the opportunities at the port of Falmouth. Those opportunities start with critical minerals and perhaps also renewable energy. I intend to visit the port of Falmouth tomorrow and would be pleased to hear more about those opportunities when I am there.