Backing Business to Create Economic Growth

Alison Griffiths Excerpts

Monday 18th May 2026 Commons Chamber

[Sir Mel Stride]

My hon. Friend is entirely right. It is like trying to apply the accelerator while having the brake on fully. That is what this Government are doing. That is the total illogicality of their approach.

Inflation is up on where it was under the Conservatives. It is about the highest in the G7; it certainly was last year. As we lean into the challenges of oil and gas price spikes, that is a weak position to be in. Most economists will make that point. The Labour Government will have borrowed a full quarter of a trillion pounds more across this Parliament than would have been borrowed under the plans that they inherited. It is no wonder that our borrowing costs are the highest in the G7—higher than those of Greece, and higher, even, than those of Morocco. Why? We know why: it is just what socialists do. Socialists believe that you can tax your way to prosperity, but I tell the Secretary of State: you cannot.

The £25 billion of additional tax on businesses—national insurance increases—has crucified business in this country. The burden has fallen predominantly on young people, because there was not just an increase in the rate, but a reduction to the threshold at which the tax cuts in, meaning that young people have borne the brunt of that tax increase. The sectors that rely predominantly on first-time jobbers and on young, part-time and female workers have been crucified, including the retail, hospitality and leisure sectors, in which more than 100,000 jobs have been destroyed by this Government.

[Alison Griffiths (Bognor Regis and Littlehampton) (Con)]

On Friday, I opened the new Premier Inn in my constituency—a project that was passed under the last Conservative Government—but many businesses in my constituency are failing because of increased costs and regulation. Does my right hon. Friend agree that this is an absolute travesty for our country?

[Sir Mel Stride]

My hon. Friend is absolutely right. I have had the great pleasure of visiting her constituency to speak to businesses, and that is exactly what they complain of. The Government made no effort, in the King’s Speech, to get on top of the benefits bill. There was a reference to the Timms review of the personal independence payment, but we know that in the review’s terms of reference, there is an explicit statement that it is not about controlling the welfare bill. There will be no savings as a consequence of the Timms review. That is not good enough. We have got to be about getting people off benefits and back into work.