Seasonal Work

Sarah Olney Excerpts

Wednesday 10th December 2025 Commons Chamber

[Sarah Olney (Richmond Park) (LD)]

It is a pleasure to speak in this debate. Training, hiring and retaining a skilled workforce are issues that affect businesses across the country. Many businesses, such as those in the farming and agricultural sectors, depend on recruiting the right people at the right time. Obstacles to hiring seasonal workers can have a significant impact on businesses, which are already struggling with sky-high energy bills, having trouble recruiting the workforce they need and facing high costs in trading with Europe.

We are seeing a practically stagnant economy, with business confidence down and unemployment up. Unemployment is particularly prevalent among young people, many of whom traditionally find their first jobs in the hospitality sector, which is the largest employer of young people. However, the sector is struggling to employ new workers. The damage being done to the prospects of our youth, as they struggle with unemployment, will be detrimental to the broader economy in the years to come.

Many of those challenges began under the last Conservative Administration. It was the previous Government who undermined farming, agriculture, hospitality and so many other sectors that are dependent on seasonal work by negotiating failed trade deals with the EU, Australia and New Zealand and breaking their promise to reform business rates. Their record is a dispiriting picture of low growth, high interest rates and falling living standards.

People endured years of Conservative mismanagement, which is why it is so disappointing that this Government have wasted the last 18 months by failing to pursue policies that promote growth and by imposing an unfair national insurance jobs tax that has stifled business investment.

[Steve Darling (Torbay) (LD)]

In the west country, we have seen an icy chilling effect from the NICs hike on our hospitality and tourism industry, particularly in Torbay. The Torbay Coast & Countryside Trust, which looks after some of our beautiful natural spaces, has faced a £100,000 cost from the NICs hike, which has forced it to close its doors and take a step into the dark. Does my hon. Friend agree that the Government need to explore the impact of the NICs hike on this fragile sector of our economy to see how they can step in to support it?

[Sarah Olney]

It is tragic to hear of the closure of my hon. Friend’s local organisation. Not only will local people be deprived of the opportunity to enjoy the services it provided, but young people will be deprived of the opportunity to take on their first job.

On the Employment Rights Bill, the Liberal Democrats have been clear that we welcome many of the principles underpinning the legislation, but we have been pushing the Government to make crucial improvements to ensure that it properly delivers for workers and small businesses. We strongly believe in giving all workers security over their working patterns, and we are deeply concerned that too many struggle with unstable incomes, job insecurity and difficulties in planning for the future. On flexible work, we will continue to advocate what we think would have been a fairer and less onerous system, based on giving workers a new right to request fixed hours, which businesses would not be able to unreasonably refuse.

On seasonal work, we are glad that, thanks to the work of the Liberal Democrats in the House of Lords, the Government have made significant concessions for the benefit of businesses and workers, placing a statutory duty on the Secretary of State to consult with key stakeholders before exercising powers to specify what a “temporary need” is in relation to the provisions on the right to zero-hours contracts. We are pleased that the Government have listened to Liberal Democrat calls for clarity by providing examples of how an employer could approach seasonal demand while complying with the new right to guaranteed hours. These provisions, secured by Liberal Democrat peers, will support workers by giving them more control over their working hours, while ensuring that businesses are properly consulted and given the resources to navigate this new legislation.

This weekend, towns across the country mark Small Business Saturday, but many small businesses will have struggled to celebrate, given the challenges that they face. Recent Government decisions, including the devastating business rates hike in last month’s Budget, are causing huge damage to small hospitality firms, with many now considering whether their business remains viable.

[Edward Morello (West Dorset) (LD)]

Tourism is vital to the economy of West Dorset and hospitality is one of the largest employers. Our population soars by 40% during the summer months and those businesses require seasonal workers. Given all the headwinds my hon. Friend outlines that face the high street and UK hospitality, does she agree that the Government should reward and look after the sector with a 5% drop in VAT?

[Sarah Olney]

My hon. Friend is right; the hospitality sector has been disproportionately impacted by the hike in national insurance contributions because it generally employs people on lower wages for a shorter period of time. In particular, the decrease in the threshold has been damaging to many businesses that have that kind of employment pattern.

My hon. Friend is right that what we really need to do is boost growth and demand. We think that that could happen by introducing a 5% decrease in VAT for hospitality businesses. We need the Government to give hospitality the tools it needs to grow and help boost the wider economy. Thousands of venues are facing steep and unprecedented cost rises, making this a critical moment for the hospitality sector. I urge the Government to tackle the cost-of-doing-business crisis by adopting our proposal on VAT.

[Dr Luke Evans]

How much would the 5% VAT policy cost?

[Sarah Olney]

The cost of the VAT cut could be met by—

[Dr Evans]

How much is it?

[Sarah Olney]

I believe, off the top of my head, that it is about £9 billion. We think that that could be met by the money that we have lost from leaving the European Union—from Brexit. As a result of leaving the European Union, £25 billion a year has been lost to the Treasury thanks to the Conservatives’ botched Brexit deal. There are so many better ways that we could have been spending the money that the Conservatives’ botched Brexit deal has cost us.

Pubs, bars, cafés and restaurants across the UK that rely on seasonal workers need all the support they can get, so I sincerely hope Ministers will listen. Today’s motion calls for the abolition of business rates, and the Liberal Democrats agree that we need to see a complete overhaul of that unfair and damaging system. In 2019, the Conservative Government promised a fundamental review of the business rates system, which they failed to deliver. In their recent Budget, the Government committed to rebalancing business rates, but we saw nothing of the sort. UKHospitality says that the average tax increase for hospitality will be 76% over the next three years. Meanwhile, warehouses, offices and large supermarkets will see bills go up by just 16%, 7% and 4% respectively. The Chancellor said that she is looking to introduce permanently lower business rate multipliers, but the painful reality is that the new higher valuations will wipe out any benefit that businesses might have seen.

The increase in the minimum wage announced by the Government in the recent Budget is welcome and will support millions of low-paid workers, but it is not just workers who need a boost; it is small businesses too. Unless businesses are able to grow, there is a danger that the long list of cost pressures they face will result in fewer jobs being available overall.

[Anna Dixon]

When I have talked to small and medium-sized enterprises in my constituency of Shipley, they have welcomed the announcement that there will be free apprenticeship training so that they can help the next generation of young people get into higher-skilled jobs and have careers. Does the hon. Lady agree, and does she support the Government’s announcement about apprenticeships as part of the youth guarantee?

[Sarah Olney]

I thank the hon. Lady, my colleague on the Public Accounts Committee, for her intervention. She is absolutely right. I 100% and wholeheartedly welcome any boost to apprenticeships and that announcement in the Budget. However, there has been and continues to be caution over whether there will be sufficient business growth for high-skilled jobs to be created, which is what will enable our young people to progress in their careers.

Businesses from all sectors across the UK continue to struggle with high energy bills, which is compounded by the burden of the NICs rise and concerns about the effect of certain aspects of the Employment Rights Bill on their monthly employment costs. The cost of employment has risen significantly over the last year and there have been nearly 70,000 hospitality job losses just since last October. Our small businesses face huge challenges and many are already struggling to absorb rising costs. Unless more is done to support them, vital entry-level jobs, which make an essential contribution to the culture and character of our local communities, may be lost.

As the motion looks to examine the challenges facing businesses, a perhaps unsurprising omission is the absence of any reference to the damage caused by the last Government’s failed Brexit deal. The appalling agreement negotiated by the Conservative party has been a complete disaster for our country and particularly for small businesses, which are held back by reams of red tape and new barriers to trade, costing our economy billions in lost exports.

The dismal impact of the Conservatives’ terrible Brexit deal is becoming increasingly clear. A recent survey of 10,000 UK businesses found that 33% of currently trading enterprises experienced extra costs directly related to changes in export regulations due to the end of the EU transition period. Small businesses have been particularly badly affected, with 20,000 small firms stopping all exports to the EU. A recent study has found that goods exports have fallen by 6.4% since the trade deal came into force in 2021.

While the Liberal Democrats welcome the steps, hesitant as they are, that this Government are taking to rebuild our relationship with the EU, I urge them to recognise that this should only be the start of the move towards a new bespoke UK-EU customs union, which this House voted for just yesterday. Independent analysis has shown that a closer trading relationship with the EU would boost GDP by 2.2% and would bring in roughly £25 billion of extra tax revenue every year, which would be crucial in fixing the public services that the Conservative party left broken.

[Simon Hoare]

I am not suggesting that the hon. Lady should have been hanging on my every word yesterday, but she was in the Chamber during that debate. I would not call 100 votes in favour and 100 votes against a win. A ten-minute rule Bill will go nowhere. Why her leader jumps up and down on social media as if he has just introduced Magna Carta, I fail to understand. Did she not hear me when I said that in conversations with the European Union, the EU itself will not entertain a new customs union with the United Kingdom? It wants to evolve the agreement that we have, as per the agreement, not have groundhog day. Which bit of that does her party not understand, or are the Liberal Democrats just ignoring it because it is convenient to do so?

[Sarah Olney]

I listened carefully to the hon. Gentleman’s speech yesterday, which I thought he delivered very well. I am grateful to him for putting the points against our Bill. He is absolutely right: it was 100 on each side. However, it passed with the help of Madam Deputy Speaker and it has progressed to Second Reading. I take his point, but I say to him: how does he know? If there is a political movement for change in this country, a political will towards further integration with the European Union and a political will in favour of a customs union—

[Jayne Kirkham]

Will the hon. Member give way?

[Sarah Olney]

I will finish this point, if I may. I think the EU would welcome that and would be very keen to have a conversation on that basis.

[Simon Hoare]

rose—

[Sarah Olney]

I will give way to the hon. Member for Truro and Falmouth (Jayne Kirkham) and then I will come back to the hon. Gentleman.

[Jayne Kirkham]

I thank the hon. Member for giving way. Does she not agree that the trade agreement that was signed earlier this year and the sanitary and phytosanitary agreement, which the EU now has a mandate to discuss and which will hopefully be through by 2027, will make a massive difference to a lot of the exporting that is done? We are getting there; it takes time, but we are getting there.

[Sarah Olney]

That approach is very piecemeal and it is taking time. If we had a more wholehearted approach to a customs union, we would be able to unlock all sorts of benefits that are not possible with a piecemeal approach.

[Simon Hoare]

I suggest that a new customs union might take a little bit of time—maybe just a day or two. The hon. Lady asked a perfectly legitimate question: how do I know? In direct response to her party’s motion, I raised the issue directly with representatives of the European Union, and the answer was, “No, thank you.” That is what I know. I was not speculating; it was knowledge.

[Sarah Olney]

I am grateful to the hon. Gentleman for sharing that knowledge with us all. Obviously, that is something to reflect upon. That is why we are pressing the Government. It is the Government who hold the purse strings and the pen here. It is up to them to make those advances on behalf of the country.

[Antonia Bance]

I will ask this question in a spirit of genuine curiosity, if I may. The trade deal done with the United States earlier in the year by the Prime Minister, the Chancellor and the former Business Secretary, my right hon. Friend the Member for Stalybridge and Hyde (Jonathan Reynolds), guaranteed more than 200,000 jobs in the west midlands at Jaguar Land Rover and in its supply chain. What future does the hon. Member envisage for those jobs in her ideal scenario, where we go back into a customs union tomorrow? What would she say to my constituents and the people in our west midlands region about the prospects for those jobs? Has she thought about that and does she have a plan?

[Sarah Olney]

Our allies in America are becoming increasingly unreliable, and it is absolutely right that we should look elsewhere for our alliances, not just on trade but on defence. Recent moves just this week show us the shaky ground on which our agreements with the US are built. For the long-term future of the car industry in the west midlands and of our whole economy, we need to look to Europe and build up those relationships with our European neighbours, because our partnerships with our allies in the US are becoming increasingly unreliable. If I were one of the hon. Lady’s constituents, I would be looking to the Government to fully investigate other opportunities for trade as well as with the US.

More broadly, as we look at issues affecting the workforce, Liberal Democrats welcome the industrial strategy that this Government have put in place, alongside a funding boost for skills and training. However, this progress stops well short of the fundamental reform we need to see if we are to address the workforce shortages that many industries are facing. British businesses must be able to hire the people they need with the skills they need. A key cause of workforce shortages is ill health. To tackle this deeply entrenched problem, the Government must do more to invest not only in our NHS but in social care, so that people can get the healthcare they need and rejoin the workforce more quickly.

Any business will tell you that the apprenticeship levy does not work, despite the Government’s attempts at reform. Firms cannot get the funding they need to train staff, and hundreds of millions of pounds of funding is going unspent. The Liberal Democrats have long called for proper reform of the levy, replacing it with a wider skills and training levy that will give businesses real flexibility over how they spend money to train their staff. We were pleased to hear in the Budget that more details on the wider youth guarantee and the growth and skills levy package would be announced shortly, but can the Minister provide a timeline for when we can expect to see that detail?

Will the Minister also set out a timeline for the introduction of a youth mobility scheme, which would be beneficial to our economy, easing some of the burdens that the hospitality sector is facing? Businesses across the country, especially our small businesses, are struggling with unprecedentedly high costs, such as the Government’s unfair national insurance rise, sky-high commercial energy bills and a broken business rates system. Struggling businesses mean fewer jobs and lower pay, so it is absolutely clear that we must look for ways to support local businesses and all those who rely on them.