Business and the Economy

John Glen Excerpts

Wednesday 21st May 2025 Commons Chamber

[Andrew Griffith]

One is tempted to say that we should try to remove this wretched Government as quickly as possible. That, of course, is part of the answer. We need a Government who listen to the points my hon. Friend makes so eloquently on behalf of her constituents and the industry; a Government who understand the reality of the energy situation and the high cost of energy for business, rather than pursuing a failed dogma and ideology that is not being pursued by the rest of the world; and a Government who listen to enterprise and businesses, many of which I have met. We could take that approach from a perspective of trying to grow the economy, in order to reduce energy costs to a competitive level, or because one believes in the climate transition but understands that special skills in dealing with the harsh offshore environment need to be nurtured, rather than squandered in a way that results in people with those skills fleeing elsewhere.

[John Glen (Salisbury) (Con)]

The shadow Minister is making a forensic case against the Government. May I ask him to focus on an issue that he will be familiar with from his prior ministerial experience? We had the banks before the Treasury Committee yesterday. The imminent outcome of the advice guidance boundary review will require the Government to work closely with the regulator to ensure absolute clarity, so that investors across the country can invest in the future of this country through equities, rather than just leaving their investments in cash. That will require action and direction from the Government. It is an issue on which there is probably consensus, but the Government need to step up to the mark.

[Andrew Griffith]

I thank my right hon. Friend and predecessor in the role of City Minister. This is an important point: where we can, we will support the Government in continuing the work, which he and I started, of trying improve the investment outcomes for our economy. We want to increase equity investment to mobilise pension funds and, most importantly, deliver good returns for our investors: the constituents who send us here, and who want the best possible outcome for their pension. It is really important that the Treasury leans into that, and that we have abundant capital markets that are well regulated but not over-regulated. We must create the right culture when it comes to the advice guidance boundary, our tolerance of risk, and our financial literacy and education in our schools. That is a really big point. I hope we continue to work collaboratively and supportively with the Government, along with the excellent Select Committee of which my right hon. Friend is a Member.

None of that helps if wealth creators and global investors have left these shores due to vindictive measures that simply will not raise anything like the money needed. It is perfectly okay to admit when one makes a mistake, and in this case Treasury Ministers have made a mistake. The amount raised will be nothing like the amount expected. The Centre for Economics and Business Research has done important research on that, and found that the cost will be significant. Far from raising money for the Treasury, the country will, I am afraid, lose money.

It is a truism—one that we Conservative Members have to continually teach Labour Members, I regret to say—that we do not make the poor richer by making the rich poorer. Like all socialists, Labour Members are attracted to superficial measures that will ultimately make all of us poorer. Those of us who are left behind will have to pay more, or endure less well-funded public services, as a result of this Government shepherding the golden geese into a pen and then exiling them.

The Deputy Prime Minister was right in her memo, which we saw today: this Government are indeed coming for your job, your business, your pension and your savings. It is all very clear in black and white. Whether Members are Team Rayner or Team Reeves, when it comes to decisions on the economy, it is all bad for business. When the Minister responds, perhaps he will share with us whether he believes that the tax measures advocated by the Deputy Prime Minister, which will have a chilling effect on business, are the right way to proceed.

Whether they are stabbed by employment red tape or shot by higher taxes, the outcome for businesses is the same. The Government duck the difficult questions while the Chancellor fiddles the fiscal rules, making it up as she goes along. Families know that the cost of living is getting higher under Labour. [Interruption.] The Parliamentary Secretary to the Treasury is so animated that I feel I should keep going, rather than disappoint him. He should listen, rather than chunter.

The Conservative party has a clear vision. It understands business from first principles—[Interruption.] Conservative Members could usefully listen and learn. This could be an exercise in understanding what a proper strategy that is on the side of business looks like. We back the millions of entrepreneurs and businesses who create wealth and jobs across this country. We are unafraid to talk about the need for business, and celebrate private capital, international investors and risk taking.

It was the Conservatives who delivered the single biggest tax cut for business in modern history through the move to full expensing, and the Conservatives who slashed business rates when we introduced retail, hospitality and leisure relief, and during that terrible covid pandemic, it was the Conservatives who provided billions in finance to keep business and the economy going. That is what leadership looks like. That is what a party that is truly on the side of business looks like. I urge Government Members to do a little less talking and a little more listening. They should think of every business owner and employee whom they told, during the election campaign, that the Government would have their back, and ask themselves whether their actions, rather than their words, have proved that to be anything like the case. With employment falling, wealth creators leaving this country at a rate never before seen, businesses closing, investment crashing and inflation rising today, the Conservatives certainly do not believe so. I commend this motion to the House.