Deregulation Bill

Jim Cunningham Excerpts

Wednesday 14th May 2014 Commons Chamber

[Toby Perkins]

My hon. Friend makes an important contribution and he is right. The issue of bogus self-employment, and the broader issue of the vision this Government have for our economy, is working very badly for people in our constituencies and working quite well for a small number at the top. It was ever thus; this is what the Conservative party was set up to do. It was set up to ensure that the rights of a privileged few were protected and to try to convince enough of the lower orders to buy into it in the meantime. That is why the Conservatives did not want the lower orders to have the vote for 100-odd years. We all know where they are coming from, and no doubt if they could get rid of the lower orders having the vote now, they would do it again.

[Mr Jim Cunningham (Coventry South) (Lab)]

Surely one of the tests for the way this Government handle the economy will come very shortly when interest rates go up and the small businesses and entrepreneurs that they boast about cannot get loans to facilitate their business transactions?

[Toby Perkins]

That is another important dimension. We are in danger of straying slightly from our amendment, but it is important that we see this amendment in the context of the economy.

My hon. Friend the Member for Derby North (Chris Williamson) also made an important point about the impact of all of this on our economy. Not only does it undermine employment rights and leave his constituents and mine worse off, but it also hits taxpayers in the pocket, because according to the Treasury’s own estimate, around 300,000 workers in the construction sector alone are effectively in bogus self-employment. That costs the Treasury more than £380 million every year so there is less money going into our public services and into the public coffers because of this issue. This is far from being a construction-site problem, however. That has happened over many years, but in a whole variety of areas—care workers, as spoken about earlier, bookkeepers, sales agents, and from the factory floor to the shop floor—staff who look to all of us to be employers are legally self-employed. While bogus self-employment has previously been predominantly a tax and rights issue, an exemption in respect of health and safety only increases the incentive for employers to pursue this route as a model of recruitment, reducing safety in the workplace, making it an optional extra rather than a hard-won right.

That changing environment places huge responsibilities on us as law-makers, and they must not be overlooked. Labour in government maintained a flexible workplace, not always, I have to say, to the delight of colleagues across the movement who would have liked further protection. We recognised there was a balance to be struck, however, and we still do, but we did that in a way that aimed to ensure that protection against the exploitation of individuals was not sacrificed in exchange. If these Tories really were the workers’ party, they would understand that a flexible workplace that works against the public interest is bad for Britain and bad for business, too.

Returning to this new clause, no self-employed person has ever been prosecuted or threatened with prosecution only for risking their own health. Given that the Bill’s intention is that only people who pose no risk to anybody will be exempt, there will be no practical impact on businesses or individuals. The Health and Safety Executive consulted on Ofsted’s proposals in 2012 and the majority of those responding to the consultation opposed the idea. All in all, I and many other small business owners would recognise the picture painted by the Royal Society for the Prevention of Accidents, which has said that many low-risk, self-employed individuals are

“de facto, already exempt…They will never be routinely inspected. And they are not going to sue themselves if they have an accident!”

If there are no known cases of the self-employed suing themselves and no prosecutions that are being prevented, this is a solution in search of a problem to solve.

The problem it in fact attempts to solve is the perception that this Government have over-promised and under-delivered on regulation. Whenever we hear the Minister defend this, he does not have a lot to say about anyone who will positively benefit. What he says is that there will be a perception that there is less people have to do before they become self-employed. Well, he can say that to the carers, who are being told that they are now self-employed when looking after the old lady they have been looking after for the past 20 years. He should ask whether that removes a disincentive to them setting up a business. That is the reality of what is happening under this Government.