Business Confidence

Debate between Mims Davies and Helen Grant

Tuesday 15th October 2024 Westminster Hall

[Mims Davies (East Grinstead and Uckfield) (Con)]

I beg to move,

That this House has considered business confidence.

It is a pleasure Mrs Harris, to serve under your chairmanship today.

“Sustained economic growth is the only route to improving the prosperity of our country, and the living standards of working people”—

so intoned the Labour manifesto published over 114 days ago, ahead of the general election. I am sure that most, if not all, of us across the House accept the basic and fundamental premise that such growth is what ultimately funds our vital public services, which are crucial to all our communities.

Reducing inflation, giving business confidence to invest and delivering growth was a hallmark of the outgoing Conservative Government. After a difficult few years affected by the pandemic, it remains important for all Members of Parliament to be business champions for our communities. I thank every business, in all our communities, for what they do every day—every business on our high streets, in industrial estates and in the rural economy. I am thinking of the self-employed: those taking a chance so that others can be employed, sectors can grow and families are supported.

Many businesses in the Mid Sussex, Wealden and Lewes districts are hidden—family businesses, start-ups in back bedrooms, future dreams and more opportunities. They are, above all, a way to connect our communities to a thriving local economy and an investment in our future. They are giving, truly, an opportunity to all. Very shortly, I will be hosting my “Taste of East Grinstead and Uckfield constituency” event in the House of Commons, a follow-up to my most recent business breakfast at the Highlands Inn in Uckfield. I am sure that many other MPs will be showcasing businesses in their constituencies and working with them in this way.

Despite lingering covid shocks and the devastating war in Ukraine, inflation reached 2% by May and economic growth rebounded strongly, reaching 0.5% in quarter 2. Our dominant services sector grew by 1.5% in the same quarter. Key to delivering economic growth is, of course, inspiring confidence—the so-called “animal spirits” in the oft remembered words of John Maynard Keynes. They are a vital pre-requisite. Indicators suggest that confidence was growing in the first half of this year.

Like many things, the new Labour Government have failed to live up to their own hype, let alone the aspirations of millions of working people or businesses who create those jobs and opportunities all across our land. I welcome the international investment summit and the £63 billion it raised, but I remind the House that almost half that investment had already been previously announced by the Conservative Government; I warn the Minister of the danger of double counting.

In a little over 100 days, the Institute of Directors economic confidence index has fallen to minus 38—the lowest since December 2022. The same index points out business investment intentions, showing the sharpest drop since the onset of the pandemic: it was plus 24 in July and minus six come September—the lowest since September 2020. CBI survey trends have shown that manufacturers thought that output would fall over the next year: minus seven compared with plus nine in August 2024. The latest purchasing managers index for the services sector is also, I am afraid, heading in the wrong direction, showing that our economic recovery is somewhat running out of steam under the new Government.

What is the cause of this reversal? Institute of Directors members cite ongoing concerns over tax changes and the cost of new Labour reforms. The British Chambers of Commerce stated:

“On the domestic front, many businesses are increasingly anxious about the direction of economic

policy, and taxation has now become their primary concern”.

Now, the biggest single concern for business leaders is tax. A survey undertaken by the Institute of Chartered Accountants in England and Wales cites tax as the chief concern—the highest ranking on the survey ever. Given the mood music emanating from the top of Government, how can that be a surprise? Both the Chancellor and the Prime Minister have repeatedly warned that further taxes are coming, but have repeatedly refused to tell us where—a hard winter, not just for pensioners but for business. We heard that clearly at the Dispatch Box, just last week. This is the result of a single structural decision to delay the Budget until October, which has simply allowed rumours in.

Already, the situation is changing the behaviour of businesses. A survey by Evelyn Partners shows that 29% of business owners are looking to sell, while hard data shows the Treasury pocketing the highest level of capital gains tax in 15 years as investors head to the exit door. That is hardly a recipe for the growth—let alone stability, which the Labour Party promised our constituents. Just last week in Prime Minister’s questions, and recently in the media, the Prime Minister refused to rule out a rise in employer national insurance. I remind hon. Members that the Labour manifesto was clear, stating that:

“Labour will not increase taxes on working people, which is why we will not increase National Insurance”.

The situation has created a falling away of job vacancies. I remind the Minister and his Government that local small business owners are clearly working people. This is a pure jobs tax. Labour’s position now seems to be that taxing working people is bad but taxing their jobs is good. It is no wonder that businesses are confused and concerned.

One agricultural business in my constituency recently wrote to me:

“I hear dark stories about the forthcoming budget and the possibility that the financial support for the agricultural sector of the economy is likely to be reduced or even slashed. If this were to happen the viability of my family’s enterprise would be at risk and the livelihoods of between 20 and 30 families would be threatened. Our business is focussed on producing milk, grain and timber for the nation and on caring for the environment in which we live and operate.”

I am sure that other hon. Members here will be bringing similar concerns from their own constituencies and reporting similar things.

[Helen Grant (Maidstone and Malling) (Con)]

I thank my hon. Friend for giving way and congratulate her on bringing this important and timely debate. Many farmers in my constituency of Maidstone and Malling are having a very tough, wet time, like the farmers in her own constituency. I believe that, for many, business confidence is pretty much at an all-time low. Does she agree that reducing red tape, regulation, bureaucracy and endless reporting, and having a slightly more light-touch approach in terms of planning and the re-diversification of farms, could boost business confidence and inspire and motivate farmers?

[Mims Davies]

I thank my hon. Friend. She is absolutely right: I have had conversations in my own district of Mid Sussex about supporting diversification in the rural economy. If things were changing on the high street, they would be supported; if they are in a rural business, they are blocked. I absolutely agree with my hon. Friend. I hope that the Minister is listening, although it seems that his party is not here to listen. I thank hon. Members here from the other parties, who are keenly supporting their own constituents too.

As I said, this is hardly a recipe for growth, let alone stability. A farming conference is coming up shortly at the South of England showground in Ardingly in my constituency, and that will be vital to business. Sponsorship in support of that has been absolutely key. I take this opportunity to wish good luck to Fallow Meadow, a new event space in West Hoathly in my constituency—another rural business taking a chance to diversify in order to support the family farm.

Sport in the UK

Debate between Mims Davies and Helen Grant

Monday 4th February 2019 Commons Chamber

[Mims Davies]

I will plough on, but thank goodness for Stirling!

I want us to find different ways of doing things. I want to find the next parkrun or daily mile. I thank the fabulous parkrun family for all they are doing. Building strongly on the success of the This Girl Can campaign, we need to be smarter about how we use data and new technologies to get people moving and—more importantly —staying moving. I want us to make being active easy and fun for everyone and a habit for everyone.

December’s Sport England’s active lives children’s survey will help us to understand how children in particular engage with and think about sport and physical activity. This world-leading study represents a big step forward. We now have robust data that tells us which changes will make the biggest difference to our children’s lives. The first set of results was published late last year, and the evidence it set out was a wake-up call for the sector. Our children are simply not active enough. We all need to address that head on.

I will work with ministerial colleagues in the Department for Education and the Department of Health and Social Care, and I am delighted that we will be publishing a new cross-Government plan to focus on getting kids active in and out of school. I particularly want to focus on after-school periods when children should have the opportunity to be active and safe in enjoyable environments. I want to make sure that all children have access to the right sporting offer and that they enjoy physical activity and therefore can reap the benefits of an active lifestyle. Sport needs to be fun, inclusive and engaging. There is a world of options out there, as we have heard, and I want us to work harder to make sport and physical activity appealing to everyone.

Why does this matter? Being active brings many benefits not just to children but to people of all ages. Working with the Department of Health and Social Care, I want us to embrace the use of sport and physical activity in improving health outcomes. Being active can reduce chronic diseases and health conditions such as diabetes and heart disease, and it can ease pressures on our health and social care systems. Given our aging society, we must do everything we can to help people to enjoy healthy, independent and fulfilling lives for longer.

With my loneliness Minister hat on, I must add that getting people active, where that means people being connected, is also vital, and the enjoyment and sense of belonging that can come from taking part in sport and physical activity can be a huge part of that. Real change is already happening in that regard. As part of the NHS long-term plan, NHS England is hiring 1,000 new advisers to expand social prescribing and help patients to lead fitter, healthier and happier lives. About 50% of GP appointments are not directly related to medical conditions, and pills are prescribed. Evidence shows that referrals to, for instance, exercise classes, sports groups or, indeed, ballroom dancing classes can greatly help people’s health and wellbeing.

However, I want to go further, and work with ministerial colleagues to use the power of sport to make lives better. Physical activity can help us in so many ways. Getting more people walking or cycling reduces congestion, improves air quality and can revitalise our high streets. Sport can bring people together and reduce social isolation, and the discipline and teamwork that it encourages can also be an important tool in cutting reoffending rates in the criminal justice system.

My second priority is protecting the culture and integrity of high-level sport. What matters is not just what we do to win medals and create sporting success, but how we go about it. It cannot be right for athletes such as Kelly Sotherton to receive their medals six years late and behind closed doors because the systems are not right. Since taking up my role, I have had discussions with UK Anti-Doping, UK Sport, the World Anti-Doping Agency and representatives of athletes in order to understand what has gone wrong in some quarters, and to make the UK’s position clear.

How can we inspire more people through sport by preserving and strengthening its integrity? People must have faith in sports that they know and love. Our athletes deserve to know that they are competing on a level playing field. We must continue to operate robust anti-doping and governance regimes, both domestically and internationally. We must continue to lead the way.

[Mrs Helen Grant (Maidstone and The Weald) (Con)]

My hon. Friend is making a superb speech and an important point. Does she agree that if fans cannot trust what they see, the integrity of sport will be permanently damaged, and that we need a multi-agency approach, information sharing and, very importantly, much more player education, so that those who are tempted to cheat know that they will be caught and punished?

[Mims Davies]

My hon. Friend has walked in my shoes in this role, and she knows how important that issue is. When I have spoken to athletes, there has been compelling evidence that the integrity of their sport, the hard work that they demonstrate, and everything that they do to lead the way is undermined when people feel that sport does not have the integrity that they hold so dear.