Hair and Beauty Sector: Government Policy

Saqib Bhatti Excerpts

Wednesday 23rd April 2025 Westminster Hall

[Saqib Bhatti (Meriden and Solihull East) (Con)]

It is a pleasure to serve under your chairmanship, Ms McVey. I thank my hon. Friend the Member for Hornchurch and Upminster (Julia Lopez) not just for securing the debate, but for making eloquent arguments about the hair and beauty industry and the broader impact of the Chancellor’s damaging Budget last year, such as the impact on nurseries and its knock-on effects. Almost a quarter of a million people are employed in the industry, and it is a disproportionate employer of women and young people. In the short time I have in which to speak, I will limit my comments, because a lot has already been said by my hon. Friend and other hon. Members.

I had the pleasure of visiting the award-winning Aesthetics Hair and Sarah Bowron in Solihull and she eloquently put a lot of the arguments to me. This industry—these businesses—might have never contacted their MP before, because they have never felt the need to do so. Like many small businesses, they just get on with the job in front of them. I am sure that the Minister recognises this, but I am not sure that his colleagues in the Treasury do, so the very first message I would share with him is that small businesses are not there to be squeezed till the pips squeak. There is real concern that the rise in NICs, the reduction in the tax threshold, the impact on part-time workers, the reduction in rates relief and the impending Employment Rights Bill, as well as, of course, the highly competitive market in which the industry operates, will have huge impacts. We have already heard about the impact on the hiring of apprentices.

When there are disincentives on business, such as higher taxation, a much more competitive business environment or higher regulation, it is inevitable that businesses will have to look at where they can cut costs. Young people who come into apprentice positions, who have less training and are yet to learn the skills of the trade, so to speak, are the easiest ones to cut, because the businesses have to be able to continue to operate. I make no comments about his hairstyle or anything like that, but I am sure that the Minister will acknowledge that they are skilled people who do skilled work, and an apprentice cannot just be trained overnight. It takes time to do so.

Hearing from my constituent was certainly eye-opening and helped me to understand the impacts on their businesses. The fundamental point is that businesses in that competitive environment are being forced into a situation where hairdressers go for self-employment status, which means that they are below the VAT threshold, with less return for the Exchequer. That cannot be what the Chancellor of the Exchequer intended when she made her statement.

I have some thoughts about what the Chancellor was trying to do—basically, taxing everyone to appease some of the trade unions—but we will not get into all that right now. The reality, however, is that small businesses are the ones suffering. The impact has been huge. I also share the concern about the impact on high streets and the extended impact on tax avoidance and tax evasion, which of course we are very worried about.

Employment Rights Bill

Saqib Bhatti Excerpts

Report stage
Wednesday 12th March 2025 Commons Chamber

Good work is good for people. It provides dignity. Work should provide security, not uncertainty. It should be a source of pride, not precarity. It should be a means of building a good life; it should not just allow people to scrape by. That is what the Bill stands for, and what this Labour Government stand for and will fight for, and I am proud to support it.

[Saqib Bhatti (Meriden and Solihull East) (Con)]

I would like to address the hon. Lady’s point that being pro-worker is pro-business. We Conservative Members believe that. The only problem is that this legislation is not pro-worker or pro-business. It will drive up unemployment and the regulation of businesses. The workers whom she purports to represent and support are exactly the people who will suffer as a result of this legislation. We Conservative Members absolutely get that.

I will talk in favour of amendments on the political fund, new clause 88 and amendments 291 and 299, and will refer to access to the workplace. I refer Members to my entry in the Register of Members’ Financial Interests, not least because I worked in a small family business and retain an interest in the family business. Also, before being elected, I was president of the Greater Birmingham chamber of commerce, one of the largest and oldest chambers of commerce in the country and the world, representing thousands of small businesses.

Let us be in no doubt: this is a terrible piece of legislation. It is a love letter from the Labour Government to trade unions, and it will lead to a trail of socialist carnage and destruction that will leave the country reeling for many, many years to come. It harms business, undermines employment, will drive up unemployment and will do nothing to increase growth or investment in the United Kingdom, the purported aims of the Government. In fact, the Government’s original impact assessment, when the Bill was first introduced, talked about the cost to business being about £4.5 billion, reaching almost £5 billion. We are yet to see the impact of the new amendments—a further move to a more socialist version of the Bill—and their cost to businesses.

The right hon. Member for Birmingham Hodge Hill and Solihull North (Liam Byrne), who is a friend and neighbour, talked about the modern workplace. I agree that the workplace has changed since the 1950s and even the 1970s, but the Bill will take the workplace back to the 1970s. It fails to achieve a balance between working people and businesses, and a relationship between trade unions and businesses. In fact, it goes way, way down the line in favouring trade unions, and it makes it much harder for people to run businesses. When I was president of the chamber of commerce, I was perfectly fine with trade unions and having good relationships with them. I had friends who joined trade unions, even though they were not in a unionised workplace. I encouraged it. They needed representation, and I thought it was a good thing to do. I have no problem with trade union relationships in the modern workplace, but a balance must be achieved.

A comment was made about economic units. Economic units are the businesses that create economic growth. Of course workers are really important. My employees were really important to me, because my business could not run without them. The majority of business owners recognise that. Conservative Members recognise that there is a symbiotic relationship between the people who run businesses and the employees who work in them. Those individuals running businesses are drivers of economic change. They are innovators who come up with the ideas. They are the risk takers who turn a profit, which pays the taxes that fund our public services. Unfortunately, the Bill does not recognise any of that. In fact, businesses are anxious and are worried about what it is introducing.

[Perran Moon (Camborne and Redruth) (Lab)]

No, they are not.

[Saqib Bhatti]

They are absolutely are. The Deputy Prime Minister, when challenged to name a business that supported the Bill, could not do so. [Interruption.] I am sure the hon. Member will have an opportunity to speak on the matter in his own way.

[Joe Robertson (Isle of Wight East) (Con)]

Does my hon. Friend agree that the Bill is also badly drafted? Even if Members support the content, it is a badly drafted Bill that was brought before the House far too quickly. Such a huge Bill of this nature should have had time. It is hardly surprising that the Government are tabling so many amendments, because they are still writing it.

--- Later in debate ---

[Saqib Bhatti]

I could not have made the point better. The number of amendments, and the cost and regulatory burden being placed on businesses, large, medium and small, have worried many businesses, not just in my constituency but across the country. This will do immense harm, and it will take a long time to fix the mess that has been created.

[Lincoln Jopp (Spelthorne) (Con)]

There are 24 Members sitting on the Government Benches. Would my hon. Friend like to issue an open invitation to them to name a single small business that has been in touch to say that it supports this legislation?

[Saqib Bhatti]

I am more than happy to extend that invitation. Madam Deputy Speaker may get annoyed with me if I take 24 interventions, although I do not see anyone jumping to their feet, so we will take that for what it is.

There is also anxiety about the clauses on access to the workplace. The Government have now gone further and talked about digital access. This is a huge burden to put on small businesses, and it is shameful of the Government wilfully and blindly to ignore their concerns. Labour Members will have to answer many questions from businesses in their communities. Those same businesses contribute to the Treasury coffers and pay for the public services that Labour Members champion. This will be really important, and the burden will of course increase.

Before—and after—the election, and during the passage of this legislation, Labour has said time and again that it was listening to businesses. Clearly that is not the case. Businesses continue to feel that they have been led up the garden path by this damaging Labour Government.

[Johanna Baxter]

We in Labour have listened to business. Ann Francke of the Chartered Management Institute has gone on record as saying:

“The Employment Rights Bill represents a significant step forward in improving conditions for the UK’s workforce.”

[Saqib Bhatti]

The hon. Lady should speak to the Deputy Prime Minister, who failed to name a single supportive business when challenged to do so.

In the short time I have left, I will make a couple of quick points. Labour Members keep saying that the Bill will lead to fewer strikes. It will not; it makes it easier to strike. In fact, the Transport Secretary today said that strikes will be necessary in the areas covered by her portfolio. The Bill will make it easier to strike, not harder. [Interruption.] Labour Members are exercised; I am sure that they will get a chance to comment. The country is at risk of being turned into a 1970s-style striking country. This Bill should be a wake-up call for all working people and businesses that will be undermined. As we have heard from Members from across the House, only the Conservatives will stand up for businesses.

I have questions for all Labour Members. People ask what this Labour Government stand for. They undermine businesses and working people, so that is a legitimate question. I fail to see who, other than trade unions, the Labour party now stands for. When people asked what we Conservatives stand for, Margaret Thatcher had a very good answer. She said that the Labour party—[Interruption.] The hon. Member for Paisley and Renfrewshire South (Johanna Baxter), who spoke before me, read out a quote; I think I should do so as well. Margaret Thatcher said:

“The Labour Party believes in turning workers against owners; we believe in turning workers into owners.”

[Antonia Bance (Tipton and Wednesbury) (Lab)]

I proudly draw attention to my membership of the Unite union and my declaration in the Register of Members’ Financial Interests, and I thank my friends at the GMB and ASLEF for their support of my election campaign.

I am in this place to stand up for working people, and that is what I will do. The best protection anyone can have at work is the support of their workmates, organised together in a union, and bargaining with management, sitting down with them as equals at the table, and making sure that the business grows and thrives, and that everyone takes home a fair wage. This Bill and the Government amendments will make it easier for working people to choose their union, be represented by their union, and get all the benefits of being in a recognised union, so that we have an economy where better terms and conditions at work go hand in hand with the growth that we need. Let us be clear: this Bill supports growth. It could add £13 billion to the economy through improvements to employee wellbeing, reduced stress, improved national minimum wage compliance, reduced workplace conflict, and increased labour market participation. That is the type of growth that we want.

Stellantis Luton

Saqib Bhatti Excerpts

Wednesday 27th November 2024 Commons Chamber

[Jonathan Reynolds]

I am grateful that we have been able to get the right hon. Gentleman some time with Ministers regarding the serious situation affecting his constituents. Members of this Government will always take that seriously, as I believe Ministers did under the previous Administration. Vehicle excise duty is a question for the Treasury and the Chancellor, but the differential that exists from changes in the Budget between internal combustion engines and electric vehicles is one of the demand incentives that now exist within the system. Everyone would recognise that the Government should do everything they can to support industry during the transition, and such measures are part of the answer. If the right hon. Gentleman has specific concerns, we will always be willing to listen to those.

[Saqib Bhatti (Meriden and Solihull East) (Con)]

The Secretary of State was robust in his criticism of the previous Government and their approach to the zero emission vehicle mandate, but was he one of the 141 Labour MPs who voted for the ZEV mandate?

[Jonathan Reynolds]

Let me be clear: we worked constructively on the ZEV mandate that the previous Conservative Government put forward. I believe in incentives towards the transition. I am not arguing against that—I reacted to the sheer brass neck of those on the Opposition Front Bench, who somehow did not even recognise that it was their policy that we were willing to change, and presented the argument as if it was the other way round. I will be robust in saying that the facts are as they are when those on the Opposition Front Bench are not willing to accept them.

We want this transition to work. This is not about the destination or even the thresholds; this is about the flexibilities, how the policy operates, and what that means for market conditions in the United Kingdom. That is an entirely reasonable and proper response to what we found walking through the door as a new Government, and I see no reason why people cannot pragmatically get on board and support that.

Business Confidence

Saqib Bhatti Excerpts

Tuesday 15th October 2024 Westminster Hall

[Saqib Bhatti (Meriden and Solihull East) (Con)]

It is a real privilege to serve under your chairmanship, Mrs Harris. I congratulate my hon. Friend the Member for East Grinstead and Uckfield (Mims Davies) on securing this important debate in a very timely manner. It is so timely because the more I speak to businesses or business organisations, the more the phrase “holding pattern” comes up. That is down to of the uncertainty that has been created in the first 100 days of this Labour Government. Frankly, a lot of business organisations and businesses thought that the promise of change meant change for the better. Clearly, that was not the case, because, as we have just heard, the business confidence monitor of the Institute of Chartered Accountants in England and Wales—I am a chartered accountant by profession—has dipped. That is consistent with what we are seeing across the patch.

Politicians often refer to businesses and small businesses, which I used to cater for—when I was president of the Greater Birmingham chambers of commerce, the majority of our members were small businesses—as the lifeblood of our communities. That is a very easy phrase to put out there, but it has to be more than a slogan. They are the businesses that define what our communities stand for. They are the ones that create jobs, take risks and create the real wealth.

Like my hon. Friend the Member for East Grinstead and Uckfield, I welcome the investment, but I think the figures of the new and old money will be disputed— I am sure we will do that in the main Chamber and in here. As I have said before, the Government’s successes will be the country’s successes, so we welcome that level of investment, but investment only comes when businesses have confidence to invest.

It is about not just domestic investment but international investors. The Labour Government often talk about what they have inherited. As I was the Minister responsible for tech and the digital economy up until the election, I know that we had the third most valuable tech economy in the world. We had some of the highest levels of investment and were the fastest-growing in the G7. That was all defined by the fact that people felt confident enough to invest. Weeks before the general election was called, we had about £2.5 billion come in in one week.

I want to stress the importance of business confidence and economic confidence. Damage is done when the Prime Minister talks about there being worse to come. On the back of the political choices the Government are making, there may well be worse to come, but they will not be able to deliver on the economic growth and public sector investment they want if the private sector does not believe that they can do it.

There has been a lot of chatter about moving the goalposts on fiscal rules. There is no magic money tree, as has been said. There is no definite way of putting money out there without the chickens coming home to roost. There is always a price to be paid, and the burden will be borne by the businesses of the United Kingdom. They will be the ones that will be taxed. It is incredibly worrying that we have not had clarity on the capital gains issue. I think there was a report yesterday, but I will wait for the Chancellor to come to the Dispatch Box to confirm that capital gains will not rise, because that will affect investor sentiment.

National insurance is very much in the media today, and that question is really hampering because if employers have to pay more national insurance, the cost will be borne by consumers. That will affect demand and recruitment and labour decisions—I say labour with a small l, but there might possibly be a big L involved at the next election if there is such an impact.

My community is very entrepreneurial and there are businesses there, as well as businesses in my business forum, which all hon. Members are welcome to join. Britain is a great place to do business, and it is a great place to invest and grow, but that is despite this Labour Government.