Reducing Costs for Businesses

Naz Shah Excerpts

Tuesday 11th January 2022 Commons Chamber

[Naz Shah (Bradford West) (Lab)]

Throughout the pandemic, a mixture of lockdowns, local restrictions and Brexit have put businesses under increased pressure. According to the CBI, the UK’s GDP went from +1.4% in 2019 to -9.8% in 2020. This has meant that businesses and families have to deal with a financial crisis worse than that of 2009.

During the height of the pandemic, while the rest of the country emerged out of the second national lockdown, Bradford, among other northern cities, was placed in the highest tier of restrictions. This meant that businesses in northern cities such as Bradford were in restrictions and localised lockdowns longer than those in other parts of the country. The impact of this continues to hinder business recovery and livelihoods as we start to emerge out of the pandemic. A survey conducted by Bradford Council to measure the economic impact on businesses found that 94% of businesses in the retail, hospitality and leisure sectors bore the brunt in the early months of the pandemic. Inflation is also a considerable concern for many businesses in my constituency. According to the Federation of Small Businesses, 78% of small businesses face costs arising from it. It is therefore clear that the Government cannot go back to their pre-pandemic business plan. I have said this before and I will say it again: supporting local businesses means supporting the workers, families and people in our communities. Local businesses are not just the backbone of our economy but a lifeline. The Government must acknowledge the disproportionate impact that the further localised restrictions had on local businesses and economies.

In October, I asked the Government to put a freeze on business rates, which would benefit sectors such as retail and hospitality. They must increase the small business rate relief to help them offset the rise and the cost of inflation. The Government cannot be serious about business if they fail to level up business opportunity and sustainability in the northern cities, such as Bradford.

If the Government are serious about economic growth and have a plan for levelling up, they cannot abandon Northern Powerhouse Rail. A through line and one stop alone would boost Bradford’s economy by £30 billion over a decade. It is clear that nothing short of an industrial strategy will give businesses the trust and confidence to invest in the long term. We cannot fulfil our ambitions for Britain without the plan for business succeeding. Bradford is the litmus test.

I say this time and again, but we cannot have an economic strategy without having Bradford at the heart of the Government’s levelling-up programme, certainly across the north. The Government need to row back on their decision on NPR. I know that Bradford is bidding to be the city of culture for 2025, and that we have put in an application for a hospital. Bradford cannot be left the way that it has been. I would welcome a meeting with the Minister to discuss in further detail my constituents and the city of Bradford.