Employment Rights Bill

Debate between Saqib Bhatti and Kevin Hollinrake

2nd reading
Monday 21st October 2024 Commons Chamber

[Kevin Hollinrake]

My right hon. Friend is absolutely right. There speaks somebody who has actually run a business and understands the impact on a small employer. That is why we say there should be a carve-out, certainly for small and micro businesses.

We have to ask ourselves this: if the Government are not listening to businesses who “pull the whole cart”, who are they listening to? I think we all know the answer to that. A consultation is not five minutes inside No. 10 and a photo opportunity. Proper consultation is working with business, listening, taking your time and not rushing things—the exact opposite of what the Government have done. We know why that is. The Deputy Prime Minister made a misguided promise to Labour’s trade union paymasters that legislation would be introduced within 100 days. Despite 100 days of gloom and doom, talking the economy down and wrecking business confidence, they managed it—just.

The Government are not even listening to their own legal experts. Only last week the Attorney General said:

“excessive reliance on delegated powers, Henry VIII clauses, or skeleton legislation, upsets the proper balance between Parliament and the executive.”

Because the Bill is such a rushed job, it takes swathes of delegated powers, including Henry VIII powers, meaning the final policy will be decided later at the Secretary of State’s whim—not now by Parliament. Legislating that way is causing real concerns for businesses today. The Deputy Prime Minister and her colleagues preach stability, yet in the same breath they are causing instability, uncertainty and falling confidence at a cost of jobs and investment today. There are already 58,000 fewer payroll jobs than when Labour took office. Confidence levels at the Institute of Directors on future investment intentions have dropped from plus 30 in June to minus six today. The Government are planning 30 consultations on the measures in the Bill. They should have taken place before the Bill was introduced, so the legislation could be precise about what it will do.

[Saqib Bhatti]

I thank the shadow Secretary of State for giving way. He talks about trade unions. I have just seen a news update on the Unite union’s Birmingham hotel and conference centre being investigated by the Serious Fraud Office. The total cost was £112 million, but it has now been valued at £29 million. Who will hold the trade unions to account in the Bill?

[Kevin Hollinrake]

My hon. Friend makes a strong point. That certainly needs looking at very carefully.

As the Government’s attempt at business consultation has clearly failed, and as no one on their Front Bench has any business experience, I will draw the right hon. Lady a picture of what the Bill actually means for businesses.