Better Jobs and a Fair Deal at Work

Edward Leigh Excerpts

Wednesday 12th May 2021 Commons Chamber

[Rishi Sunak]

The hon. Gentleman makes an excellent point. It is one that, I hope, we have already addressed. He is right about the importance of companies having the cash flow to bounce back strongly, which is why late last year we introduced something called “pay as you grow” to help the 1.3 million small and medium-sized companies that have taken bounce back loans. It means that automatically, at their choice, they will be able to turn those loans from five-year repayment loans to 10-year repayment loans, which almost halves the monthly repayments. Furthermore, it gives them the option to go for interest-only repayment periods of six months or for payment holidays, none of which will impact their credit rating as long as they do it in advance. That should be automatically communicated to businesses by their bank. I hope that is helpful to the small and medium-sized companies in his constituency.

[Sir Edward Leigh (Gainsborough) (Con)]

All the pressure on my right hon. Friend has been from one direction, so let me try to right the balance. When this is over, in terms of a smaller state, deregulation and lower taxes, are there any Thatcherites left in the Government?

[Rishi Sunak]

Well, my right hon. Friend and I strongly agree on the role of the private sector in driving our recovery. What is important, as the hon. Member for Strangford (Jim Shannon) said, is businesses having the confidence to invest, which is why the Government have provided support for businesses not just to get through the crisis, but, through tax cuts such as the super deduction, to help them invest and drive our recovery forward. Both my right hon. Friend and I know that the prosperity that we all want can only be created by those private sector companies. I hope that gives him the reassurance that he is looking for. I should make some progress.

Talking of those businesses, I do believe that they are also now beginning to feel more confident. Although many firms have been hit hard by the pandemic, the latest data shows that the number of businesses becoming insolvent actually fell by nearly a quarter last year compared to the year before, and in aggregate firms have been able to build up an extra £100 billion of corporate deposits since the start of the pandemic. Since we announced our super deduction tax cut, businesses now have a virtually unprecedented incentive to invest and create jobs. Bank of England surveys show that businesses expect to invest around 7% more than they would have done over the next two years, and Deloitte’s recent survey of business leaders shows that their intention to invest is stronger than it has been at any point since 2015.

It is, of course, going to take this country and the whole world a long time to recover fully from the shock that saw the largest fall in output in 300 years, but although our recovery will be long and difficult, it is beyond doubt now that our plan is working. We will, however, never be complacent. Eight hundred thousand people have lost their jobs through this crisis, and no Chancellor could guarantee that there will not be more jobs lost. People losing their jobs is the thing that weighs most heavily on me. Work is the best route out of poverty. It brings people financial independence. It improves long-term outcomes for families and children. Work is not just another economic variable—it provides us all with purpose and fulfilment. That is why every job lost is a tragedy. That is why jobs are our highest economic priority. That is why we have a plan for jobs, and that plan is working.