Oral Answers to Questions

Lindsay Hoyle Excerpts

Thursday 31st October 2024 Commons Chamber

[Gareth Thomas]

The hon. Gentleman is an assiduous champion for his constituency in this House. If he wants to bring his chamber of commerce to meet me to discuss issues in his constituency in more detail, I will happily make time to meet him and them.

[Mr Speaker]

We are 10 minutes gone and still on Question 1. We need to speed up a little bit. If the Minister could look at me, that would be helpful, so that we are going through the third person. I know that Mr Shannon is popular, but even so, it should go through me. I call the Liberal Democrat spokesperson.

[Clive Jones (Wokingham) (LD)]

In my constituency, the number of people shopping on our high streets has not returned to pre-covid levels, and we have lost anchor stores such as Marks & Spencer, and several banks. The Government urgently need to save our high streets, but the reduction in retail, hospitality and leisure business rates relief from 75% to 40% will come as bad news for thousands of businesses. When will the Government deliver a fundamental reform of business rates to save our high streets and end the penalising of productive investment?

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[Justin Madders]

I have to educate the hon. Member on what trade unions do. ASLEF is not a union in the adult social care sector, which is what we are talking about here. We want to work on a tripartite basis—business and workers, together with the Government—to get terms and conditions right. Given that we had the lowest increase in living standards on record under the Conservative Government, I would have thought that he would want to support that too.

[Mr Speaker]

I call the shadow Minister.

[Gareth Bacon (Orpington) (Con)]

The Government’s impact assessment for the adult social care sector confirmed that collective bargaining will be very costly for business. If pay awards match those of junior doctors, the cost of the increased wage bill will be £5.8 billion, driving up business rates, reducing employment or hours, and imposing further costs on business. Can the Minister confirm when further collective bargaining will be rolled out, to which sectors, and by how much those businesses can expect to be clobbered?

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[Sarah Jones]

The challenge we have is that we have inherited the worst living standards growth during a Parliament in modern history. We have inherited huge challenges that we have to overcome, but we are looking to the long-term with our industrial strategy—[Interruption.]

[Mr Speaker]

Order. I do not need any more. Do we understand each other?

[Sarah Jones]

I do not know whether the hon. Member for Mid Buckinghamshire (Greg Smith) has been paying attention, but we are developing a steel strategy, which the previous Government failed to do, with £2.5 billion of funding. We put a boost of £2 billion into our car industry only yesterday in the Budget, alongside £1 billion for the automotive sector and money for life sciences. We are developing an industrial strategy for the long term for the first time and we will not follow the Conservative party, which let our industries suffer and get to the crisis point that we are now having to deal with.

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[Justin Madders]

Absolutely. We are determined to ensure that the particular sectors that my hon. Friend mentioned, where low pay and insecurity are rife, will benefit. We are working closely with businesses and employers across the spectrum to ensure that we get the proposals right because, for too long, insecurity and low pay have been rife in the UK economy. That has to change.

[Mr Speaker]

I call the shadow Minister.

[Jerome Mayhew (Broadland and Fakenham) (Con)]

After receiving millions from the trade union paymasters for its election, Labour is rewarding them with a package of 1970s, French-style workplace regulations, which will increase the cost of doing business in the UK to the tune of £5 billion a year, disproportionately falling on SMEs. That is before the £25 billion body blow to business delivered by the Chancellor yesterday in her anti-business Budget of broken promises. Does the Minister agree with the Office for Budget Responsibility that this Government’s decisions will make workers poorer, not richer, as increased employment taxes are passed on in lower wages, and that business investment will fall, not rise, as a direct result of this Government?

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[Gareth Thomas]

I am glad that the hon. Gentleman welcomes, I think, the measures we took in the Budget to raise employment allowance to help the very smallest firms. The Federation of Small Businesses said yesterday that it will be a very big help for small firms. On his wider point about the Budget, I gently say to him, as I am sure he knows only too well, that the economic inheritance the Government face has led to our having to make some very tough decisions. If he does not support the measures we have set out in the Budget, he needs to say how he would finance the extra investment in the NHS and in industry that we have set out.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Clive Jones (Wokingham) (LD)]

Wokingham has one of the highest rates of business survival when compared with the averages for the south-east and Berkshire, but yesterday’s announcement that the Government will raise employers’ national insurance throws that into doubt. The hike is, plain and simple, a tax on jobs that will deal a hammer blow to our small businesses. What will the Government do to mitigate the impact on small businesses in my constituency and across the country?

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[Sarah Jones]

The Government have no plans to undertake any trials on a four-day week for five days of pay. It is for employers and employees to reach agreements that fit their specific circumstances, but we want to get the balance right and make sure that we work with employers and employees. That is why the Employment Rights Bill will support both parties to reach agreements, where they are feasible.

[Mr Speaker]

I call the shadow Secretary of State.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

If Labour Members going back to their seat this weekend were thinking of going to a local pub for a pint and a chat with local farmers, I would think again. A publican with a mid-sized pub contacted me last night to say that because of yesterday’s changes, he would be £120,000 a year worse off, moving him from profit to loss. Labour said that its plans were fully costed and fully funded. Yesterday was a massive broken promise, was it not?

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[John Slinger (Rugby) (Lab)]

T4. We will take no lectures from the Conservative party about business. Plenty of us have experience of business, and I am one of them.Many high street businesses want to continue accepting cash. Just as importantly, so do many of my residents, particularly the elderly, disabled and vulnerable. I have spoken to the citizens advice bureau, which is hearing how concerned elderly residents are. What steps are the Government taking to ensure that the Post Office can better offer banking services on the high street to cater for the spenders and recipients of cash?

[Mr Speaker]

Order. These are topical questions, and they are meant to be short and punchy, not speeches. I am sure we can find time for an Adjournment debate for the hon. Gentleman.

[Gareth Thomas]

Given that almost 9,500 bank branches closed over the past 14 years, on the Conservative party’s watch, it has increasingly been left to the Post Office to provide vital banking services on the high street. I am sure the banking industry recognises its responsibility to work with us to ensure that sub-postmasters, whose pay has not increased for a decade, and the Post Office have what they need to help meet the critical cash and banking needs of all our constituents.

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[Justin Madders]

I gently point out to the hon. Lady that that represents a 0.4% increase on businesses’ total costs—a small price to pay for what the impact assessment says

“will strengthen working conditions for the lowest-paid and most vulnerable in the labour market, increasing fairness and equality across Britain. It will have significant positive impacts on workers who are trapped in insecure work, face discrimination, or suffer from unscrupulous employer behaviour like ‘fire and refire’ practices”.

If the hon. Lady does not support that, I am sure that she can talk to her constituents about why.

[Mr Speaker]

I call the Chair of the Business and Trade Committee.

[Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)]

On Tuesday, we will hear from Sir Alan Bates and other victims of the Horizon scandal, which continues to deepen. In September, we learned that there will be 100 more convictions quashed than we originally thought, and yesterday the bill for redress went up by half a billion pounds. Have all the victims now come forward, and are there any gaps left in the schemes for redress?

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[Gareth Thomas]

We have held discussions with a range of organisations on exactly that issue. I promised the hon. Gentleman earlier that I would meet him. If he wants to add that to the list of subjects that we talk about, I am happy for him to do so.

[Mr Speaker]

You do like Mr Shannon.

[Sally Jameson (Doncaster Central) (Lab/Co-op)]

In Doncaster, we have an innovative chamber of commerce and a fantastic set of local businesses. As well as the much-needed upgrade to workers’ rights, can the Minister update the House on what we are doing to kickstart a skills revolution for businesses in Doncaster and across the country? Can he also update the House on what he is doing to work across Departments to ensure that happens?

[Gareth Thomas]

As others across Whitehall have already set out, we have established Skills England and begun the process of reforming the apprenticeship levy to help businesses get better access to the skills they need.

[Mr Speaker]

I call Perran Moon for the final question.

[Perran Moon (Camborne and Redruth) (Lab)]

I have more than 30 years of business experience, so the Conservative party’s claims that there is no business experience on the Government Benches carries about as much weight as their industrial strategy. Can the Minister confirm that prior to the election there were extensive consultations with business experts, which I bet the Conservative party wished they had done over the past 14 years.