(4 days, 12 hours ago)
Commons ChamberMy hon. Friend makes an excellent point. The small businesses that I speak to say that they feel abandoned by this Government. They face high energy bills and rents, and poor footfall. They have been harmed by Labour’s decisions, and have ever-growing worries about the Budget later this month.
We already know that hospitality is struggling. One in five high street premises are empty, and 100,000 hospitality jobs have been lost since Labour’s Budget. Two thirds of those jobs lost were done by 18 to 24-year-olds. That is simply not sustainable. Business owners do not want that to happen, but they have no choice. A third of businesses are reducing their opening hours as they simply cannot afford to staff up. They include Kitchen Croxley in my constituency, which warned me that as a result of Labour’s policy changes, job losses are inevitable, if it is to keep its doors open.
Businesses of all sizes are affected. Hubs, a franchise owner in my constituency, made me aware that due to Labour’s national insurance contributions increases, his NICs amounted to £138,000 for April to September. He has been warned that his contributions could increase to over £275,000 for the business’s first full-year cycle. That franchise owner is creating 90 local jobs and filling a large high-street unit that sat unoccupied for over a year and a half. It simply seems unfair. Business owners are willing to contribute their fair share—they are investing significant amounts in our high streets—and they should not be penalised for trying to grow their business.
The spirits industry disproportionally faces the effects of these policies; it has contributed £676 million less in taxes than expected, despite the rise in alcohol duty. One business in Kings Langley, Fells, which employs over 70 people in the area and regularly supports charitable causes in the community, faces mounting costs and regulatory burdens. It urges a freeze in duty rates to mitigate the need for further price increases. We are talking about an industry that contributed over £75 billion to the UK economy in 2022, according to the Wine and Spirit Trade Association. Why are we stifling it?
This summer, I spent a week visiting pubs across South West Hertfordshire, to see how they are being affected by Labour’s decision making. I spoke with Nick, the manager of the Coach and Horses in Rickmansworth, who told me that the rises in the minimum wage and NICs have made staffing incredibly difficult. As I have said before, many businesses sympathise with the need to ensure job security and good working conditions. However, that comes at the cost of rising prices, which just pushes the issue on to customers. Rising prices lead to fewer people visiting pubs and putting their money back into the community.
Does my hon. Friend agree that the Chancellor would do well to consider a draught beer duty relief? We brought one in when we were in government. It could be balanced up by taxes elsewhere. It would ensure that our locals were supported, instead of facing ever greater costs.
My right hon. Friend hits the nail on the head. Members on all sides of the House claim to support pubs, but our policy means that our position is a lot stronger than this Labour Government’s. As I have said before, where this Labour Government get it right, they will have our support. They should not be fearful of changing direction—I will not use the word “U-turn”, because they have done a few of them already. We will absolutely support them changing direction for the better.
Post offices remain critical to our high streets. They are a credible and trustworthy high-street brand, and a place where constituents regularly see a friendly face. I represent seven post offices in South West Hertfordshire and visit them regularly, including the one in Croxley Green, which I visited just two weeks ago. I have seen in person how busy postmasters serve the community. Many postmasters see their regulars frequently; they are often the first to see how their customers are doing.
Post offices have evolved to provide services that go beyond just post. Many now also provide banking services, owing to the closure of high-street banks. Danny, the postmaster at the Rickmansworth branch, is able to offer enhanced banking services. Without them, my constituents would be stuck waiting for unreliable buses to travel to their nearest bank, just to access their money.
In 2023, when we were in government, we extended the retail, hospitality and leisure relief scheme. We will reverse this Government’s decision not to support our high streets. When it comes to helping our high streets, I look forward to support from across the House, rather than political point scoring.
(4 months, 3 weeks ago)
Commons ChamberI commend my right hon. Friend on his length of service to this House.
My hon. Friend, the Opposition Deputy Chief Whip—and indeed my Whip—is very welcome. Thanks very much; I am grateful for that.
We have this issue of how we fix a broken and clearly unfair system. Newer colleagues, and there are many of them in the House, might think, “Well, surely people would want to fix it. There is no perfect system and there will always be dispute, but if the Government did a map of need—fundamentally, an assessment of what fair would look like—and then mapped against that line where everyone was, newer Members might think, “The Government might be prepared to do something with those who are most overfunded to help compensate the underfunded.” My experience is that they do not and will not, so I will discuss practical ways of getting change. What typically happens is that despite Ministers’ talk in debates like this one, we end up with the Treasury at a spending occasion like yesterday giving 3%; if inflation is 2.5%, it gives 3% to everybody. That means that the cash gap between one authority and another grows, and in a sense the injustice grows with it.