Corporate Liquidations

Lord Watts Excerpts

Tuesday 10th June 2025 Lords Chamber

[Lord Leong (Lab)]

The noble Lord makes an interesting observation that I do not share. First, there is no empirical evidence to suggest that NICs or business rates changes are primary reasons for any of these closures in the UK. I can give examples of businesses that are doing very well. Let us look at the hospitality business. I just looked at the latest results for JD Wetherspoon, which had revenue of £2.2 billion and EBITDA of £19.28 million. Stonegate, one of the largest pub companies in the UK, had revenue of £1.75 billion and EBITDA of £394 million. These are not companies that are in trouble. The picture is mixed. Yes, we have some contraction in the business sector, but businesses are thriving. Do not listen to me. Listen to people such as the president of Blackstone, who this week said:

“I would give the UK Government a lot of credit for embracing business”.

[Lord Watts (Lab)]

My Lords, is it not the case that under the last Government we nearly had bankruptcy in the economy, we had very low levels of growth and we had poverty wages? Is it not time for them to have a period of silence?

[Lord Leong (Lab)]

I thank the noble Lord for that question. All I can say is that in my long years of business I have learned one thing. Turnover is vanity; profit is sanity. If companies keep chasing turnover without the support of working capital, they will be on the first and pretty fast step to failure.