Budget Resolutions
Debate between Joshua Reynolds and Gregory Campbell(1 month, 2 weeks ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Gregory Campbell (East Londonderry) (DUP)
On the sectors that will benefit, does the Secretary of State agree that the hospitality sector would benefit more from some honesty and openness? The Government announced a 6% increase for people on the minimum wage, many of whom are employed in the private hospitality sector, but while our constituents will pay for that, the Treasury will benefit by hundreds of millions of pounds, because almost all those minimum wage earners will become taxpayers overnight.
Mr Reynolds
The hon. Gentleman should recognise that the Chancellor did not make an announcement on personal tax thresholds, which, for some Conservative Members, was unexpected and reflected the difficult inheritance of the new Government. Labour Members are proud of the minimum wage, now called the living wage, which has been one of the most successful policies in the history of this country—and even some Conservatives claim credit or support the measure as a policy innovation.
There is no doubt about the burden on the hospitality sector, because if the living wage goes up for people employed in it, that is a business cost. We have to acknowledge that. What those businesses fundamentally need are customers who have some spending power to use their disposable income in those places. The rise is not without benefit, but I recognise that it is painful.
The future for this country, however, cannot be as a low-wage, low-productivity economy that does not give people the living standards they want. I have been on television many times talking about the stagnant wages of the last Government. I want wages to be higher. The doubling of the employment allowance in the Budget recognises the burden on those types of businesses, which can now employ up to four people on the living wage without any national insurance liabilities at all. We have to have a system that accommodates those burdens, but fundamentally this Government are in favour of higher wages, and we are not going to pull away from that in any measure.