Business and the Economy
Debate between Rosie Wrighting and John Cooper(2 weeks, 1 day ago)
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John Cooper (Dumfries and Galloway) (Con)
As a member of the Business and Trade Committee, it has been a privilege to traverse this land from Exeter to Belfast and from Glasgow to Cardiff to speak with people on the frontline of business. They are a doughty, resilient lot, doing amazing things; Britain’s got talent, but heads are going down. The barrage of red tape is taking a toll. Costs are up, and I must reference the speech from the hon. Member for Loughborough (Dr Sandher), which probably owed more to the boards of the Globe theatre further along the Thames than to this place. In his highly colourful speech, I was not quite sure whether he was blaming Mrs Thatcher or gas prices for high energy bills, but he should really look towards his own Secretary of State for Energy Security and Net Zero, because much of the increase in energy prices, which hammer businesses right across this country, comes from carbon taxes applied by this Government.
Critically, all this leads to expansion plans being shelved, as confidence slides. That means fewer jobs, especially for young people and those chasing that all-important first job. This Government’s boast is that they are putting money into working people’s pockets. Setting aside the questionable veracity of that claim, there is no doubt that if someone loses their job, or if they do not have a job in the first place, there is no extra money in their pocket.
What this Government are creating is a hostile environment for some sectors. Yes, there are millions of pounds—maybe billions—for steel, plenty for unionised train drivers and no-strings pay boosts for NHS staff, but what about agriculture, which is the key driver of the economy in rural Dumfries and Galloway, my constituency? Farmers and many associated businesses might just about survive Labour’s urban-centric indifference, but the active harm it is doing by taking steps such as the upping of inheritance tax and the driving down of agricultural property relief is a disaster.
The consequences of Labour’s avaricious increase in employer national insurance contributions are all too real. The Usual Place is a Dumfries charity that does amazing work helping young people with a host of mental and physical issues move into real jobs in catering. It is cutting back on those jobs because extra national insurance contributions put a bounty on each employee’s head, meaning jobs gone and life chances maimed. I hope the charity will celebrate its 10th anniversary next month, but Labour is doing nothing to help it get there.
At the other end of the spectrum, I spoke this week with a major firm whose payroll supports a five-figure number of employees. It has a strong social conscience and tries to tap into the huge cohort of economically inactive Britons and get them into the world of work, with all that that means for their pay packets but also for the intangibles such as the self-esteem and dignity that work affords. It calls itself a gateway employer, proud to be the first rung on the jobs ladder for thousands, but it is aghast at Labour’s anti-business approach. Its increased bill for extra national insurance contributions is eye-watering, and now it faces the thicket of rules and regulations that is the Employment Rights Bill—the Deputy Prime Minister’s love letter to the unions. The imposition of day one rights means that a taking a chance on employees with poor qualifications and a poor employment history, or perhaps ex-offenders, is much more risky for the firm. It knows—as do myriad other businesses, large and small—that it is less likely to recruit, while elements of the legislation are designed instead to swell the ranks of the increasingly restive trade unions.
We are through the looking-glass with this Government’s unbalanced approach to business. Black is now white.
Rosie Wrighting
The hon. Member for Dumfries and Galloway (John Cooper) is talking about the feedback that we heard on the Business and Trade Committee. Does he recognise that businesses also fed back about the political uncertainty under the previous Government and how that made it very difficult to create an environment in which they could expand?
John Cooper
The hon. Lady is a doughty campaigner on the Business and Trade Committee. Unquestionably, mistakes were made. We know that and we have been through it before, but this Government have been in charge for 10 months now, and we see inflation rising and jobs slipping away.
As I said, we are through the looking glass: trade deals are bad, except when they are good. The Secretary of State for Environment, Food and Rural Affairs last week criticised the Conservatives’ Australia and New Zealand deals for hitting farmers, while saying that his Government’s US deal protects farmers. The US deal put the welly boot into beef farmers, who face cheap imports here and US quotas over there that they just cannot fulfil.