Business and the Economy

Debate between Rosie Wrighting and Jerome Mayhew

Wednesday 21st May 2025 Commons Chamber

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

What a great speech to follow. I have an ambition to reach 25 minutes, so here we go. I should start by making reference to my entry in the Register of Members’ Financial Interests. I was challenged by a Labour Member—I am not quite sure which one—and I should declare my background in entrepreneurialism. I ran an SME and then created something called an employee ownership trust, having employed well over 1,000 people. I am also a director of a farming company, which will perhaps have some relevance to my later comments.

This has been a very lively, interesting and well-informed debate—I have certainly enjoyed it so far—and it has been interesting in what it has revealed about Labour Members and Opposition Members. We have had no fewer than three academic economists speaking from the Labour Benches and we have had businesspeople with real-life experience of the economy speaking from the Opposition Benches. One might think, “Well, surely economists know lots about the economy.” You would have thought so, Madam Deputy Speaker, but if we look at how the Government have responded since 4 July, with their obvious surprise at business confidence going through the floor, we begin to see how out of touch academic economists can be when faced with the facts of the real economy.

It is undoubtedly the case that business confidence has collapsed. The BDO optimism index has now sunk—this is the latest figure—to 91.36%. What does that mean? What it really means is that it is the lowest since the entire world economy was shut down by covid. Looking at any one of a number of indices, both business confidence and consumer confidence have gone down massively as a result of Labour’s election. That prompts the question why there has been such surprise on the Government Benches that their actions have been so ill received by the people who drive the economy. One of the reasons is that the country as a whole—and businesses in particular—was actively misled by Labour in the run-up to the general election. We were all told that Labour had no plans for tax rises beyond those that had already been announced. We were all told that Labour’s plans were fully funded and fully costed and that they did not require tax rises above those set out in the manifesto.

[Rosie Wrighting]

As someone with a business background and who worked in a large international business before coming to Parliament, I think the previous Conservative Government misled businesses when they promised them a Brexit that was going to remove red tape, but which actually created barriers. Does the hon. Gentleman agree?

[Jerome Mayhew]

I am grateful for that intervention. I joined this House in 2019, but the original Brexit debate had hyperbole on both sides. We had Project Fear saying we would need an immediate fiscal event as soon as we had the referendum, but that did not take place. Growth has actually continued since the referendum back in 2016. In fact, growth in the United Kingdom has outpaced that of Germany, France and Italy, and, for that matter, Japan. There were a lot of arguments, both one way and the other, over the likely consequences of Brexit. My takeaway is that, overwhelmingly, it has not made that much difference to the world economy or to Britain’s relationship with the world. There have, undoubtedly, been some trade frictions, and those have been particularly acute for SME import/export—I recognise that. But overall, trade has continued, and we have actually outperformed our European big economy neighbours.