Business and the Economy

Debate between Sarah Olney and Caroline Johnson

Wednesday 21st May 2025 Commons Chamber

[Sarah Olney]

My hon. Friend is exactly right; there are so many things currently holding our small businesses back. The Conservatives failed to reform business rates. We are now looking to the Labour Government to bring forward measures that make it easier for people to set up businesses in their local communities.

Let me be clear: stripping support from many of the poorest pensioners while energy bills are still sky high was the wrong thing to do. I and my Liberal Democrat colleagues have listened to our constituents and have heard from countless pensioners who have been affected by the cut. We have heard warning calls from sector representatives including Age UK and Disability Rights UK, and indeed from many pensioners themselves, regarding the huge damage that the cuts have done. Some pensioners have been put in the position of having to choose between heating and eating.

Back in December last year, the Government admitted that their changes to the winter fuel payments will result in an additional 100,000 pensioners being pushed into poverty.

[Dr Caroline Johnson]

The hon. Lady is talking about the effect of the Government’s winter fuel payment cuts. Does she agree that the cuts were not just cruel and unpleasant for the elderly people who have suffered, but economically illiterate because of the increased cost to the NHS from individuals becoming sick as a result of being cold?

[Sarah Olney]

I am grateful to the hon. Lady for her intervention. I have engaged the Minister directly on this point and shown him examples of how the cuts have directly impacted on pensioners in my constituency very harshly.

The Liberal Democrats voted against the removal of the winter fuel payment to prevent millions of the most vulnerable in our society from losing out on vital support. Following the Prime Minister’s comments earlier today, we continue to call on the Government to reverse the cut in full, to guarantee that it will not be in place by next winter and to ensure that all pensioners who need support will receive it. I ask the Minister for full details of the proposed changes as soon as he is able to give them.

It is not just in their cuts that we hope to see a change of direction from the Government. After the last Government did so much damage to our high street businesses, the Labour Government’s national insurance jobs tax has made things even harder for businesses and their workers. The changes to employer national insurance contributions announced in the autumn Budget are an unfair jobs tax that will hit small businesses, social care providers and GPs. SMEs are the beating heart of our economy. They are at the centre of our local communities and create the jobs that we all rely on. Raising the employment allowance will shield only the very smallest employers, while thousands of local businesses will still feel the damaging impact of the changes. The Liberal Democrats voted against the changes to employer NICs at every opportunity, and I once again urge the Government to scrap these measures.

Even more damaging for our small businesses is our broken trading relationship with Europe. The Conservatives’ botched Brexit deal has been a complete disaster for our country, especially 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 picture of the financial impact of their terrible Brexit trade deal is becoming increasingly clear. While the Conservative party’s motion notes that

“over 200,000 businesses have closed since Labour took office”,

it was under its Administration, in the years 2020 to 2024, that the rate of small business closures in this country started to outpace the rate of new businesses starting up. Since 2019, there has been an average business closure rate of over 12%, outstripping the rate of businesses opening.

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. Another recent study found that goods exports have fallen by 6.4% since the trade deal came into force in 2021.

I welcome the actions taken by the Government at Monday’s UK-EU summit—particularly the impact they will have on our seed potato trade—but I urge the Government to recognise that the deal should only be a first step toward negotiating a new UK-EU customs union, which would ease the pressure felt by so many businesses and boost the economy as a whole.

More broadly, we continue to call on the Government to introduce vital reform to the business rates system. Business rates are harmful for the economy because they directly tax capital investment in structures and equipment rather than profits or the fixed stock of land. Liberal Democrats would abolish the broken business rates system and replace it with a commercial landowner levy. We believe that we need to see a fundamental overhaul—not just tinkering around the edges or sticking-plaster solutions. We are disappointed that, yet again, serious reform of the system has been kicked down the road. We need fundamental reform of business rates if we wish to boost small businesses and high streets and to stop penalising productive investment.

The Liberal Democrats acknowledge that the Government inherited a dire economic landscape, compounded by the challenges posed by an aggressive Russia and an unreliable US Administration, but that cannot be an excuse for the mistakes they are making. People are still struggling with the cost of living crisis, just as small businesses are struggling with the cost of doing business, as energy prices soar, food costs keep going up and mortgage bills remain sky high. The Government must take bold action to boost our economy. We urge Ministers to U-turn on the winter fuel payment cut, scrap the national insurance jobs tax and row back on removing support for disabled people, many of whom need that support to stay in work.

Representation of the People

Debate between Sarah Olney and Caroline Johnson

Wednesday 13th November 2024 Commons Chamber

[Sarah Olney]

The hon. Gentleman will know that the number of incidents of personation—I was just coming to this point—in 2022 was fewer than 13 and no prosecutions have taken place. He may say it is less than 1%, but that resulted in several thousand people being unable to exercise their democratic right to vote in the general election, because of the unnecessary requirement to produce voter ID. There may well be the risk of voter fraud, but it is yet to materialise in any significant way, and we have seen that this measure, brought in to combat that supposed risk, has resulted in thousands of our fellow citizens being unable to exercise their democratic right to vote. We are therefore opposed to the voter ID scheme and continue to call for it to be scrapped.

The shambles of the last Conservative Government created a crisis for democracy in this country with their cronyism, rule breaking and constant sleaze scandals, and public trust in Government is worryingly low. Successive Conservative Prime Ministers acted without integrity and treated Parliament and the people with disdain. The voter ID scheme is just a further example of that. We continue to lead the fight against this deeply unfair, unnecessary and expensive scheme. The impact must not be underestimated. Every vote matters, and we must ensure that we are not preventing people from making their voice heard.

The report published today by the Electoral Commission found that around 4% of eligible people who did not vote said that was because of the voter ID requirement. More in Common found that 3.2% said they were turned away at least once on 4 July. If that was reflected across the UK, that would equate to more than 850,000 people. Of that 3.2%, more than half said that either they did not return or they came back and were still unable to vote.

It is important to note that recent figures from London councils showed that three in 10 Londoners who were turned away from polling stations due to a lack of appropriate voter ID did not return to vote. It is essential that people who have a legitimate right to vote are not prevented from exercising that right. More broadly, voter ID has not impacted all constituents equally.

[Dr Caroline Johnson (Sleaford and North Hykeham) (Con)]

The hon. Lady says that people have arrived to vote in somebody’s name and have been turned away and did not return when asked for ID. How can she be certain that they were the person they said they were?

[Sarah Olney]

I am quoting, obviously, sources from the Electoral Commission and More in Common—organisations that have carried out extensive polling on this question—and people say they were turned away because they did not have the correct voter ID. I think the hon. Lady is quibbling, frankly. There is no doubt that significant numbers of people were unable to vote in this last election who had the right to do so, and that was because of this unnecessary legislation.

Research following the general election indicates that voter ID legislation disproportionately impacts minority ethnic groups, with Hope not Hate reporting that 6.5% of ethnic minority voters were turned away from a polling booth at least once, compared with 2.5% of white voters. Furthermore, Jacob Rees-Mogg, who was a Cabinet Minister when voter ID was introduced, described the law as an attempt to “gerrymander” elections in the Conservatives’ favour. While we cannot know how those who did not cast their ballot would have voted, and so cannot directly measure the effectiveness of that deeply worrying intention, research by the Electoral Commission showed that the clearest impact of the voter ID requirement was in relation to social grade. The specification for accepted forms of ID specifically related to proof of address has disproportionately affected young people and people living in social housing.

We know that the dire economic situation inherited by this Government has required the Chancellor to make tough decisions, as we saw with the recent Budget statement. Given the need for the Government to make spending more efficient, why are they choosing to keep the voter ID scheme in place? The scheme is projected to cost £120 million over the next 10 years. It is a waste of taxpayers’ money, and it is an obvious place where the Government could save money, redirecting it to support some of the most vulnerable in society or to fund vitally needed infrastructure projects.

More broadly, we are supportive of wider electoral reform, and we look to the Government to support our pledges to modernise our electoral system. Electoral Commission research shows that potentially as many as 8 million people are incorrectly recorded on the electoral register across the UK. We should be removing barriers for all voters to encourage voter participation and public engagement. Improvements in the system could be achieved through modernisation of the registration system, such as a requirement on public bodies to share data with electoral administrators to improve the register’s accuracy. Given the huge cost of the voter ID scheme—£120 million over the next decade—could those resources not be better spent in modernising the electoral register and ensuring that all eligible voters are correctly recorded? It is vital that barriers to voting are removed for all eligible voters and that the deeply worrying findings of the Electoral Commission regarding voter registration are addressed.

The Liberal Democrats want to strengthen democratic rights by expanding political and democratic engagement. We want to extend the right to vote to 16 and 17-year-olds. I echo the point made by the hon. Member for Vauxhall and Camberwell Green (Florence Eshalomi) about the additional barriers that voter ID will present to younger voters, once the right to vote is extended to them, because they will find it that much harder to find appropriate ID.

We call on the Government to enshrine the ministerial code in legislation, give Parliament the powers to hold Ministers to account and protect politics from corruption and sleaze. We also want to see this new Labour Government be bold in strengthening the power of local authorities who know best what their communities and towns need.

At the 2022 elections, there were 13 cases of alleged personation investigated, and no further action was taken in any of those cases. Would the Minister not agree that the much more concerning issue is that of an inaccurate electoral register? It is vital that we remove barriers to voting and do all we can to ensure that the 8 million people who are currently not correctly registered are not excluded from casting their ballots. Voter ID, which will cost £120 million over the next decade, is like using a sledgehammer to try to crack a nut. It is a waste of taxpayers’ money.

While I appreciate the steps that the regulations will take to support veterans, they will do nothing to improve accessibility for many of the most affected communities, such as those renting from a social landlord, the unemployed, lower social grades, disabled people and young people. I question why the Government do not remove the barrier entirely, and I urge them to scrap the Conservatives’ undemocratic voter ID scheme altogether.