(4 days, 10 hours ago)
Commons ChamberI beg to move,
That this House regrets Government policies that are making seasonal, flexible and part-time work more difficult; notes that these policies particularly impact young people who are likely to start their first job in the hospitality, leisure and retail sectors, and specifically regrets Government policy to increase business rates on the hospitality, leisure and retail sectors; further regrets the Employment Rights Bill, with its provisions on guaranteed hours, and late notice cancellation of shifts, which will effectively destroy seasonal, flexible and part-time work; also regrets raising the rate of employer National Insurance contributions; regrets that 84,000 jobs in the hospitality sector have therefore been lost; and calls on the Government to cut public expenditure in order to abolish business rates for thousands of high street businesses, and not to proceed with the Employment Rights Bill so that it is easier for young people to get their first job, and easier for people to move from receiving welfare into work.
Last year’s Budget, with its increases in national insurance contributions, increases in business rates and inflation-busting pay rises, led to more than 180,000 job losses, because it increased the cost of labour. Most economists, and indeed most sensible people, understand that when you increase the price of something, there is less demand for it. By increasing the cost of jobs, Labour caused unemployment—yet this year, fully aware of rising unemployment, the Chancellor remarkably came back for more. Along with her colleagues in the Cabinet, she is imposing even more costs on business through the unemployment Bill, with more regulations and a whole new set of taxes, like the tourism tax. These decisions will do even more damage, snatching the opportunity of a first job, a seasonal job or an entire career from young people—and, indeed, people of all ages.
On the tourism tax, only a couple of months ago, in response to a question that I had posed, the then Minister for Creative Industries, Arts and Tourism, the hon. Member for Rhondda and Ogmore (Chris Bryant), said, “We think they have been taxed enough.” Is it a surprise to Opposition Members to see a tourism tax being brought forward?
Yes, indeed; my hon. Friend makes an important point. I was here when the Minister said that. He said that there were “no plans” to bring in a tax—although clearly there were, because a few weeks later, one was brought in—and that the sector had been “taxed enough”. Well, I agree with that Minister, and I therefore do not agree with the Chancellor.
Not content with the damage to businesses and jobs done in last year’s Budget, this year the Chancellor decided to go even further in her latest Budget, and went for the pockets of working people directly by making them pay more tax. That was a clear manifesto breach. Working people are paying the price for this Government’s inability to tackle the ballooning welfare bill, and to control the unions and their own Back Benchers. The Budget was not about the economy; it was all about internal party management. It is appalling that we have a Chancellor who appears to be willing to see thousands of our constituents lose their jobs, as long as she saves hers. In short, the Budget was a £26 billion tax hike on working people to pay for Labour's welfare spending. Last year’s Budget destroyed jobs; this latest one disincentivised work. It takes a special kind of incompetence to destabilise both the demand and the supply of labour simultaneously, but this Government have somehow managed to do just that.
The hon. Gentleman’s final words are key: how are public services paid for? The top 1% of income tax payers in this country pay 29% of all income tax. It is estimated that the Labour Government’s policies have led to 16,000 of the wealthiest people in this country leaving—equivalent to a third of a million to half a million average taxpayers. The burden, therefore, is spread on the others. Instead of demonising some of the wealthiest people, who make an incredible contribution to our public services, maybe the Government should thank them.
It is not just wealthy people who have left. We know from the Office for National Statistics data that 257,000 Brits have gone—it had been estimated at 70,000—of whom about two thirds to three quarters are under the age of 35. We are losing young people to the rest of the world because of the implications of not being able to get a job in this country.
Yet more common sense is coming from those on this side of the Chamber, and I agree with my hon. Friend. Of course, it is young people in particular who do not have confidence in this Government and are fleeing.
It is clear that I do not have particularly high regard for Labour’s economic competence, but even I did not expect the Government to be running out of money quite so quickly. I expected them to be bad, but I did not expect them to be this bad. It does not give me any political joy to say that, because my constituents and their constituents are paying the price for Labour’s incompetence through higher taxes and, in many cases, with their jobs and livelihoods. I genuinely wish that they were better at government, but that is wishful thinking, because here is another hard truth about Labour: despite the party’s name and the false advocacy for working people, every Labour Government since the second world war have left office with unemployment higher than when they started, leaving the Conservatives to clear up their mess.
We Conservatives know that the best thing we can do for working people, and to lift people out of poverty, is to help them get a job, and we have a far better record than Labour in doing that. Between 2010 and 2024, Conservative-led Governments oversaw the creation of 4 million jobs—an average of 800 a day. This Government are destroying jobs by the tune of hundreds per day.
My hon. Friend is right; the hospitality sector has been disproportionately impacted by the hike in national insurance contributions because it generally employs people on lower wages for a shorter period of time. In particular, the decrease in the threshold has been damaging to many businesses that have that kind of employment pattern.
My hon. Friend is right that what we really need to do is boost growth and demand. We think that that could happen by introducing a 5% decrease in VAT for hospitality businesses. We need the Government to give hospitality the tools it needs to grow and help boost the wider economy. Thousands of venues are facing steep and unprecedented cost rises, making this a critical moment for the hospitality sector. I urge the Government to tackle the cost-of-doing-business crisis by adopting our proposal on VAT.
I believe, off the top of my head, that it is about £9 billion. We think that that could be met by the money that we have lost from leaving the European Union—from Brexit. As a result of leaving the European Union, £25 billion a year has been lost to the Treasury thanks to the Conservatives’ botched Brexit deal. There are so many better ways that we could have been spending the money that the Conservatives’ botched Brexit deal has cost us.
Pubs, bars, cafés and restaurants across the UK that rely on seasonal workers need all the support they can get, so I sincerely hope Ministers will listen. Today’s motion calls for the abolition of business rates, and the Liberal Democrats agree that we need to see a complete overhaul of that unfair and damaging system. In 2019, the Conservative Government promised a fundamental review of the business rates system, which they failed to deliver. In their recent Budget, the Government committed to rebalancing business rates, but we saw nothing of the sort. UKHospitality says that the average tax increase for hospitality will be 76% over the next three years. Meanwhile, warehouses, offices and large supermarkets will see bills go up by just 16%, 7% and 4% respectively. The Chancellor said that she is looking to introduce permanently lower business rate multipliers, but the painful reality is that the new higher valuations will wipe out any benefit that businesses might have seen.
The increase in the minimum wage announced by the Government in the recent Budget is welcome and will support millions of low-paid workers, but it is not just workers who need a boost; it is small businesses too. Unless businesses are able to grow, there is a danger that the long list of cost pressures they face will result in fewer jobs being available overall.
As it comes towards Christmas, I tend to think of the shows I like to watch, and one is “Blackadder Goes Forth”. Near the end there is a famous quote. Blackadder is finally trying to get away, but he cannot. He knows he is going to go over the top and he says, “Well, it rhymes with clucking bell”. For me, that is what many in my constituency who run businesses are now feeling about not one but two Labour Budgets.
When I think about high streets in Earl Shilton, Barwell and Hinckley, I think about our little cafés and restaurants, the shops, and the pubs. They are really feeling the pressure. The Government came in on a mandate of raising taxes—that is true—but to the tune of £7 billion or perhaps £8 billion, not £40 billion in the first Budget, and £26 billion in the second. Every Government may need to raise taxes—the Conservatives did it when we were in government—but the problem with the current Government, and the issue hitting all my businesses, is the toxic concoction of everything changing at once. There is constriction around the whole idea of growth. We see that at micro level on the high streets of Hinckley and Burbage, and at macro level as a country, with ever tightening red tape and tax, all under the auspices that we are supposed to be growing as a country. We have seen inflation and unemployment go up, and growth stagnate. That is the reality that the country is facing, and so are my high streets.
Alison Hume
Under 14 years of the Conservatives, productivity and growth stagnated—the worst in the G7. Would the hon. Gentleman like to enlighten Members as to whether he thinks that helped or hindered businesses and their employees?
I would love to elucidate, because if we go back to 2010, we had to deal with the financial crisis, and we had to borrow £158 billion to deal with that. Then we had to get the coffers back in the right position, and we were just about doing that before the pandemic hit and we had to borrow another £400 billion. The hon. Lady was not here under the previous Government, but every time we were here, the Opposition were asking us to spend more, and we are now feeling the pressures of having to deal with that.
The hon. Lady talks about what Labour inherited, but it also inherited the fastest growing economy in the G7. We also had inflation at target and very little unemployment, but all those things are now changing under this Government, because of their polices. It is easy to see why. In the first Budget, there was an increase in the national living wage and in national insurance contributions, and business rates relief for the hospitality sector was cut from 75% to 40%. If we fast forward to this Budget, the national living wage has been raised again and the business rates relief has been cut again.
Now the Government have come forward to say, “We are putting transition measures in place”, but those measures will mean a 15% increase for the vast majority of businesses. That increase is capped—I give the Government credit for that—but for the vast majority of businesses, the increase is 15% this year, and then up to 30%, 40% or 70% over three years. That is the prospect for hospitality businesses. They were already struggling because of the very nature of the pandemic as well as high inflation because of the war in Ukraine, so the situation is difficult for those businesses—they are the most vulnerable ones—yet the toxic concoction put in place by this Government is making things worse.
I will go down my high streets this Christmas to speak to those businesses, but I fear what lies in prospect for them as a result of this Government’s actions. How will the measures that the Government have put in place encourage those businesses and help them to move forward? I do not think that Labour Members are anti-business and I agree that they want to support workers, but they are blinkered and naive to think about giving extra rights and pay to workers without taking into consideration the consequences of what may well happen. It is all very well having increased pay, but for people who do not have a job, that is an increase in nothing. That is the heart of the problem.
We want to see more secure pay. The previous Prime Minister, the former Member for Uxbridge and South Ruislip, talked about high productivity and high-value jobs, which all hon. Members want to see. The question is how we get there. We do not get there by tying a tight noose around the businesses that will drive those jobs, which is a real concern for me. Why would anyone take the risk of setting up a restaurant in Market Bosworth or a new pub in Donisthorpe? Why would they take on the responsibility of the livelihood of their employees? Most employers are good employers and care deeply about their workforce.
Alison Griffiths
To reflect on my hon. Friend’s point about risk, employers are taking personal risk when they set up businesses and employ people. When they have so much cost piled on them, that risk-benefit equation evaporates, and with it the jobs that they deliver to other people in their communities.
My hon. Friend is entirely right, and I bow to her experience as I know that she has run and been involved with many businesses. She speaks the truth about what businesses and risk-takers are looking at in this country. They are saying, “Why would I take that risk? Why would I take on that responsibility if there is not any reward?” I would have had more truck with the Government if they set out what they were trying to achieve over the next three or four Budgets sequentially. They could then have increased national insurance contributions, for example, as a one-off, and built around that. However, the problem is that there is a toxic concoction of measures all coming in one go.
John Slinger
The hon. Gentleman is making an interesting speech. On his point about risk, Conservative Members always look at that through the lens of the employer. There are, of course, risks—I spent most of my career in the private sector, so I have some experience of this—but does he accept that employees also take risks? When they take up a job, they need to be paid sufficiently so that they can live their lives with dignity, look after their children, and so on. Does he accept that a balance must be struck between people seeking jobs and employers providing jobs?
The hon. Gentleman is right. As an MP, he will be an employer. No doubt, he is a good employer who offers the members of his team good terms and he cares deeply about the staff who he is looking after. However, we have taxpayer-funded jobs, but the private sector has to generate the funding to employ people, so those businesses have to take the risk and work out whether there will be a job in the first place. Worse still, because of the Government’s Budget choices, many cafés and pubs are looking to reduce the hours that they open, to reduce their staffing hours or even to close because they cannot make the numbers add up. We are seeing a cumulative effect, which is having an impact at a micro level on the likes of Twycross and at a macro level on the whole country, with every industry speaking out and saying that it is having problems.
I had hoped that the Government might listen to those ideas. The Government’s mantra has always been that their No.1 mission is growth, but all the measures that they have put in place are anti-growth. We are seeing the results of that, with inflation being higher.
Lincoln Jopp
The Conservatives are often accused by Labour Members of talking down the economy, but from my recollection, over its 14 years the Conservative party set the conditions for the creation of 800 jobs per day, on average. I have just checked the recent statistics and the number is running at about 373 under the current Government. In addition, net inflation has risen every month that the Government have been in power, since July last year. Will my hon. Friend take an intervention from any one of the very few Members present on the Government Benches who is prepared to say when they think that unemployment might start to fall from the record levels of low unemployment that they inherited from the last Government?
I will take an intervention on that point, if any Labour Member would like to make one. More importantly, my hon. Friend correctly makes the point that it is the Government’s job to set the framework. There is no such thing as Government money: it is taxpayers’ money, earned by those who create the wealth. It is businesses and the associated workforce that provide the public sector with the money it needs to do its job—it is that simple.
In my trade as a doctor, we talk about A-B-C-D-E when it comes to a patient. There is no use dealing with the circulation—the heart—if the person does not have a clear airway. The same applies here: we need to have an economy that is growing and thriving to be able to give the foundation to the funding for the likes of the NHS or education. This is where the Government might be slightly wrong and where they have got the balance wrong, about which we heard from the hon. Member for Rugby (John Slinger). If the system is tilted too far and made too tight for people ever to take a risk, we are not going to have the tax inflow in the first place. Worse still, we have seen 16,000 millionaires and counting leave the country.
Mr Adnan Hussain (Blackburn) (Ind)
I had the pleasure of meeting two risk-takers in my constituency this weekend: Habbak Watches and AutoLab. They are run by people who are simply wanting to grow their businesses and offer chances and opportunities to young people in my town. I have also met many micro and small businesses, all of whom felt neglected and that they were not being offered the support that they deserve. I support the Employment Rights Bill and I support the rights of employees, but I am beginning wonder and worry: are we pitting employers against employees, and vice versa?
I very much welcome the hon. Gentleman’s intervention. There is a risk of doing that, but we have to remember that it does not need to be like that. There are many good employees and many good employers, far more than hon. Members like to talk about. Our job is to protect those margins. If we make the margins too tight, we hinder the very people who are doing a good job, which I think is his inference and what I hear in my constituency. That is why I am asking the Government to rethink this balance and to reconsider the toxic concoction of legislation, red tape and taxation all at once causing such a big problem. At the end of the day, we can have as many employment rights as we want, but if we do not have businesses driving growth and providing jobs, they will not apply—it is as simple as that.
In conclusion, at the end of “Blackadder Goes Forth”, Blackadder resigns himself to going over the top, but Baldrick taps him on the shoulder and says, “Sir, I have a cunning plan.” I hope that the Chancellor has a cunning plan to deal with this situation, but I will not wait with bated breath.
It is all very well supporting the status of workers if there are jobs to offer people. If you have the status, but no job to attach it to, you feel like a bit of a lemon—as I am sure the hon. Lady might do after that question. She should listen to businesses in her constituency, because what businesses are saying is that they do not feel the Government are supporting them. Given her track record in her previous life, she should understand that the hair and beauty industry is one that disproportionately employs young people and women, and the businesses in that industry are very often women-owned. This Government are not friendly to women-owned businesses, either.
Retail, hospitality, and hair and beauty—taken together, the failure of those sectors will prove to be the death knell for our high street. The hon. Member for Harlow (Chris Vince) spoke about how important it is to see his high street regenerated. If we are going to regenerate our high streets and see them as living, breathing, vibrant things, we need to reimagine them as places where we not only shop, but live, work, socialise and engage in leisure activity. The only way that is going to be delivered is if our high streets are filled with small independent traders, but since the Budget, over 1,000 pubs and restaurants have closed—the equivalent of two every day.
We on the Culture, Media and Sport Committee are seeing a similar trend in our work on grassroots music venues, which are still closing at the rate of two a week. Like my hon. Friend the Member for Hinckley and Bosworth (Dr Evans) said, those venues say that the outcome of the small business rates review is nothing short of a disaster for them. A cap of 15% this year is going up to a 40% cap in 2028-29—that is what they are getting after transitional relief, and that still will not be the end of it.
When the Chancellor stood up and said that the Government would be changing business rates, there was some relief across the industry, but now businesses are realising that because the temporary relief that has been in place for five years since the pandemic is being stripped away, even though they are getting these new business rates, they are much worse than what they had before. It is the cumulative effect of both those things crossing over that is causing the problem—that is why bills will go up, rather than come down. Does my hon. Friend agree?
I agree 100%—my hon. Friend has hit the nail on the head. The grassroots Music Venue Trust says that despite multiple Ministers saying on the record that business rates would go down for the live music sector, it cannot find a single venue in the country whose bills will be lower.
Kate Dearden
I have heard lots of Conservative Members reflect on unemployment. What they fail to mention is that the average unemployment rate over their 14 years in government was 5.4%, which is substantially higher than the current unemployment rate. As the right hon. Gentleman knows from Monday’s debate, we have committed to consult on seasonal work. We will work with businesses, trade unions and all other stakeholders to get the legislation right—I will continue to listen and to work with them on the details. It is so important that we pass the Employment Rights Bill, so that we can consult and stick to our road map for implementing it. Many working people and businesses across this country want that certainty; they want us to crack on.
I will try to make some progress, as we are pressed for time. Several hon. Members—including the hon. Members for North Dorset (Simon Hoare), for Hinckley and Bosworth (Dr Evans) and for Gosport (Dame Caroline Dinenage)—raised the subject of business rates reform, as did the shadow Secretary of State. This Government are determined to remove barriers to investment, helping our businesses to succeed, our high streets to thrive and our economy to grow. We are introducing permanently lower tax rates for retail, hospitality and leisure properties with rateable values below £500,000 from April next year. This will give long-term certainty and support to the high street, in marked contrast to the previous form of relief, which created a yearly cliff edge and had to end entirely in April next year. We know that this tax cut must be sustainably funded, which is why from April next year, we are applying a higher rate to the most valuable properties—those with rateable values of £500,000 and above. Let me be clear: those properties represent less than 1% of all properties, but they include the majority of large distribution warehouses, including those used by online giants.
Some Members have spoken about the raising of employer national insurance contributions in last year’s Budget. I have already mentioned the state of the finances we inherited from the Conservative party. That meant that we had to take difficult decisions to get the nation back on track, and one of the toughest decisions was to raise the rate of employer national insurance contributions, but we are protecting the smallest businesses from these changes, including many of those in the hospitality, leisure and retail sectors. These difficult but necessary steps will protect our public finances and ensure that we can to continue to fund our essential services, such as the NHS and social care, and to invest in the economy.
Moving swiftly on, many Members have mentioned the visitor levy. Our mission is to kick-start economic growth and to devolve fiscal powers, and the levy is critical to that. Introducing a visitor levy provides mayors with a new lever that they can use to raise funds for reinvestment locally. We launched a consultation at the Budget so that the public, businesses and local government can shape the design of the power to introduce the levy that will be devolved to local leaders. They will decide how to introduce the levy and how it will be used to drive growth in their region. That is a historic step for English devolution.
I will reflect on some of the comments of the hon. Members for Hinckley and Bosworth (Dr Evans), and for South Northamptonshire (Sarah Bool). I do not share their lack of enthusiasm for continued investment in this country under this Government.
The Minister’s amendment to the motion refers to
“a comprehensive vision for productivity and success”
for small businesses. It is incredibly similar to the amendment that the Government tabled in the high streets debate, but interestingly, what has gone is a reference to a 25% cut in administrative burden. The Minister raised the issue, but did not comment on whether the Government are committed to that 25% cut. Where does that figure come from, and why has it disappeared from this amendment, when it was in a previous one?
Kate Dearden
The Under-Secretary of State for Business and Trade, my hon. Friend the Member for East Renfrewshire (Blair McDougall), mentioned in his opening remarks all the steps that we are taking to reduce those burdens, and all the policies that we are introducing to back our small businesses across the country. On the point that the hon. Member for Hinckley and Bosworth made on investment, just last month J.P. Morgan announced its £3 billion tower. That is one of the largest financial services investments in recent years. Scottish Power has announced a £24 billion clean energy investment, which will create 2,000 jobs up to 2028. We are proud of that investment.
I will finish on the subject of the youth guarantee. Many Members have stressed the importance of employment for young people. There are more 18 to 24-year-olds in employment than a year ago. The Tories left the NEET rate rising and saw a colossal rise of almost a quarter of a million in young people out of work. We are determined to turn that around. NEET numbers are still too high, and lots of Members have rightly reflected on that. We want to give young people a brighter future, and that will be the impact of our youth guarantee. Our measures supporting young people to earn and learn are backed up by the evidence on what works. There is a national crisis of opportunity, and we are taking action in response —through the youth guarantee, the growth and skills levy, and, more widely, by interrogating the root causes of the issues, with the support of Alan Milburn.
To summarise, this Labour Government are on the side of working people and our brilliant businesses. We have boosted pay for millions of the lowest earners, and we are putting money back into people’s pockets. We are making work pay again in a way that suits the 21st century, and that will create security and opportunity for everyone, no matter their background. Most of all, we have a commitment to a core British value: those who work should be rewarded. As we put it in Yorkshire, this is about a fair day’s pay for a fair day’s work. We are getting on with the job. We are focused on fixing the long-term damage to our economy, and setting Britain on the path to renewal. That is why I call on the House to support our amendment.
Question put (Standing Order No. 31(2)), That the original words stand part of the Question.
(6 days, 10 hours ago)
Commons ChamberI will not name them, but the Minister will know who was in the room with her. That is what they have told us, and that is what I am reflecting in my comments today.
Does the hon. Lady agree that it would have been helpful if an impact assessment had been carried out, so that everyone could see exactly what the impact of removing the cap would be?
I would agree, but my point is that this last-minute change has been sprung on us and the business groups that engaged in good faith with the Government on these measures. This is a last-minute change that we and the business groups were not expecting, and that is why we will not be supporting it.
(2 months, 4 weeks ago)
Commons ChamberIt is a pleasure to make my first appearance at the Dispatch Box as Secretary of State for Business and Trade to deliver the biggest improvements in workers’ rights for a generation, as part of the Labour Government’s Employment Rights Bill, which formed a key plank of my party’s manifesto commitments.
I take this opportunity to pay tribute to my predecessor, the right hon. Member for Stalybridge and Hyde (Jonathan Reynolds), for his work on the Bill and, more widely, in supporting our country to get to growth. I pay tribute to my right hon. Friend the Member for Ashton-under-Lyne (Angela Rayner) for her tireless fight for the rights of working people. Without her, this Bill would simply not exist. I also pay tribute to my hon. Friend the Member for Ellesmere Port and Bromborough (Justin Madders), who worked so hard to get the legislation to this point, and to my dear friend Baroness Jones of Whitchurch, whose indefatigable work in the other place has ensured that this Bill was steered through the legislative process with a very steady hand. To many who have worked on this Bill, it has been a life’s work, and the culmination of an enormous amount of effort on their part, for which I am extremely grateful.
This is a landmark Bill. It is pro-worker and pro-business, and it supports the Government’s objectives of boosting growth and improving living standards across the country.
Of course I can. Many businesses have now come out in support of the Bill. The hon. Gentleman asked for a small business or a large business; let me give him one of each. I have talked to small and medium-sized enterprises. R & W Scott Ltd, a leading UK manufacturer based in south Lancashire specialising in high-quality ingredients for jams, came out in steadfast support. If the hon. Gentleman wants to know of large businesses who back this Bill, I could mention the Co-op, Centrica and Richer Sounds—all businesses that, as he will know, serve his community and his constituents. He should get behind those businesses in their support of the Bill.
(6 months, 3 weeks ago)
Commons ChamberHow tragic is it that from Gosport to Gloucester and everywhere between, businesses on our high streets are closing? This Government do not understand that. If they do understand, they do not care, and if they care, they have not acted. The message from this Government to anyone willing to put their capital, time and energy on the line by taking risk to create wealth as a business owner is abundantly clear.
Exactly to that point, is it not a shame that for the first time ever since records began in 2012, the number of new businesses registered at Companies House has fallen? The exact risk-taking behaviour that we need to grow the economy is not taking place; is that not a damning indictment of what this Government are doing?
My hon. Friend makes an incredibly important point. I believe that all of us come to this House to try to do our best and to grow the economy, but any Government faced with that terrible metric about the failure rate and formation rate of businesses would be acting immediately, with haste, and reversing so many of the measures. The choices this Government have made have delivered precisely the outcome my hon. Friend describes.
No one would believe, Madam Deputy Speaker, that you would implement such terrible measures without a proper impact assessment. More significant, however, is the fact that we have heard not just the voice of my hon. Friend the Member for Bognor Regis and Littlehampton (Alison Griffiths), representing those important seasonal industries, but the voice of employers across the country, who have pointed out that it will no longer be possible for seasonable and flexible work to deliver the economy that we need.
The problem with the Employment Rights Bill is not only its implied cost and the red tape it will introduce, but the fact that it is a poor piece of legislation in the first place. The Government’s own regulatory independent commission has said that eight of the 23 criteria are not fit for purpose. Does my hon. Friend not agree that if the Bill is to proceed, it should be reworked?
My hon. Friend is exactly right. If Labour Members were honest enough to do so, they would admit that the Bill is a rushed piece of legislation. It was introduced because of an arbitrary promise to do so within 100 days, and it was introduced at half its current length, which means that 50% of the words that it now contains—the red tape that our businesses will have to implement and wrestle with for years to come—did not even benefit from scrutiny in this place. Many of the powers in the Bill are not fleshed out or clarified. We will wreak great havoc and uncertainty on business if the Government are determined to proceed. It would be far better for them to shelve the Bill, to listen, to learn and then to come back so that we could use the proper mechanisms of this House to do our jobs for all our constituents to avoid the unintended consequences and the damage that I do not believe anyone would want.
I thank the hon. Gentleman for making that very perceptive observation. I hate to say this, but I was not making a casual point; it was a considered point. When we think about how this House continues to legislate and tax in a way that reduces economic growth, that does not celebrate a culture of entrepreneurialism and founders, and that is leading to higher employment, with 100,000 fewer people on payroll than there were a year ago, we should all look deep into our souls. What is the endemic failure in Parliament, and of this Government in particular, that is leading so quickly to precisely those outcomes?
It is sad to say that sometimes there is a lack of voice for business. Although one does not want every single sector to be represented in this place, the compensatory mechanism for that involves consultation and diligent impact assessments. In introducing legislation, this Government have been serially criticised for the way that they have casually discarded such measures, and the Treasury maths simply do not add up.
I think it goes wider than that across the top of Government, because Members on both sides of this House are grappling with what to do about people who are long-term unemployed. If we make it more likely that companies will not take a risk on getting someone back into work while increasing unemployment at the same time, we will create a toxic concoction at a time that we are trying to get people back into jobs because we know that that is better for the economy and better for them, their health and their family. Does my hon. Friend agree?
I do indeed agree. We ought to confront how we have got here—I acknowledge that it has happened over a period of time—with so many young people unable to work, get an education or be in productive training. That is a headwind on the economy, and a moral failure of us all. The question that we should confront ourselves with is this: what are we doing each and every day in this place to give opportunities to 1 million young people and the 9 million others of working age who remain stubbornly on welfare, while improving our public finances and making the maximum use of the wonderful resources, education and skills of the British people, so that we can grow our economy and be the prosperous nation that we once again deserve to be?
The hon. Member is exactly right. When I describe my constituency as “South Downs”, people occasionally assume that it is in Northern Ireland, but all of our young people deserve the best opportunities. We know that the best outcomes for young people are when they can enter the workforce, and that if, when they graduate from school, college or an apprenticeship, those young people cannot immediately find productive work, the scarring impact of that can run through the entirety of their adult life and they never catch up with their peers’ earnings. That is why it is so important that we have a healthy labour market, and a healthy labour market relies on the ability of employers to feel that they can take a chance, give people opportunities and benefit from that.
I want to make some progress, which I suspect may be popular. There are many Members on the Opposition side; sadly, there are disappointingly few on the Government side. Given the paucity of business experience on that side, it is probably appropriate for there to be more listening than talking on the Government Benches.
Let us imagine—and, Madam Deputy Speaker, you will know this from your wonderful constituency—that despite all the headwinds this Government have imposed on business, an entrepreneur does well, grows their business into a successful operation and wants to hand it down to the next generation after they are gone. Those people, who have taken risks to create something good for society, are now at a competitive disadvantage as a result of the family business death tax. They will be forced to carve up, slice up, or close up shop forever to meet the demands for business property relief and inheritance tax.
Analysis from CBI Economics for Family Business UK estimates that this measure alone will result in 208,000 job losses and a £2 billion net loss to the Treasury. Again, I hope the Minister will address that directly when he responds. Family Business UK’s chief executive, Neil Davy, says that “far from stimulating economic growth” this policy “will achieve exactly the opposite.” He is right. To illustrate just how ridiculously flawed this policy is, it applies to families here in the United Kingdom, but it does not apply to overseas businesses that operate here, or to those owned by private equity or foreign corporate owners.
Labour has stolen any incentive for success from a generation of home-grown entrepreneurs. We really cannot go on like this. The gulf between those who create wealth and those who govern us has never been larger. Only one Cabinet Minister, the Secretary of State for Scotland, has any real experience of running a business. Trying to find business experience among those on the Labour Benches is like trying to find a tax the Deputy Prime Minister does not think needs to be raised. It is no surprise that, according to the Institute of Directors, over two thirds of businesses are now pessimistic about the future of the economy.
I would argue that it is actually worse than that. A study by the Chartered Institute of Personnel and Development has said that business confidence is at the same level it was in the pandemic. In the pandemic, businesses shut up shop and were not sure they would ever open again, and that is the level of business confidence we are dealing with at the moment. A quarter of businesses say they will lay people off, and that is the reality out there. Does my hon. Friend agree that that is why the Government need to listen, and change course?
Our business community is ravaged; my hon. Friend is exactly right. We are plummeting to depths last reached only when the entire global economy was shut down due to an unknown pathogenic virus. If that is the bar the Government set themselves, I urge them to have a little bit more ambition and confidence in their ability to grow our economy.
No nation can spend its way to growth, or tax its way to success. I fear that we are about to see a case study showing exactly that this does not work. It has been tried before, and it did not work then. We cannot afford the ignorant short-sightedness of this Government. To achieve growth, we need a country in which everybody’s spark of ambition can find ignition. Not everyone needs to run a business, but for those who do, we want a country that values, cherishes and honours its wealth creators; where transforming a side hustle into a main hustle is straightforward; and where His Majesty’s Revenue and Customs is transformed from a predator to a partner, and the tax system goes out of its way to reflect the risk of investing, and of running a business. We want our regulators to think carefully before they intervene, and not to pounce on every perceived failure as another reason to try to eliminate risk.
I say gently to the hon. Lady that the current rate of inflation is an awful lot lower than the 11% it rose to under her party.
I was a bit surprised that there was nothing in the shadow Secretary of State’s lengthy speech on trade until my hon. Friend the Member for Peterborough (Andrew Pakes) provoked him. We have secured three massive trade deals: with India, the United States and, this week, the European Union. That will slash the cost of doing business abroad, reduce border checks, cut tariffs and axe red tape. Those trade deals will support jobs for British people, and create opportunities for Great British businesses in our biggest current markets, and in one of the world’s biggest future markets.
The Conservatives tried to do a deal with India, but could not; it has taken us just 10 months. They wanted a trade deal with the US—indeed, they had four years to do a trade deal with President Trump—but they could not; we have managed to do one in just four months. The deal they did with the EU was the worst trade deal in history; every opportunity they had to minimise red tape and border checks, they rejected. What was the result? Businesses stopped exporting to Europe in their thousands. Our deal with Europe sticks to our red lines, will save businesses thousands of pounds, will cut the cost of food in our supermarkets, and will help to get great British food products—from sausages to shellfish to seed potatoes—back into European markets.
Once upon a time, the Conservatives were in favour of free trade and trade deals. Now, they are against just about everything. Far be it from me to give advice to the Opposition, but the party in opposition is still allowed to support measures that are obviously in the national interest.
The key thing is, the Conservatives are in favour of free trade, just not at any cost. That has been the biggest problem with these deals. The Minister says that the previous Government did not sign off on them, and for jolly good reason—that is the point we are trying to get across. There will be people queuing up to come to the UK because they see us as a soft touch now and think they can get anything out of us. That is what we want to stop.
Well, I am grateful to the hon. Gentleman for confirming once again that he is against the India trade deal, against the deal with the US and against the deal with the European Union.
I turn now to business investment. The Opposition’s motion claims that
“investors and entrepreneurs are being driven overseas”.
I hate to break it to Opposition Members, but the facts tell a rather different story: business investment actually rose by 5.9% in the first quarter of this year, the fastest quarterly growth in two years. In other words, business investment is higher than when the Conservative party left office.
As I understand it, the hon. Lady actually supports the investment that those tax changes are delivering—she supports every penny of that investment coming into our economy. I wish the Conservative party—perhaps the hon. Lady has some influence with the shadow Chancellor—would set out its plans to raise a similar amount of money, if it does not like our spending plans.
I was reflecting on the newest ONS statistics, which show a 2.8% increase in the number of new businesses during this first quarter. Despite what Conservative Members have claimed, business closures are actually down 4.4%. The latest business confidence index of the Institute of Directors showed a significant rise in economic confidence, with their members stepping up recruitment and investment plans for a second month in a row.
Employment statistics are really important. In the Minister’s constituency, unemployment has risen by a staggering 31% in the past year. In my constituency, it has gone up by about 10%. That will have a real impact. Perhaps he will come on to how he will support people into work, because it looks like unemployment has gone up by 10% across the country. That is a real concern for people, as they need to work and look after their families.
The ONS numbers on employment show an extra 200,000 jobs in the economy since the general election, so I gently encourage the hon. Gentleman to look at a slightly wider range of statistics.
The shadow Secretary of State once again turned to the making work pay and Employment Rights Bill agenda of the Labour party. Let me remind the House that the reforms are about increasing job security for working people. They are about raising both the national minimum wage and the national living wage so that more than 3 million eligible workers receive a pay rise of up to £1,400; ending exploitative zero-hour contracts; and bringing an end to unscrupulous fire and rehire policies.
Torsten Bell
Because Labour Back Benchers support and have total trust in their Front Benchers. All they would have said is everything that I am about to say about the record of this Government, of which we are very proud.
I will come on to the labour market, which the hon. Member for Harborough, Oadby and Wigston raised. The hon. Member for Richmond Park (Sarah Olney) asked about employment and changes to national insurance, and several Members claimed that there is a direct relationship between changes to national insurance and changes in vacancies in the labour market. Let us introduce some facts to the debate—[Interruption.] While the shadow Secretary of State chunters, here are some facts: vacancies in Britain have been falling for 34 months, there has been a Labour Government for 10 months, and there has been a national insurance change for one month. Those are the facts. We cannot let the Conservative party escape from their disastrous record by reinventing history.
One fact is that the claimant count and unemployment rate in Swansea West have gone up by 4% on the previous year. What does the Minister say to his constituents when they confront him because they are losing their jobs and the unemployment rate has gone up?
Torsten Bell
The most important fact for my Swansea West constituents is that wages at the end of the Conservatives’ period in office were stuck at the same level as when they came into office in 2010—14 wasted years for my constituents. To respond to the hon. Gentleman’s question about unemployment, I would not use the claimant count at that level because the data is not as robust as it should be. Several hon. Members have, over the course of the debate, talked about increases in the unemployment rate in recent months. Why has the unemployment rate gone up? It is not because employment has come down, but because the inactivity that shot up on the Conservatives’ watch has started to decline. That is what is going on beneath the numbers.
Why do Conservative Members not want to talk about their disastrous record on the labour market? It is because they left us as the only G7 economy whose employment rate still had not returned to pre-pandemic levels. They left us with 2.8 million people out of work through long-term sickness, and 1 million young people not in education, employment or training—more than one in eight young people were left on the scrapheap by the Conservatives.
Let me turn to the labour market today, which hon. Members have mentioned. Some 200,000 jobs have been created since the Government took office. Pay has outstripped prices, with the strongest real pay growth for years. Let me pause on the question of wages, because for many people, what they get paid is the economy. Here is a fact so staggering that it tells us all we need to know about the failure of the previous Government and the progress made under this one: wages have grown faster in the first 10 months of this Government than they did in the first 10 years of Tory Governments from 2010. That is what a country turning a corner looks like.
(9 months ago)
Commons ChamberAfter 21 sittings in the Public Bill Committee, the Government are still tabling hundreds of amendments to the Bill. That highlights once again that their false political deadline of 100 days in which to publish the Bill was foolhardy. They should have taken better time.
This is a bad Bill. Although it contains many good and well-intentioned measures, the Government have failed to get the balance right between employees and employers. Although I welcome some of the Minister’s comments—not least on bereavement leave for pregnancy loss, on which we spoke at length and agreed in Committee—I am afraid that the Government have got the balance wrong in the vast majority of the Bill. The amendments in the names of right hon. and hon. Friends in His Majesty’s loyal Opposition seek to highlight how the Bill simply goes too far in too many regards: it will affect our economy, it will affect the number of people who have a job, and it will affect the willingness of employers—the wealth and job creators—to take on new staff, to grow, to put new product lines in place and to keep employing people.
I thank my hon. Friend for giving way and doff my cap to him for his 21 sittings in Committee. When the Regulatory Policy Committee considered the Bill, it said that eight of the 23 impact assessments were “not fit for purpose”. Is he any more confident that that has been rectified through the amendments?
I am sorry to have to report to my hon. Friend that, no, I do not have greater confidence that the Bill will work. He is right that the RPC placed so much of the Bill in the red column—at severe risk—and identified it as “not fit for purpose”. Some of the amendments in my name and those of right hon. and hon. Friends, to which I will speak in more detail in a moment, seek to explore further the impact that the measures in the Bill will have on the economy, and to answer the point that he rightly outlined.
Fundamentally, we know that every Labour Government leave unemployment higher than when they started; the difference with this one is that they are actually legislating for that outcome.
I will turn first to new clause 83 and amendment 283. When we were in government, we banned exclusivity clauses in zero-hours contracts. We know that this flexibility works for many employees on zero-hours contracts, such as students and those with a summer job or other responsibilities—employees can value that. This Bill imposes a statist, top-down, “Government knows best” approach, which will limit flexibility for both employers and employees.
My right hon. Friend makes a very good point in his stylish, witty manner.
As my hon. Friend the Member for Hinckley and Bosworth (Dr Evans) said, the Regulatory Policy Committee has given a red rating to the identification of options and choice of policy on zero-hours contracts and guaranteed hours in the Bill. That means the Government have not justified the necessity of clauses 1 to 6. What is the problem the Government are trying to solve with those clauses? Why are those clauses needed? We just do not know. The Bill, despite literally hundreds of Government amendments, remains silent about how these provisions will work in practice, which means the Government’s assessment that the administrative cost of the Bill to business in shift and workforce planning will be £320 million could well be an underestimate.
The deputy CEO of UKHospitality raised their concerns in Committee, saying:
“the Government are intending to leave it to case law and employment tribunal systems to figure out what ‘reasonable notice’ means.” ––[Official Report, Employment Rights Public Bill Committee, 26 November 2024; c. 43, Q39.]
That is an unacceptable way to legislate. Businesses crave certainty and a stable regulatory environment. This Bill provides anything but, and the result, as the chair of the CBI has said, is that it risks becoming
“an adventure playground for employment rights lawyers.”
My hon. Friend is a learned man and he may have seen the report in the Financial Times that, for the first time ever, the number of companies registered at Companies House has fallen. Does he think this Bill being on the horizon has anything to do with that, particularly given the points that have been made about it not being fit for purpose?
My hon. Friend makes an exceptional point. The Bill categorically will be playing a part in that, along with the Budget of broken promises, the increase in employer NI and so on. I shudder to think what will happen when the Bill becomes law. We understand the parliamentary arithmetic—we understand that the Government will force this through, and that is the reason we have tabled new clause 83 and amendment 283.
(1 year, 1 month ago)
Commons ChamberMy hon. Friend is absolutely right that we need to get more people back into work, and need to support them to return. In the Employment Rights Bill, we are looking to increase the scope of sick pay to include people below the lower earnings limit, and to introduce payments from day one. We have no plans to increase the rate of statutory sick pay, but when we get the reforms through, we will no doubt look at how we can reform it for the better. My Department for Work and Pensions colleagues will consider that in due course.
No. I gently point out to the hon. Gentleman the difficult economic inheritance that his party left this Government to sort out. We are determined to walk towards all the tough decisions his party refused to face up to in government. If he is against the increase in employers’ national insurance contributions, he needs to say how he will fund the investment we announced yesterday in the aerospace and automotive sectors, and how he would fund the extra investment that we will make in the NHS and other public services.
(1 year, 10 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Of course we should be using the most accurate figures that we have. Later in the speech, I will talk about the data we really want, which would settle this matter once and for all beyond reasonable doubt.
I thank the public for their pressure and interest in these statistics, the people who have attended in person today and the thousands who will be watching on television or online.
There is a burning question at the heart of this debate. After excess deaths, there should be a deficit: where is it? When will we have it? Worse, why is the deficit being not just filled but significantly exceeded? Why are the institutions, whose job it is to notice, record, publicise and call attention to such matters, apparently asleep at the wheel?
A second burning question is why no one is listening to those raising the alarm. The research and analysis done by two of Britain’s most trusted doctors provide us with alarming clarity. Only this week, Professor Carl Heneghan, director of the Centre for Evidence-Based Medicine at the University of Oxford, reviewed the causes of excess deaths and concluded that they are predominantly related to cardiovascular disease. He told the Sunday Express newspaper that this cannot be explained by covid, population growth or an ageing population. Yesterday, consultant cardiologist Dr Aseem Malhotra, who is a world-leading expert in the causes of heart disease, told TNT Radio that even though cardiovascular disease is multifactorial, top of the list in the hierarchy of causes behind excess cardiac-related deaths has to be the experimental covid mRNA vaccine until proven otherwise. This is not speculative.
No—let me finish the point and I will then give way.
Dr Malhotra’s point is not speculative but based on the highest level of data that combines plausible biological mechanism, randomised control trials, high-quality observational data, pharmacovigilance data, autopsy data and clinical data. Those who choose not to acknowledge these cold, hard facts are either unaware of the evidence, wilfully blind or lacking in conscience.
I am grateful to the hon. Gentleman for shining a spotlight on the important issue of excess deaths, but I am keen to understand the difference between correlation and causation. There is a correlation between eating ice cream and sunburn, but we do not necessarily assume the two go together; they could be caused by sunny weather. The same goes in this case. Is the cause to do with lockdown, late presentation or access to the NHS? Understanding causation and correlation are key to understanding why the numbers are so high.
I agree with the hon. Gentleman. He is a medical doctor, so he clearly has some knowledge. Correlation is not causation, but it is an alarm bell. Alarm bells are going off all over the building, but no one wants to open the door to see whether there is a fire.
Future generations will ridicule us for what we have done in response to a seasonal airborne virus. We have apparently lost our collective minds. We have imposed a brand-new type of quarantine on a healthy population, in breach of all previous public health advice and our own carefully crafted expert pandemic plan, and in flagrant breach of the sensible and experienced advice of many professionals.
The noble dissenters are inevitably being vindicated, one by one, as the suppressed, shaming, real-world evidence finally emerges. I will not mention those who harass, discredit and ridicule the dissenters; they loudly parade their egotistical virtue on social media, in the press and on television. I know exactly how harassment feels.
We inflicted social distancing, masking and school closures on healthy children who were at no risk from the virus. We did that to protect adults, at the expense of our children’s social and mental health. People raised the alarm, but nobody listened. A society that consciously and knowingly sacrifices perfectly healthy children for adults is sick. This time will not be looked on well by future generations. That will be our legacy, and I call on this House and those in authority to right that grievous wrong quickly. With unbearable cruelty, we isolated even those who would gladly have made the individual choice to see their grandchildren.
Worst of all, we bypassed the procedures, protocols and science to inflict on a healthy population a brand new and untested product that had never before been used outside clinical trials, never mind approved. There was no long-term safety data. The safety analysis in the trials was eight weeks, and then the control group was vaccinated. There was no age stratification for recipients of an experimental medication for an illness with an average mortality age of 82. There was no liability under any circumstances for the manufacturers of those experimental treatments. Furthermore, there were good reasons, based on the science known at the time, for thinking that those products might be harmful. Rather than ridicule us, future generations may come to loathe us. We will forever be the poster boys and girls of a society that collectively lost its mind and its moral compass. They will hang that millstone around our necks for eternity.
What is the flaw in human nature that latches on to things and destroys all before it? It has been dubbed by some as the madness of crowds or a kind of mass formation psychosis. It is the sort of thing that allowed China to commit population Armageddon with the one-child policy for decades. It is the sort of thing that allowed us to slaughter millions of cattle during the apparent foot and mouth outbreak, when we were persuaded not by the science but by the plausible patter of provable idiots such as Professor Neil Ferguson—yes, the very same. His advice led to the bankruptcy, immiseration and utter despair of countless farmers who were forced to destroy their livelihoods in a futile attempt to prevent the spread of an airborne virus, which had already managed to pass in the air all the way from France to the Isle of Wight. How many times must the so-called experts be caught with their pants down as their models fail yet again? How long must we be subjected to debunked drivel dumped in our political discourse? How long must decision makers deal with discredited modelling and moribund and captured institutions? Why will no one listen to reason when they have been proved wrong so many times?
There are many other examples in medicine, from bloodletting with leeches to pointless lobotomies to not washing hands between the mortuary and the labour ward. Doctors and scientists are far from immune from groupthink, and the current batch are living proof.
(2 years, 3 months ago)
Commons ChamberThe hon. Lady raises an important point. That is why we launched a payment and cash flow review earlier this year, which is due to report very shortly. We are ambitious to make sure that small businesses get paid more quickly through putting more pressure on larger companies, the results of which will be announced very shortly.
In August, I was lucky to be invited to the 70th anniversary of Caterpillar being founded in my constituency. It was the first place outside the US it set up a base in, and it now employs 1,300 people, making things such as the electric backhoe loader. Will my hon. Friend congratulate Caterpillar on its investment here, from where it exports across the world? Would she like to come and see exactly what it does in Bosworth?
I join my hon. Friend, a great champion of Bosworth, in congratulating Caterpillar on 70 years and 1,300 employees. That is fantastic. I look forward to going along and having a go on the electric diggers.
(2 years, 4 months ago)
Commons ChamberThe shadow Secretary of State will know that the Prime Minister has identified the creative industries as one of the five sectors of growth that we are supporting as a Government, because they are really important. She mentions GCSEs, but I do not think we should just have music and arts at GCSE. We need them at T-levels, we need apprenticeships and we need them in primary school. She will know, because I have talked about it incessantly, that that is exactly what we are doing and that is what is in our creative sector vision. I will just point out—because I was reminded of it the other day—that a Labour Secretary of State for Education and Employment, David Blunkett, slimmed down the statutory curriculum for creative education and told headteachers to teach fewer creative subjects at school.
The Government have committed to delivering a refreshed sports strategy that will set the long-term strategic policy direction for sport. The strategy will outline the Government’s future ambitions and how we will support the sector to achieve them, and we intend to publish it as soon as possible.
I am grateful for the Minister’s answer. With many more people getting into sport, there is also a temptation to get into image and performance-enhancing drugs. We have seen an explosion in that, with estimates of between half a million and 1 million users—and that is an underestimate—from academics, UK Anti-Doping and organisations such as ukactive, which I have met with. Will the Minister look at putting a policy in the sports strategy to gather more data on image and performance-enhancing drugs in sport?
I praise my hon. Friend for being a doughty campaigner on this important issue and thank him for that. He has rightly raised this with me on a number of occasions. The safety and wellbeing of everyone taking part in sport is hugely important. That includes looking at image and performance-enhancing drugs. Since I last met him, I have raised this with UKAD. We must bring about better collaboration across the Department to ensure that we tackle this issue.
(2 years, 5 months ago)
Commons ChamberI thank my hon. Friend for bringing that to my attention. She is such a powerful voice for Cornwall. I am surprised that the Department for Transport has not yet buckled, because I know what a champion she is for her constituency and the region. I will ask my team to engage on this matter with their counterparts at the DFT and the Department for Levelling Up, Housing and Communities. I know that she will not stop until she gets what she deserves for her constituents, so I am more than happy to give the strength to her elbow.
We have secured trade deals with 70 countries, including the EU, since 2019—partners that accounted for £1.1 trillion of UK bilateral trade in 2022. As I mentioned earlier, in March we concluded negotiations with the comprehensive and progressive agreement for trans-Pacific partnership, the UK’s biggest trade deal since Brexit. In addition, we have signed five new comprehensive trade deals tailored to the UK—those with Japan, Australia and New Zealand; a groundbreaking digital economy agreement with Singapore, and a digital trade agreement with Ukraine—as well as the programme of 63 non-EU continuity agreements.
The post-Brexit developing countries trading scheme, which was alluded to in earlier questions, covers 65 developing countries and 3.3 billion people. Will my right hon. Friend spell out exactly what the benefits are for businesses and consumers in Hinckley and Bosworth, and the UK, and can she confirm that that is a more generous scheme than the EU scheme that we left?
I can confirm that our offer is now more generous than what the EU offers in terms of market access—for example, we allow the least developed countries to source raw materials from other markets and still import goods tariff-free. Overall, my hon. Friend’s constituents will be pleased to know that the trade preferences in the developing countries trading scheme reduce import costs by more than £770 million a year. That is key because it helps to reduce prices and increase choice for UK businesses and consumers, and to tackle inflation, particularly for the highest-sold items such as clothes and food.