John Glen
Main Page: John Glen (Conservative - Salisbury)Department Debates - View all John Glen's debates with the Department for Business and Trade
(1 month ago)
Commons ChamberI want to be absolutely clear. I am not trying to suggest that everything is perfect in the nation and that we are in a version of nirvana; I am not saying that at all. I have friends and relatives who work in the hospitality industry, and I know that these last few years—not just the last two, but the last 15—have been really tough for hospitality. I think we lost something like 6,800 pubs from 2010 to 2024, and we have been losing more since then.
I am still trying to answer the hon. Member for Angus and Perthshire Glens (Dave Doogan), if the right hon. Gentleman will allow me.
We have faced significant headwinds this year. We are keen to pursue the work that Alan Milburn has done, and, if I am allowed, I will come to some of the ways in which we are trying to address the specific problem we have.
I recognise that the Minister wants to come to what the Government are going to do, but does he not accept that the decisions already made in the last two years—with respect to the price of employment and the national living wage, the cost of employment with regard to legislation, and business rates—have depressed the appetite of many small businesses to employ more people? Regardless of the strategic changes around the Milburn review, which I accept need to be evidence based, those decisions have had a chilling effect on the capacity of the economy to employ young people.
Let me say two things. On the national living wage, it must surely be wrong that somebody who works 40 hours a week cannot afford to pay their bills at the end of the week. If they have been a diligent worker, played by the rules and done everything properly, but they still cannot afford to put food on the table for themselves and their children, pay the electricity bill and all the rest of it, that must surely be wrong. That is why we introduced the whole idea of a minimum wage in the first place, and then the national living wage.
This issue applies only to young people older than school age—those aged 18 and above. I know that there are some people who have an impression that all those young people are living at home and do not need to earn in the same way as others, but that is simply not true for lots of 19, 20 and 21-year-olds in my constituency. They are earning their living, and they need to pay the bills, just like anybody else. There is a difficult balance to be struck there.
Similarly, I would argue, there is a balancing act around national insurance contributions. As the right hon. Member for Salisbury (John Glen) will know, we have tried to ensure that the sectors of the economy that are smaller and have less ability to absorb the additional costs do not have to meet them. I think something like 50% of businesses do not have to pay any more at all—I will correct the record if I have got that number wrong. In the end, I do not hear people frequently calling for us to slash expenditure on defence, education, the health service and so on. I sometimes want to say to hon. Members that it is all very well to denounce the national insurance contributions increase, but they would have to find the money from other budgets. It is all very well to say, “Let’s cut it from welfare,” but a lot of welfare projects are designed to make sure that people have an opportunity to put food on the table and pay the bills.
Mr Peter Bedford (Mid Leicestershire) (Con)
As I am an accountant, it will come as no surprise to Members from across the House that I take a keen interest in numbers. Unfortunately for this Government, the numbers do not make for pleasant reading.
Labour Members have been busy crowning their messiah from the north—a coronation conducted with little scrutiny and even less debate—but I wonder whether they are aware that youth unemployment now stands at 16.2%, which is close to its highest level since 2015, and already above the pandemic peak. I wonder whether they know that 735,000 young people are out of work—up by 109,000 on the year. I wonder too whether they know that, for the first time since 2013, the number of young people not in education, employment or training has passed 1 million. Whatever is happening in the labour market is landing hardest, and first, on our young people. It is the plain, measurable consequence of decisions taken by this Government, including the introduction of higher national insurance contributions.
As we have heard today, the Employment Rights Act has added costs and burdens to employers large and small. I ask Labour Members to think like an employer for a moment—not a large firm with a human resources department, but the owner of a farm, a hotel or a shop on the high street, who has to decide whether to take someone on for the first time, perhaps over the summer. Under the Act, that decision now carries real legal risk within six months, rather than two years, so the rational choice is perhaps not to take the risk at all. The farm does not hire an extra hand for the harvest, the guesthouse does not take on extra staff for the holiday season, and the high-street shop does not offer the Saturday job that may lead to a summer job and permanent employment. Let us be honest about the cost: by the Government’s top-end estimate, the Act lands over £1 billion on employers. Small and medium-sized enterprises are the backbone of our economy and a key gateway into work for young people, yet the uncertainty has left too many high-street businesses reluctant to invest, expand or hire.
These are not merely statistics to be traded across the House. Behind every percentage point and every headline figure is a young person searching for a first job, eager to build skills, gain experience and achieve independence. Too many are growing up believing that hard work is no longer rewarded, and that aspiration is no longer valued.
My hon. Friend is making an excellent speech. In responding to me, the Minister pointed out that it was necessary to increase the national living wage so that everyone had enough money, which is obviously a reasonable point to make. Does my hon. Friend feel that the pace at which that was done—it increased faster than the rate of inflation—has caused a situation in which some young people will no longer have the jobs that they could have otherwise expected?
Mr Bedford
I totally agree with my right hon. Friend. I think the pace at which this was brought in has had a massive impact on businesses, particularly smaller businesses, and their ability to adapt to a changing labour market.