Oral Answers to Questions

Debate between Kate Dearden and Nusrat Ghani

Thursday 29th January 2026 Commons Chamber

[Kate Dearden]

We are introducing new, permanently lower tax rates for eligible retail, hospitality and leisure properties worth nearly £1 billion per year, which will benefit over 750,000 properties. Next year, the rate for small RHL properties will be the lowest since business rates were introduced more than 30 years ago. This is paid for through higher rates on the 1% most expensive properties, which includes many large distribution warehouses such as those used by online giants—that high value multiplier is 33% more than the multiplier for small RHL properties. That is what we committed to in our manifesto. Creating a new, sustainable system with permanently lower multipliers for eligible retail, hospitality and leisure properties will make a massive difference for people. We will be publishing a call for evidence in September, exploring potential longer-term reforms, and I urge my hon. Friend to get involved in that call for evidence and to share it, too.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the shadow Secretary of State.

[Andrew Griffith (Arundel and South Downs) (Con)]

The Minister has just heard from across the House continuing pleas to support the hospitality industry. It is always a good day when the Government U-turn and provide more support for pubs, so we welcome that. However, unless the Minister can explain to us when a pub becomes a gastropub, when a gastropub becomes a restaurant, and when a restaurant with rooms becomes a hotel and descends down that wormhole, will she make representations to the Chancellor to extend the same measures for pubs that she U-turned on this week across the whole retail, hospitality and leisure sector? The truth of the matter is that 90% of that sector will not benefit from this week’s U-turn.

[Kate Dearden]

Good morning to the shadow Secretary of State. I am sure he had a stiff drink after his performance at Prime Minister’s questions yesterday.

All pubs and live music venues that meet the definition set out in the guidance qualify for the support, and he will be able to see that clearly online. We will be working with local authorities to ensure that the definition includes establishments open to wide sections of local communities. I have already discussed valuations for pubs, how we take turnover into account and how we will work closely with the wider sector on valuations going forward. This is a Government who are working closely with the sector and are committed to listening. That is being a responsible Government, and we are doing the right thing.

[Madam Deputy Speaker]

I call the Liberal Democrat spokesperson.

[Sarah Olney (Richmond Park) (LD)]

The heavy burden of Labour’s national insurance contributions rise, compounded by high energy costs and the business rates increase, has raised alarm about the affordability of hospitality businesses’ monthly employment costs. Some 84,000 jobs in the hospitality sector alone have been lost since the NICs rise was introduced, and that is particularly damaging to young people, many of whom have traditionally found their first jobs in the hospitality sector, including the Minister, as she just said at the Dispatch Box. With the sector struggling to employ new workers, damage is being done to the career prospects of our young people, and it will be detrimental to the broader economy in the long term. Business confidence is down, job vacancies are down and unemployment is up, so what steps will the Department take to tackle high unemployment costs, support businesses and bring down those increasingly high levels of unemployment?

--- Later in debate ---

[Kate Dearden]

I thank my hon. Friend for his really important question; he is absolutely right to raise this issue. Reform voted against the Employment Rights Act at every single opportunity. The hon. Member for Clacton (Nigel Farage) would row back on the protections that we have given to 18 million workers across the country, including the vital day one paternity leave and parental leave, statutory sick pay for the lowest paid, protections for pregnant workers, increased protection from unfair dismissal, an end to exploitative zero-hours contracts, a new right to bereavement leave and so much more. Reform is simply not the party for working people; Labour is. Reform Members voted against the Act, and their plans would threaten employment up and down the country.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the shadow Secretary of State.

[Andrew Griffith (Arundel and South Downs) (Con)]

Of course, it is not just Bracknell, and one day those on the Labour Benches will understand that there are no workers’ rights if people have no work. Youth unemployment is up significantly. That is a tragedy that everybody should be ashamed of, and it is going up on Labour’s watch. Small businesses, which provide so many jobs, are very worried about the administrative burden of trade union access. We are talking about the very smallest businesses—pubs, restaurants, garden centres and small catering businesses. They are the backbone of our communities. As the Minister tries to implement the Employment Rights Act, will she consider lifting the threshold for the trade union access agreements to a headcount of 250—that is recognised elsewhere in law as a threshold—which would protect our very smallest businesses from that administrative burden?

Employment Rights Bill

Debate between Kate Dearden and Nusrat Ghani

Consideration of Lords message
Monday 8th December 2025 Commons Chamber

[The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)]

I beg to move,

That this House insists on its disagreement with the Lords in their amendment 1B but proposes amendments (a) and (b) to the Bill in lieu of that amendment.

[Madam Deputy Speaker]

With this it will be convenient to consider the following:

That this House insists on its disagreement with the Lords in their amendments 23 and 106 to 120, does not insist on its amendments 120C, 120D and 120E, and proposes amendments (a) to (f) to the Bill in lieu of Lords amendments 23 and 106 to 120.

That this House insists on its disagreement with the Lords in their amendments 23 and 106 to 120.

That this House insists on its disagreement with the Lords in their amendment 48B but proposes amendments (a) and (b) to the Bill in lieu of that amendment.

That this House does not insist on its amendment 72C in lieu of Lords amendments 61 and 72, but disagrees with the Lords in their amendments 72D to 72H in lieu and proposes further amendments (a) and (b) in lieu of the Lords amendments.

That this House insists on its disagreement with the Lords in their amendment 62, but does not insist on its amendment 62C in lieu and proposes further amendment (a) to the Bill in lieu of the Lords amendment.

[Kate Dearden]

I am pleased to return to the Employment Rights Bill for the consideration of Lords amendments for a third time.

The Government’s plan to make work pay, on which we were elected and in which we committed to deliver the Employment Rights Bill, will bring employment rights legislation into the 21st century, extending the protections that many British companies already offer to their staff to all. By doing so, we will endeavour to end the unfair market competition in which some firms seek to beat their competitors not by better quality or increased value, but by cutting the pay and conditions of their workforce. That is why this Bill is truly pro-business and pro-worker, pro-growth and pro-competition, and contributes to the creation of a fair and flexible labour market.

This Bill is a win-win for employers, employees and a more competitive British economy. By delivering this change together, we will back businesses that do the right thing while giving hard-working people the job security and opportunities that they deserve. That is why we must press ahead with delivery. Too many workers are waiting too long to feel the benefits of these reforms, and too many businesses face the uncertainty of when this Bill will become law and want clarity on its implementation. The Government are seeking the support of this House so that we can secure Royal Assent and finally be able to move towards implementing change.

First, I will speak to the Government amendments in lieu, which relate to unfair dismissal. In late November, I convened a series of constructive conversations between trade unions and business representatives, and I am extremely grateful for the positive and productive contribution of both sides of industry to that dialogue. It is a testimony to their leadership, and I thank them for it.

I am pleased to report that we have come to a workable agreement with trade unions and business representatives on the unfair dismissal provisions. The Government’s amendments in lieu will reduce the qualifying period for unfair dismissal from 24 months to six months, while maintaining existing day one protections against discrimination and automatically unfair grounds for dismissal. The implementation road map sets out that the changes related to unfair dismissal will come into force in 2027. That is the timeline that businesses have been working towards.

It is also important to limit the time that employees must wait for their rights to be strengthened while implementing changes in a way that is manageable for business. That is why I am pleased to tell the House that the six-month qualifying period for unfair dismissal protections will be brought in from 1 January 2027.