Seasonal Work

Graham Stuart Excerpts

Wednesday 10th December 2025 Commons Chamber

[Sarah Bool]

My hon. Friend makes a valid and correct point. We have started to see a rise in unemployment in South Northamptonshire among 16 to 25-year-olds exactly because of that.

The business owner I spoke to said that the problem is that the business starts paying at a certain level, but that increase pushes up across all wages across all levels of the business. Suddenly businesses are finding themselves drowning in the amount of money they are having to pay. That will stifle the market. We even talked to some of my hairdressers—they have been mentioned numerous times to the Minister—who said that the impact of NICs means that, according to the British Hair Consortium, there will be no new apprentice starts in 2027. That is staggering and appalling, when the Government are talking about all the opportunities for the young.

[Graham Stuart (Beverley and Holderness) (Con)]

My hon. Friend may be aware that just across the channel in France, high regulation and high tax has led to consistent, long-term high youth unemployment. Speaking of Andy Williams, another song says that there is a “lesson to be learned” from this, and we do not have to look too far to learn it.

[Sarah Bool]

As always, my right hon. Friend makes a valid point. Andy Williams is getting a lot more airtime today than any of us imagined.

--- Later in debate ---

[Sarah Bool]

I thank my hon. Friend for making that point. The importance of the construction industry was mentioned earlier, along with the plan to give more construction apprenticeships and jobs to young people, but for those jobs to be offered, we need people to be investing in the first place. Companies are not doing that, because they cannot make those decisions. They do not know where the money is coming from. They do not know when the money will next be taken from them. We are not creating an environment in which they can grow. I do not see anyone on the Government Benches disagreeing with me on that, so I think my hon. Friend’s point is well made.

[Graham Stuart]

What seems to be missing on the Government Benches is any recognition of the growing anger among young people at the fact that they are being shut out of the jobs market. It is the most damaging time in someone’s life to be barred from work when they are young. The Minister does not seem to be an Andy Williams fan, but The Clash sang under a previous Labour Government:

“Career opportunities are the ones that never knock”.

Not under Labour.

[Sarah Bool]

Absolutely.

In Prime Minister’s questions earlier, I asked about the fair choices that this Government say they have made. I think those choices are fundamentally unfair. The Government are trying to introduce a digital ID scheme, unfunded by the Government, that could cost at least £1.8 billion, yet most of the public do not want it, given that 3 million people signed the petition against it. The Government then talk about inflicting tax hits on all our businesses. It is just madness. There is absolutely no sense of direction from this Government. This is not a pro-growth Chancellor but a no-growth Chancellor. That will be the legacy.

I never thought that a Christmas song could sum up a Government’s economic approach, but if we look at “We wish you a Merry Christmas”, it appears that we are in the “we won’t go until we’ve got some,” phase from this Government, whether they are demanding figgy pudding or, in this instance, tax. I am really hoping, though, that they will see the light and eventually help businesses to unlock, to reach their potential and to have a merry Christmas and a happy new year.

--- Later in debate ---

[Sir Ashley Fox]

My hon. Friend is correct. In fact, what will probably happen is that many businesses will offer less work. That tells us that these regulations have been drawn up by people who have never run a business. When a farm, holiday park or festival operator knows that it might be legally required to provide fixed hours even when demand disappears with a change in weather or tourist numbers, the safest option will be not to hire so many people. It should not surprise the Government when that is what businesses decide to do. Seasonal workers could see fewer opportunities, shorter seasons and more competition for every shift.

Secondly, the strict advance notice rules and penalties for changing shifts might offer security for longer-term part-time workers, but seasonal work often depends on rapid, last-minute scheduling. If a grower cannot schedule pickers until they know the fruit is ready, or an events company cannot bring in extra hands until bookings spike, they may be forced to reduce the number of workers they engage at all.

The added liability on agencies will shrink the pool of temp placements, on which many seasonal workers rely. It is natural that agencies will become far more cautious about taking on temps. No doubt some will pull out of short seasonal contracts altogether. That means fewer people will be in short-term work, fewer people will be building experience in their first jobs and fewer people will have the stepping stones to full-time employment. The Bill will act as a hammer blow to seasonal work. Employers will hesitate to hire, and workers will lose the very flexibility that makes seasonal work viable.

[Graham Stuart]

My hon. Friend is making a powerful speech, and he is entirely right about the impact on seasonal workers, but we should always look beyond the producers to the consumers. What will the impact be at music festivals and at all sorts of events—community events—all around the country? We will see higher prices and there will be less competition and choice. It is socialism in action—everybody losing, including society as a whole.

[Sir Ashley Fox]

My right hon. Friend makes a powerful point with which I agree.

The combination of extra costs and extra regulations means that it becomes incredibly burdensome for small businesses to afford to take on staff. The above inflation increases to the minimum wage add further pressure, and that all has a disproportionate effect on industries such as hospitality and tourism.

My constituent Kathy owns a shop in Burnham-on-Sea, which she has run for 20 years, but the recent changes imposed by the Chancellor are making it harder and harder for her to operate. Kathy currently employs three 16-year-olds. Increases in the minimum wage and future changes to employment law will force her to stop the practice of giving youngsters their first job. There are only so many tasks someone of that age can be given, but now the salary increases and other changes will be prohibitive. Two of the three will be leaving, and Kathy tells me they will not be replaced. Is it any wonder that youth unemployment is rising? Many businesses will think, “Why risk it?”

Every Labour Government leave office with unemployment higher than when they started. Last July, unemployment was 4.4%; it is now 5%. That 0.6 percentage point increase may not sound like much to Labour Members, but it is an extra 282,000 people out of work and claiming benefits. I fear we have not reached the peak because while unemployment is rising, business confidence is falling. The Prime Minister and the Chancellor cling to their jobs, telling their nervous Back Benchers that it is them—and only them—who the markets trust. I have to say that that boast is not all it might appear. What it really means is that the alternatives are so awful that they would tax, borrow and spend even more if Keir and Rachel disappear—

--- Later in debate ---

[Andrew Griffith (Arundel and South Downs) (Con)]

Thank you, Madam Deputy Speaker. It is always a pleasure to see you in the Chair.

We have heard from Members from across the House who understand a fundamental truth: that the hospitality sector is the cornerstone not only of our economy but of our society. It is a great strength of our parliamentary system that we all represent unique districts that are all, in one way or another, replete with high streets and hospitality businesses—pubs, restaurants and hotels—which we all wish to support. Members on both sides of the House have observed the importance of binding our communities together, giving people a warm place to stay—a refuge from loneliness—and keeping our high streets vibrant. Those are places where life happens.

As we have also heard, hospitality performs a vital and arguably unique role in providing the next generation with that vital first step on the career ladder. I imagine that many of us had our very first experience of the world of work—that priceless exposure that helps us become world-ready—in retail or hospitality. I certainly did, and we have heard many other such examples. The sector does that precisely because it is a feature, not a bug, that it provides flexible seasonal work that allows young people to earn their first wage, combined with other responsibilities or opportunities, and, in so doing, to learn the important dignity of labour.

As we have heard from my right hon. and hon. Friends, pubs, hotels and restaurants in particular are hurting as a direct result of the Chancellor’s choices, not just in last year’s Budget but once again in this year’s Budget, which was delivered from the Dispatch Box just a few weeks ago. More than a dozen venues from my South Downs constituency have contacted me in the last 24 hours alone, having heard about this debate. Ruth and Martin at the Cricketers in Duncton described to me how their rates are going up by £4,500 to £5,000 a year—that is money that they do not have. The Fox Goes Free in Charlton has been a public house, continuously serving the community, for over 400 years. Like every pub, it makes a huge contribution. Its business rates bill will increase by more than £13,000 next year. The House should bear that in mind when Labour Members talk about how they have introduced permanently lower business rates. That is a laughable idea. I have heard similar stories—and worse—from the Murrell Arms in Eastergate, the Half Moon Inn in Northchapel, the Labouring Man in Coldwaltham and the Onslow Arms in Loxwood.

[Graham Stuart]

Tom, the landlord of the Kings Head in Hedon, heard on Budget day that business rates would be cut for businesses like his. Instead, the rateable value of that pub, which provides such an important service to the people of Hedon and the surrounding villages, has gone from £9,000 to £32,000.

[Andrew Griffith]

My right hon. Friend is exactly right. I would not want to incur wrath by accusing anybody of misleading the House, but that is exactly the same story that I have heard from the Bridge Inn in Amberley, the Star and Garter in East Dean, the Bricklayers Arms in Midhurst and the Black Horse Inn in Byworth. That surely cannot be a coincidence; these cannot be isolated examples of those “permanently lower” business rates—

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)]

It is a pleasure to close this debate on behalf of the Government.

Let me start by saying that I will take absolutely no lessons on running the economy after what the Conservatives did during 14 years in government. Given that there have been so many references to songs and music today, I want to suggest a song that Conservative Members might want to reflect on. It is an Elton John classic: “Sorry Seems To Be The Hardest Word”.

I noticed yesterday that the Conservatives produced a Christmas video in which they claimed that Santa’s elves were seasonal workers—you couldn’t make it up! May I congratulate the shadow Secretary of State, the hon. Member for Arundel and South Downs (Andrew Griffith), on his somewhat alarming AI skills? I would gently point out that if the Opposition’s reference point for the modern economy is Father Christmas’s workshop, that does explain a lot; although, frankly, I am not surprised. On Monday, the shadow Secretary of State repeatedly quoted figures on the supposed cost of the Employment Rights Bill from the Growth Commission. However, that commission boasts a Ms Elizabeth Truss as an adviser, so he will forgive me if I take any of his economic advice with a large pinch of salt.

Let me be clear. We on the Government Benches do not believe in pitting employers and employees against each other. No one wants a business to succeed more than the workers who rely on it for their livelihood. This Government will not indulge in the scaremongering so beloved by the Conservatives, and I will take this opportunity to clarify some of their misleading claims. But first, I want to acknowledge how difficult the past few years have been for small businesses, particularly in the hospitality, retail and leisure sectors. These sectors were disproportionately impacted by the pandemic, by a botched Brexit, and by a cost of living crisis that has robbed the British people of their disposable income.

[Graham Stuart]

Will the Minister give way?

[Kate Dearden]

I will carry on and make some progress.

Let me respond to the points made by the Liberal Democrat spokesperson, the hon. Member for Richmond Park (Sarah Olney). As many hon. Members reflected on this point, I will clarify that we are not seeking to return to or rejoin the customs union; we are focusing on trade deals with countries such as the US and India. My hon. Friend the Member for Tipton and Wednesbury (Antonia Bance) demonstrated that so clearly in relation to our trade agreement with the US, which guaranteed thousands of jobs under Jaguar Land Rover. I will come to the point made by the hon. Member for Richmond Park about the youth guarantee later in my speech and respond to her reflections.

First and foremost, I pay tribute to all those running and working in small businesses, especially in such important sectors as hospitality and retail. I know from my own experience and my family’s experience just how hard that is. My first job was in a café in the hospitality sector; it was where I developed through my first opportunities. I became a manager there, and I absolutely loved my job. It was a really important aspect of our community, including for local people’s livelihoods.

My dad worked in the printworks growing up, and he was made redundant by his bosses under the watch of the Tory Government. I worked with my mum and dad, and took the opportunity that the hospitality sector provided to them. It gave my dad the opportunity to set up a small business and run a café successfully for 14 years, and our family are so proud of that. He gave an opportunity to more young people in the community I grew up in, and the business was a really important aspect of our lives. I now have so many excellent businesses in my Halifax constituency, which I am proud to champion at the Dispatch Box and in government. That is why this Government were elected: to provide economic growth that will raise living standards and support vital sectors across our economy.

As the Minister for Employment Rights, I should say that this Government were also elected on a promise to make work pay. The UK’s employment laws are mostly a product of the 20th century. They have not kept pace with how businesses now employ people, nor with how people experience working life today. The world of work has fundamentally changed in recent years; it is no longer the norm for employees to stay in one company or even a single sector for their whole career. New technology continues to rapidly transform how we work, where we work and when we work, and the rise of the gig economy has changed the certainty and stability that employment used to provide. The Employment Rights Bill takes steps to fulfil our commitment to bring employment rights into the 21st century.

Lots of hon. Members have spoken passionately about the Bill and its importance to them, as well as the experience that they bring to this House. My hon. Friend the Member for Falkirk (Euan Stainbank) spoke powerfully about his personal experience of working in hospitality and about how he stands up for his constituents in the sector. He demonstrated the importance of the Bill in providing job predictability and security as a baseline.

My hon. Friend the Member for Shipley (Anna Dixon) spoke about the fair pay agreement and her experience standing up for care workers in her constituency and across the country, as well as about the importance of statutory sick pay for thousands more people across this country and the importance of the fair work agency. It is essential that we get this Bill on to the statute book and ensure that people can see the benefits it will bring to them, particularly through setting up the enforcement powers of the fair work agency. My hon. Friend also mentioned overseas recruitment. What matters in UK employment law and enforcement is where the worker is based; if they are based in the UK, then in general they have access to UK employment law, and enforcement agencies can and do take action no matter where the employer is based. I would be happy to talk to her if she has any further questions about the set-up of the fair work agency.

I thank my hon. Friend the Member for Scarborough and Whitby (Alison Hume) for her support. She made a passionate and to-the-point case for the importance of the Bill, as did my hon. Friend the Member for Tipton and Wednesbury. I agree with every word that they and my hon. Friend the Member for South East Cornwall (Anna Gelderd) said about the importance of this legislation to working people and to brilliant businesses across the country.

The Employment Rights Bill will strengthen workers’ rights and lead to growth. Many British businesses already offer their employees benefits and protections that far exceed what is in the legislation. The Bill will encourage those seeking employment, including young people looking for their first job, giving them security that they will be treated fairly by their employer. As we have said, we are not springing these changes on businesses; we are working very closely with them as we implement these changes gradually over a number of years. We will be consulting and working with them closely.

Lots of Opposition Members mentioned zero-hours contracts. Many people in the UK value the option to work flexibly, but some employers have taken advantage of that flexibility. We are determined to tackle the issue of one-sided flexibility, which can leave people unclear about when they will next get paid work and how much time they need to keep available for work. Of course, some businesses—including those in the hospitality, retail, agriculture and tourism sectors—experience fluctuating demand across the year. There are ways for businesses to plan their work that gives their workers a degree of security, which is why flexibility is already built into the Bill to address issues of seasonal demand. There are several ways in which an employer could approach this issue while complying with the new right to guaranteed hours, depending on their circumstances.

The right to guaranteed hours does not force companies to make seasonal workers permanent, nor does it force them to give unnecessary hours to employees; it gives workers the right to choose certainty and stability in their contracts where they want it, and helps them to budget and plan for their lives. I recently visited a brilliant business in Manchester and heard from one of its employees about the difference that guaranteed hours made to him and his work, allowing him to plan his bills and family finances and giving him stability in his livelihood. Having guaranteed hours was absolutely vital to him; it changed his life, and this legislation will change the lives of many other people across the country who are looking for that certainty and stability.

[Graham Stuart]

Will the Minister give way?

[Kate Dearden]

I have lots to make progress on, but I will give way very briefly.

[Graham Stuart]

Would the Minister like to apologise to the more than 280,000 people who are not in work now, compared with the level of unemployment last year, and could she spell out how a business that, for example, provides catering at summer festivals and then ceases to have any festivals to service can guarantee hours to a workforce it does not need any more?

[Kate Dearden]

I have heard lots of Conservative Members reflect on unemployment. What they fail to mention is that the average unemployment rate over their 14 years in government was 5.4%, which is substantially higher than the current unemployment rate. As the right hon. Gentleman knows from Monday’s debate, we have committed to consult on seasonal work. We will work with businesses, trade unions and all other stakeholders to get the legislation right—I will continue to listen and to work with them on the details. It is so important that we pass the Employment Rights Bill, so that we can consult and stick to our road map for implementing it. Many working people and businesses across this country want that certainty; they want us to crack on.

I will try to make some progress, as we are pressed for time. Several hon. Members—including the hon. Members for North Dorset (Simon Hoare), for Hinckley and Bosworth (Dr Evans) and for Gosport (Dame Caroline Dinenage)—raised the subject of business rates reform, as did the shadow Secretary of State. This Government are determined to remove barriers to investment, helping our businesses to succeed, our high streets to thrive and our economy to grow. We are introducing permanently lower tax rates for retail, hospitality and leisure properties with rateable values below £500,000 from April next year. This will give long-term certainty and support to the high street, in marked contrast to the previous form of relief, which created a yearly cliff edge and had to end entirely in April next year. We know that this tax cut must be sustainably funded, which is why from April next year, we are applying a higher rate to the most valuable properties—those with rateable values of £500,000 and above. Let me be clear: those properties represent less than 1% of all properties, but they include the majority of large distribution warehouses, including those used by online giants.

Some Members have spoken about the raising of employer national insurance contributions in last year’s Budget. I have already mentioned the state of the finances we inherited from the Conservative party. That meant that we had to take difficult decisions to get the nation back on track, and one of the toughest decisions was to raise the rate of employer national insurance contributions, but we are protecting the smallest businesses from these changes, including many of those in the hospitality, leisure and retail sectors. These difficult but necessary steps will protect our public finances and ensure that we can to continue to fund our essential services, such as the NHS and social care, and to invest in the economy.

Moving swiftly on, many Members have mentioned the visitor levy. Our mission is to kick-start economic growth and to devolve fiscal powers, and the levy is critical to that. Introducing a visitor levy provides mayors with a new lever that they can use to raise funds for reinvestment locally. We launched a consultation at the Budget so that the public, businesses and local government can shape the design of the power to introduce the levy that will be devolved to local leaders. They will decide how to introduce the levy and how it will be used to drive growth in their region. That is a historic step for English devolution.

I will reflect on some of the comments of the hon. Members for Hinckley and Bosworth (Dr Evans), and for South Northamptonshire (Sarah Bool). I do not share their lack of enthusiasm for continued investment in this country under this Government.