Summer Jobs
Debate between Tim Farron and Sarah Olney(4 weeks, 1 day ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Sarah Olney
I am terribly sorry, Madam Deputy Speaker, but I did not hear all the hon. Gentleman’s intervention. He said something about unemployment in 2012. That was, of course, very soon after the global banking crash, which had a huge impact.
The state of our economy requires bold action: addressing the workforce skills crisis, reversing the national insurance jobs tax, speeding up delivery of the industrial strategy, and, most important, negotiating a new growth and defence partnership with the European Union, including joining the single market and forming a new customs union. More than 1 million young people in this country are currently not in education, employment or training, the highest level in over a decade. That is a very worrying statistic. The Milburn review has warned that the UK is at risk of experiencing a “lost generation” of young people owing to rising ill health, growing skills gaps, a dysfunctional housing market, and many other structural factors.
We are seeing not a lack of ambition among young people, but an institutional failure on the part of both the current Government and the last one. Ministers should be seeking urgently to ensure that young people have access to the skills, training and work experience that are necessary to begin their careers and participate in the workforce, but they cannot gain that experience if businesses simply cannot afford to offer new opportunities because they are struggling to stay afloat.
The cost of employment has risen significantly during Labour’s time in office, and more than 110,000 jobs have been lost in the hospitality sector alone since the rise in national insurance contributions. If businesses are not able to grow, it will not be just summer jobs that suffer; employment opportunities across the board will suffer, and of course that explains why the unemployment rate has climbed from 4.3% at the time of the 2024 Budget to 4.9% now. Our SMEs face huge challenges, and many are already struggling to absorb rising costs. Unless more is done to support them, vital entry-level jobs and essential contributions to the culture and character of our local communities will risk being lost.
As for issues affecting the workforce more broadly, the Liberal Democrats have welcomed the industrial strategy, alongside a funding boost for skills and training, but that progress stops well short of the fundamental reform that 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 that they need, but they must also have scope to employ less experienced workers who are just starting to climb the career ladder. Opportunities for young people are shrinking, and any business will tell us that the apprenticeship levy is not fit for purpose. Firms cannot obtain the funding that they need to train staff, and hundreds of millions of pounds of funding go unspent. The Liberal Democrats have long called for proper reform of the apprenticeship system to give businesses real flexibility over how they spend their money to train their staff.
The motion also calls for the abolition of business rates, and the Liberal Democrats agree that we need to see a complete overhaul of this unfair and damaging system. However, it was the last Conservative Government who failed to deliver the fundamental review of the business rates system that they promised in their 2019 manifesto. Perhaps things would have been different today if they had not simply kicked the can down the road. With the hospitality sector struggling to employ new workers, damage is being done to the prospects of our young people, who are now facing a soaring youth unemployment rate of 16.2%. It is self-evident that that trend is damaging to our economy as a whole. At the heart of this debate are people who are finding it incredibly difficult to obtain a job and support themselves, their partners, their children and their families—to pay rent, to pay their bills, to pay for groceries, to pay for essentials. That is what must not get lost in the debate.
The motion purports to examine the factors limiting opportunities for young people, but, perhaps unsurprisingly, there is a glaring omission 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. An astonishing 16,000 firms have stopped all exports to the EU as a result. While the Liberal Democrats welcome the steps—even if small and hesitant—that the Government are taking to improve our relationship with the EU, I urge the Minister to recognise that this should be only the start of moves towards a much deeper trading relationship, which should include joining the single market and forming a new customs union. That would be truly transformational for our economy, and for our young people’s employment prospects.
At the very least, the Government should be making far more progress to secure a youth mobility scheme with the EU. If that were in place, there would have been exponentially more work opportunities available to young British people this summer. Will the Minister set out a timeline for the introduction of a youth experience scheme? That would be beneficial to our whole economy, and could ease some of the burdens that our hospitality sector faces.
Tim Farron
My hon. Friend is making an excellent speech. She mentioned the youth mobility scheme. At present, the UK has youth mobility visa arrangements with a number of countries around the world, but with only one country in Europe, Andorra, which is a fat lot of good. As I mentioned, those in the hospital sector desperately need to recruit more staff. A youth mobility scheme arranged with our neighbours in the European Union would enable young people in this country to gain experience overseas, but would also enable the hospitality sector in the Lakes, in London and elsewhere to recruit the staff who they need to work over the summer.
Sarah Olney
My hon. Friend is, of course, entirely right. A youth mobility scheme would benefit not just young people who live in this country, but our businesses; it would allow them to recruit from across the EU, and obtain the short-term staff that the hospitality businesses in his constituency so badly need.
Businesses across the country, especially small and medium-sized enterprises, are struggling with unprecedentedly high costs, while battling a rising tax burden and an unfavourable economic climate. Struggling businesses mean fewer jobs, lost opportunities and lower living standards, so it is clear that we must look for ways in which to support local businesses and all who rely on them.
Supporting High Streets
Debate between Tim Farron and Sarah Olney(9 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Sarah Olney
My hon. Friend is absolutely right. It is not just one thing or two things, but a whole range of different costs are being loaded on to businesses one after the other, all at the same time and during a time when the economy is very sluggish and growth is extremely difficult.
Tim Farron
My hon. Friend has listed a number of factors, but one that would not cost the Government very much money to put right is the lack of a workforce. In areas such as mine, 63% of all the hospitality and tourism businesses are operating below capacity, because they cannot find enough staff. There is surely room in town centres, helped by flexibility in planning law, to create more affordable housing in those town centres and create a workforce, as well as to create footfall to create demand for those businesses.
Sarah Olney
My hon. Friend is absolutely right. We are talking about high streets, but there is a much wider issue across the entire economy about the workforce. If we can get solutions to work for some of these things, they will have a knock-on impact, and many more sectors will see a boost to their economic prospects.
On business rates, which so many of my hon. Friends have raised, the current Government pledged in their manifesto to replace the business rates system, but still no meaningful action has been taken. As we are nearly 18 months into this Government, I wish to ask if they plan to keep their word on that commitment.
Sarah Olney
I thank the hon. Gentleman for his intervention. There are many parts of the Employment Rights Bill that we are happy to support. However, there are some bits—
Indefinite Leave to Remain
Debate between Tim Farron and Sarah Olney(10 months, 4 weeks ago)
Westminster HallRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Sarah Olney (Richmond Park) (LD)
It is a pleasure to serve under your chairmanship, Sir Jeremy. I congratulate the hon. Member for South Norfolk (Ben Goldsborough) on his excellent opening remarks and welcome the Minister to his role. I hope he is enjoying his first day in the job.
Like many Members, I have heard from constituents who have grave concerns about what the immigration White Paper will mean for them. In particular, they are worried about the intention to reform the qualifying period for indefinite leave to remain without any specific details surrounding the changes and exemptions. The lack of detail on such an important issue has led to great uncertainty and distress for many UK residents, including many of my constituents in Richmond Park, where we have been pleased to welcome over the last few years many new residents from Hong Kong, in particular.
Tim Farron (Westmorland and Lonsdale) (LD)
My hon. Friend rightly said that the lack of clarity is harmful. It is cruel to people who thought they were on one path and now are not, but it is also counterproductive, because we may end up losing really talented people working our patches. It also undermines employers, who do not quite know what game they are playing. All of this is hugely counterproductive to our economy as well as simply not being fair.
Sarah Olney
My hon. Friend is exactly right. This is not just about the residents themselves; it is also about their employers, the places that they work and the wider economy.
My residents in Richmond Park are rightly concerned about how these changes could affect their lives, the lives of their children and their employment in the UK. The BNO visa is not a transactional visa; it is a moral commitment, which the UK offered in response to the national security law and the dismantling of promised freedoms in Hong Kong, so I am deeply concerned about the Government’s decision to extend the route to indefinite leave to remain from five years to 10 years.
The lack of clarity over the BNO visa, in the midst of increasing evidence of transnational repression from China and the looming planning decision on the Chinese mega-embassy, is concerning to me and to many of my constituents who could be affected by the change. The Government must do better to provide assurance for the hundreds of thousands of BNO visa holders across the country, starting by giving them clarity about their immigration status and how the White Paper will affect them.