Joe Robertson
Main Page: Joe Robertson (Conservative - Isle of Wight East)Department Debates - View all Joe Robertson's debates with the Department for Business and Trade
(1 day, 22 hours ago)
Commons ChamberYet more common sense is coming from those on this side of the Chamber, and I agree with my hon. Friend. Of course, it is young people in particular who do not have confidence in this Government and are fleeing.
It is clear that I do not have particularly high regard for Labour’s economic competence, but even I did not expect the Government to be running out of money quite so quickly. I expected them to be bad, but I did not expect them to be this bad. It does not give me any political joy to say that, because my constituents and their constituents are paying the price for Labour’s incompetence through higher taxes and, in many cases, with their jobs and livelihoods. I genuinely wish that they were better at government, but that is wishful thinking, because here is another hard truth about Labour: despite the party’s name and the false advocacy for working people, every Labour Government since the second world war have left office with unemployment higher than when they started, leaving the Conservatives to clear up their mess.
We Conservatives know that the best thing we can do for working people, and to lift people out of poverty, is to help them get a job, and we have a far better record than Labour in doing that. Between 2010 and 2024, Conservative-led Governments oversaw the creation of 4 million jobs—an average of 800 a day. This Government are destroying jobs by the tune of hundreds per day.
Joe Robertson (Isle of Wight East) (Con)
We know what the Government want to do to support tourism and hospitality: they want to get those on welfare to work in that sector, despite the fact that some of those people are on welfare because the Government have taxed tourism. Does my hon. Friend think that that is socialism or incompetence?
I think my hon. Friend knows my answer to that. It is ironic—it would be laughable if it was not so sad—that the Government announced over the weekend that they will introduce subsidies to create jobs, because if they did a better job at running the economy, jobs would be created anyway. I will come back to this issue in a moment.
On the record of the last Government, we took millions of people out of paying income tax. We increased the tax-free allowance from £6,475, which we inherited under Labour, to £12,570. As soon as we were in a position, following the pandemic, to start reducing taxes, that is exactly what we did. We reduced national insurance on workers from 12% to 10%, and then from 10% to 8%, with a plan to eliminate employee national insurance altogether and, of course, align the thresholds.
Labour talked about backing business when in opposition, but they are doing no such thing in government. In the Budget, the Chancellor had the brass neck to say that she was helping the hospitality industry with business rates. In reality, hotels, pubs, theme parks, restaurants, cafés are all seeing an increase in their business rates, as are the wider retail and leisure sectors. Investment in hospitality and tourism is already being paused or diverted overseas due to the UK’s rising costs and regulatory environment.
Joe Robertson (Isle of Wight East) (Con)
Tourism and hospitality offers seasonal, flexible and part-time work, and that is why many people, particularly young people, choose to work in that sector. The UK tourism and hospitality sector is one of the most taxed sectors in Europe, so what did the Government do for the sector? They reduced flexibility and increased taxes, and that is having real-world consequences. It is little wonder that 55% of the jobs lost under this Government have been lost from retail, hospitality and leisure.
Youth unemployment is up, too, which is having real-world consequences in coastal communities such as those on the Isle of Wight. Towns that are reliant on the visitor economy, like Ryde, Sandown, Shanklin and Ventnor, are seriously concerned that this is just the start, and that the Government are making plans for a tourism tax, which would hit small businesses even further. On the Isle of Wight, 38% of our local economy is based on tourism and visitors. If the Government tax something, we can expect less of it, and we expect fewer visitors, which will hit our economy. It is local businesses, not just those in my constituency, that provide the first job opportunity for so many of our young people. Young people may want part-time, flexible work, because they are in education, yet the Government say that the state knows best, and through their unemployment rights Bill, they have reduced the flexibility that benefits those looking for work.
The Government have already made some important U-turns, such as getting rid of the ridiculous idea of day one rights—by the way, the previous Labour Government never sought to introduce such rights—but they need to go further. What do I say to small business owners and to hard-working families on the Isle of Wight when they see job opportunities disappear and their taxes go up? The only answer I have for them is: more tax for more welfare. This is happening because today the Government want to grow an already substantial welfare bill. They did not want to do so last summer. Last summer, the Government tried to reduce welfare, though not by much, but they had to abandon their plans while a Minister was delivering a speech in this Chamber because their Back Benchers said no. This is not a Government being led from the front; they are being led from their Back Benches, and we have a caretaker Prime Minister in office. Having abandoned the Prime Minister’s plans to cut welfare, the Chancellor has done the opposite and increased welfare spending.
The Government have a solution for the challenge that tourism and hospitality faces in finding people to do the jobs. We heard just a few days ago that their solution is to encourage people to do those jobs while they are on welfare, because there are vacancies, though jobs were lost because of the Government’s taxation policy. In fact, there are more people on welfare because of taxes on small businesses, tourism and hospitality, and now the Government are asking those people, who once had a job in the private sector and are now reliant on the state, to help them out by doing some of that work. That is both socialism and incompetence, and ultimately the whole country loses out, because the economy is grinding to a halt, with inflation and unemployment both up.
The best way to fund public services is to grow the economy. Growing the economy would increase the tax take without any taxes going up. In fact, the Government could reduce taxes and increase the tax take if the economy grows. That is the money that pays for public services. The Minister said that the shadow Secretary of State was like Scrooge for setting out the severe challenges that this Government’s economic policy presents for hard-working families and businesses. It is not being like Scrooge to hold up a mirror to decision makers to show them the outcome of their decisions. It does not matter whether it is Christmas time or any other time; the Minister and the Government need to hear the hard truth, and it is the role of Opposition Members to say it. We are not going to be put off from doing so.