Business and the Economy
Yuan Yang Excerpts(1 day, 22 hours ago)
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Mr Gagan Mohindra (South West Hertfordshire) (Con)
It is a pleasure to follow the hon. Member for Harlow (Chris Vince). Harlow is quite close to my old stomping ground, so I know some of the areas to which he referred, although I am surprised that he did not mention the enterprise zone, which is a world-class area for business.
I will focus my comments on my constituency—Three Rivers district council is the main council area there—where we have seen business closures outpace new openings since July 2020. My local high streets in Rickmansworth, Chorleywood and South Oxhey are visibly suffering, with shuttered shops, rising costs and dwindling support. Historically, those high streets never had vacancies. As a former retailer, I am increasingly concerned about the volatility in our high streets. Whichever side of the House we are on, if we do not fix this problem, we will leave a poor legacy.
The small businesses that I speak to say that they feel abandoned by the Government. They are facing high energy bills and rent, and poor footfall. Part of that—things like parking charges and on-street parking—is not the Government’s responsibility but down to decisions made by Lib Dem local councils. I continue to have dialogue with those councils to ensure that high streets like Kings Langley’s can survive during these difficult economic times.
On an international basis, we need to recognise that a lot of wealth creators are leaving our country. Many years ago, I read a book called “Atlas Shrugged” by Ayn Rand, and I did not think at the time that it would have such an influence on my life. As many hon. Members will know, I was not politically active at school or university, so I never thought or dreamed of being in this place—let alone aimed to be here—at this stage of my life, but all of us come to this place with life experience and a journey, and part of that for me has been that Ayn Rand book. My overriding memory from that book was that, if the Government do not support wealth creators, those people will find a way to leave, to the detriment of the rest of society.
Mr Mohindra
According to a New World Wealth report, 9,500 millionaires left the United Kingdom in 2024: the highest outflow in recent memory. [Interruption.] Is the hon. Member for Earley and Woodley (Yuan Yang) looking to intervene?
Madam Deputy Speaker (Ms Nusrat Ghani)
Order. Just to help Members, let me say that those looking to intervene have to both stand and make a sound; otherwise, the Member who has the floor may not be aware. If requests for interventions are not taken, those looking to intervene must sit down. They may then stand up and try again.
Yuan Yang
I thank the hon. Member for giving way and apologise for not being louder. I wonder if he has a source of data on the so-called exodus that does not come from a firm that gives advice to the very wealthy to migrate abroad, and which therefore has a great economic interest in propagating such figures.
Mr Mohindra
I am conscious that the hon. Member was a journalist for the Financial Times, so she will know the data source better than I do. I am not an economist and have never claimed to be—I have never claimed to be a lawyer, either. I come from a small business background and have local government experience. When I speak to people in my own limited social circle who are employers—people who I hope will inspire the next generation—I hear that a lot are looking to leave these shores. That causes me massive concern. Although our parliamentary system means that parties come and go, we rely on such businesses to grow, succeed and expand.
I am a second-generation Indian. When my parents came across in the 1970s, they had the aspiration and hope that, by being willing to work hard and being lucky enough to be in the right place and the right industry at the right time, the state would not intervene. I do not see that type of ambition now. I do not wish to get party political; it is an issue that we all need to be concerned about. Governments of all stripes will spend taxpayers’ money, but it is well worth remembering that Governments have no money.
That money comes out of the pockets of people who pay taxes, and we need to acknowledge that wealth creators pay a lot more tax than other parts of society. We live in a global world, and if those people choose to leave, it will mean that the Treasury—I look at the Parliamentary Secretary to the Treasury in his place—will not have the benefit of income in its coffers to spend on things that are vital to us and to our communities.
Business confidence was mentioned earlier. We need to recognise that there is significant volatility, both around aspiration and potential capital expenditure for small and large businesses. Businesses need certainty about the direction of travel.
Yuan Yang (Earley and Woodley) (Lab)
The hon. Member for South West Hertfordshire (Mr Mohindra) mentioned my work before I came to this place. In my work at the Financial Times, I spoke to business leaders every day. Since my election to this place, I have had the honour of speaking to many businesses in my constituency. In the last month, that has ranged from the small shopkeepers in Whitley in south Reading to the leaders of Sanofi, a pharmaceutical company that is one of the biggest listed companies in the world, also headquartered in my constituency. The topics they want to talk about again and again are threefold: trade and prices; industrial strategy; and infrastructure. Those are the areas that come up time and again when I speak to my local businesses and the Thames Valley chamber of commerce, because businesses—unlike the Conservative party—have to be forward looking. They have to have a vision of the future and where they will fit into it. I will concentrate on those three areas.
First, on trade, many of my constituents have thoroughly welcomed the trade deals that the Government have done over the last two weeks—not just with the EU, but with the US and India. Small businesses in Reading and across the UK have suffered from the previous Government’s bungled Brexit of 2019. They have suffered from increased trade frictions, red tape and bureaucracy. For smaller companies, those are an increasingly large part of their overheads, and they are more difficult for small retailers doing import-export business to handle. I heard that again and again on the doorstep during the general election campaign from the many entrepreneurs in my constituency. I know already from speaking to residents last weekend how deeply the trade deal with the EU is welcomed. It will decrease the inflation of food prices in the UK and give opportunities to those exporting to the EU. That is also true for the deals with the US and India, which will create and save many jobs across the country.
Secondly, on industrial strategy, the Thames Valley is one of the biggest destinations in Europe for life sciences foreign direct investment. I am proud to say that the life sciences companies that I have spoken to are tremendously excited about the opportunities brought by the life sciences White Paper and the industrial strategy, which will be unveiled next month. In an age when countries across the world, from the US to India to Japan, are unveiling their industrial strategies, we cannot afford not to compete on the same stage. We have to decide as a country where we fit into the global supply chain, what our comparative advantages are, and what we will invest in. I am glad that our Government are doing that, and that is what the multinationals headquartered in my constituency want to hear.
Finally, on infrastructure, I am proud that my constituency in the Thames Valley is the fastest growing region in the UK outside of London. That is the case not because there is something in the water—though these days, with Thames Water, you can never tell—but because of the infrastructure. We are close to Heathrow and, via the M4, to many major cities and London. We have the Elizabeth line, and rail links that connect us with so many ports and cities across the UK. That infrastructure is paid for and funded by the Government. There is not just physical infrastructure; there are services, schools and hospitals that mean that families want to move to our area, build their lives there and bring their professional skills there. That is why I continue to press for the investment in the NHS that we sorely need, and for investment in our local hospital, the Royal Berkshire.
Blake Stephenson (Mid Bedfordshire) (Con)
I know the hon. Member was about to conclude, but it is notable that she decided not to talk about hospitality, leisure and retail businesses, private schools or all sorts of other industries in her constituency. Businesses talking to me are deeply worried about the policies of this Government. Will she reflect on the impact on smaller businesses in retail and hospitality?
Yuan Yang
The first businesses I mentioned in my speech were the small shopkeepers in Whitley—the retail businesses that want to keep their food prices low, that are dependent on imports, predominately from the EU, and that want to ensure that their customers get a good deal, and I very much support them.
Those are the three areas that businesses speak to me about regularly, and I hope that our Government’s agenda will continue to reflect those interests. I cannot help but touch on one final issue that the shadow Minister, the hon. Member for Arundel and South Downs (Andrew Griffith), brought up: employment. It is when we talk about employment rights that the Conservatives sadly show whose side they are really on. They talk about the benefits to young people; it is young people in my constituency at the University of Reading who stand to benefit from the increase in the minimum wage, and who are the most glad about that policy, and about the employment rights that they will benefit from, through the Employment Rights Bill.
Yuan Yang
No, thanks; I am about to draw to a close. Young people are the future, and they need a rise in their wages because of the living standards crisis that we face across this country. The University of Reading employs those young people and is a source of education for them. As an employer, it sees that it is better if all employers lift their standards, so that it is not undercut by other employers seeking a race to the bottom.
Madam Deputy Speaker (Ms Nusrat Ghani)
Order. It is known that the hon. Lady is not giving way, and is about to conclude.
Terms and Conditions of Employment
Yuan Yang Excerpts(1 month, 3 weeks ago)
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Yuan Yang (Earley and Woodley) (Lab)
We have heard how the rise in the national minimum wage will deliver a direct pay increase for over 3 million workers. For the first time in history, the minimum wage in this country is being linked to the true cost of living, beginning the journey of making it a genuine living wage. We can take from history a wealth of economic evidence on the positive impacts of minimum wages, which shows they lead to overall rises in pay with no significant impact on employment.
Although I take on board the questions of the hon. Member for West Worcestershire (Dame Harriett Baldwin), and I appreciate her contributions as a fellow Treasury Committee member, studies have shown time and again that while similar concerns echoed throughout the ’80s and ’90s, the overall outcome of increasing the minimum wage is simply that: an increase in pay with no significant impact on employment.
Mark Ferguson (Gateshead Central and Whickham) (Lab)
Does my hon. Friend agree that many of the concerns shared by the Conservatives are the same as those raised at the time of the introduction of the minimum wage?
Yuan Yang
Yes, that is the case. We have heard such concerns raised throughout history, yet when we look at econometric evidence that looks in hindsight at the actual impact on the economy, we see that there is no discernible impact.
I will whizz through a few different studies. In the United States there is David Card and Alan Krueger’s study, based on the 1992 increase in New Jersey’s minimum wage, the 1988 rise in California’s minimum wage and the federal minimum wage increase the following year. In the European Union there is Tomas Kucera’s 2017 study from 18 countries. In the UK there is Christian van Stolk’s 2017 study. We can go on and on about the evidence, but we can see from the trends that, although these concerns have been raised over time, the outcome is increases in the minimum wage, which is what we are seeking to ensure.
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
Does my hon. Friend agree that these uplifts are a huge boost for equality, because they benefit women, younger and older workers, workers with disabilities and those from minority ethnic backgrounds more than others?
Yuan Yang
I absolutely agree. As the Women’s Budget Group has shown, the measures on the minimum wage in the Employment Rights Bill will disproportionately benefit female workers, who are likely to be paid less than men.
These studies on the minimum wage use econometric methods to confirm what many of us can see in our communities at first hand: that too many people have too long been due a pay rise, and when we make the lowest paid better off, that spending goes back into our high streets and local economies. I would like to see even more studies done, producing better data. That must start with improvements to the labour force survey, which the hon. Member for West Worcestershire and I have discussed on the Treasury Committee, as many organisations have flagged that data as an area of concern.
Today I want to focus on one particular group of low-paid workers who are very significant for me and my constituency of Earley and Woodley: young people. There are around 13,000 undergraduates at the University of Reading, which sits in my constituency, who will be better off because of this new law that raises the minimum wage for 18 to 20-year-olds to £10 an hour. It will mean a record wage boost for that age group, who will see their gross annual earnings rise by £2,500, and for apprentices, too, who are the skilled workers of tomorrow.
I support the Government’s youth guarantee, to ensure that all young people are in education, employment or training. The King’s Trust has found that one in 10 young people outside of education, employment or training have turned down a job because they could not afford the costs associated with it—for example, travel, clothing or childcare. For many young people, a barrier to employment is that it does not pay well enough for them.
Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)
My hon. Friend is making an excellent speech. I was concerned by what I think I heard the hon. Member for West Worcestershire (Dame Harriett Baldwin) say about the rate at which the living wage is paid to young people, almost advocating for a reduction in that rate because of the impact it would have on business. Does my hon. Friend agree that is a rather regressive view, given that what young people need is the ability to pay their bills, live a life they enjoy and build a home for themselves in the future?
Yuan Yang
I very much agree with that sentiment. Young people are the future, and to ensure they get off to the best possible start in life, they need work that pays and enables them to live in stability, not concerned about paying the bills from day to day or month to month.
Most young people nowadays have to do a mixture of work and education or training to make ends meet. More than half of full-time students were working long hours in paid jobs in 2024, which is a significant rise from 2021, during the pandemic, when two thirds had no term-time employment. That has been driven by the escalating cost of living for young people, and especially rises in rent.
I want to quote a constituent of mine called Poppy, who is 20 years old and studies at the University of Reading. She says:
“Working part-time was never optional but rather a necessity... With my wages being so low…I found myself working 20-25 hours a week—leading me to miss some lectures and seminars throughout the month”.
I want to ensure that young people such as Poppy are able to study without worrying about how they are going to pay their bills. We also know that young people are less unionised, which means they have less bargaining power and less ability to fight against unfair terms or ask for pay rises, so it is even more important that we support them by raising the minimum wage.
In conclusion, it is essential that we make work pay, for the sake of our high streets, our living standards and our future—our young people. Poppy said:
“I personally cannot wait for the new minimum wage increase in April as it means I should be able to reduce my hours at work, giving me more time to focus on my studies”.
For people like Poppy, in my constituency and across the UK, the new deal for working people is transformational, and I am very glad to support today’s motion.
Madam Deputy Speaker (Judith Cummins)
I call the Liberal Democrat spokesperson.
Oral Answers to Questions
Yuan Yang Excerpts(8 months, 2 weeks ago)
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Mr Alexander
I am grateful to the hon. Gentleman for his kind words of welcome both to this House and to the Dispatch Box. I hope that we will be able to exchange in exactly this kind of constructive dialogue in the months and years ahead. Clearly, we inherited a number of open negotiating mandates from the previous Government—not least in relation to the Gulf Co-operation Council and to India—and we are carefully reviewing those mandates, but we have already been clear that, as well as resetting the relationship with the European Union, we are keen to pursue essentially a twin-track strategy, whereby we take forward the work in relation to those free trade agreements.
Yuan Yang (Earley and Woodley) (Lab)
The Minister for Industry (Sarah Jones)
I thank my hon. Friend for her question, and welcome her and her expertise to this House. As she knows, investment by private corporations was the lowest in the G7 for almost all of the last Parliament, and the new Government are determined to reverse that decline. That begins with economic stability, something every business we talk to is crying out for. It involves the development of our industrial strategy, the levers to encourage investment, the national wealth fund, the British jobs bonus and the Industrial Strategy Council, which will provide the infrastructure that investors can understand and deal with. Next month, we will host the international investment summit with 300 industry leaders, demonstrating our mission of long-term growth, and because there is not a moment to lose, I am going to Italy tomorrow to meet key Italian investors to the UK and show that Britain is back.
Yuan Yang
I thank the Minister for her remarks, and wish her the best of success on her trip tomorrow. One of Europe’s best-performing sites for foreign direct investment in the life sciences is the Thames valley, including my constituency of Earley and Woodley, and our local hospital trust—the Royal Berkshire NHS foundation trust—recently became the first in the country to be awarded for world-class excellence in its clinical research. Will the Minister meet with me, local life science businesses and hospital staff to discuss how to accelerate investment in our life sciences industrial cluster?
Sarah Jones
I thank my hon. Friend for championing such a vital sector—our most recent data shows that UK life sciences employs over 300,000 people, generating a turnover of over £100 billion. With the NHS back on its feet under this new Government, working hand in hand with life sciences, research institutions and others, we can drive the development of new treatments and help grow our industries. Of course, I would love to meet with my hon. Friend.