Corporate Businesses and Franchisees: Regulatory Environment

Debate between John Hayes and Iain Duncan Smith

Wednesday 2nd July 2025 Commons Chamber

[Sir John Hayes (South Holland and The Deepings) (Con)]

Speaking long before I was born, G. K. Chesterton said that

“big business…is now organized like an army. It is, as some would say…militarism…without the military virtues.”

Heaven knows what he would say if he was alive now, as global corporations have such influence on all our lives.

Yet it is the small and medium-sized businesses in my Lincolnshire constituency and in constituencies across this country that are the backbone of our economy. They also provide the particularities—the colour and shape —of the places that each of us calls home. Those small and medium-sized businesses reinvest in the communities of which they are a part and provide opportunities for local people. We all know them from our daily experience as customers, but we also know them from the representations they make to us as Members of Parliament. Today, I speak in the interests of those small businesses, those entrepreneurs, those people who devote so much of their time, skill and energy for the common good—for the national interest and the common good drive all that I do in this place.

Small and medium-sized businesses employing up to 250 people make up about 99% of businesses, but just think of the influence and effect of the other 1%. When SMEs are accused of wrongdoing or even of breaking the law, they often have little in the way of resources to defend themselves, so they are at the mercy of powerful regulators and the caprice of giant competitors. In contrast, the big multinational companies, which have come to dominate too much of our economy, have armies of compliance officers, lawyers and spin doctors to bat away legitimate concerns.

The fear that many of us in this Chamber have about two-tier justice runs parallel to our certainty that there is a two-tier economy. Faceless, heartless multinational firms often have little in the way of roots here, and many tech firms use such rootlessness to justify decisions to pay little, if any, tax. Corporate behemoths have grown ever larger, ever more dominant in their sectors, ever more detached from their customers, and ever more determined to bend rules and evade justice. In recent years, we have seen profiteering by, for example, the major supermarkets, which very often give their suppliers—primary producers such as the farmers and growers in my constituency—a raw deal. We have seen them distort the food chain, yet take advantage of the disruption brought by the pandemic and the war in Ukraine.

Indeed, the pandemic exacerbated the power of greedy globalists. Following research on 17,000 big firms, the trade union Unite has highlighted that average profit margins have soared by 30% compared with the pre-pandemic period. In 2022, the profits of the 350 largest companies in Britain increased by about 89% compared with pre-pandemic levels. Contrast that if you will, Madam Deputy Speaker, with the plight of smaller businesses, which face ever greater costs and ever more unfair competition from their giant competitors.

What of the claims of the enthusiastic globalists that the world would be a better place as a result of their activities? Do you remember the globalists—those people who were addicted to modernity and change? Who has really benefited? In an economy in which standards of living are falling, productivity has stalled and the state grows ever bigger in the face of rising worklessness, it seems to me that the only beneficiaries of globalisation are a few people at the top of those corporate businesses. We need not monopolies, but a multiplicity of businesses, such as start-up firms, local firms, and firms that innovate and engage in new activities in the economy, rather than cement existing practices. Let us give those businesses what they need, which is greater freedom, while the big corporate monoliths need to be regulated so that they do not exploit the marketplace they dominate.

Think for a moment of the banks. I have a vision of banking—I hope you might too, Madam Deputy Speaker—rooted in a sort of “Dad’s Army” approach: a Captain Mainwaring figure committed to his community, in close touch with his customers and caring about the businesses they run. That was not just a fiction in my younger years. I well remember going to a bank as a young man and asking if I could borrow £500 to buy an old car—I was a student at the time. The manager, a bit like Captain Mainwaring in character, invited me in, gave me a glass of sherry, interrogated me for half an hour and eventually said, “Yes, I think we can probably lend you the £500.” Imagine that scene now. At best, you would have an online connection with someone remotely situated—

[Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)]

You wouldn’t get a car for 500 quid though, John!

[Sir John Hayes]

I think my right hon. Friend is referring to the £500 he still owes me from the days when I used to work for him.

The point is that nowadays the connection between customers and suppliers has become at best detached and at worst remote. As I say, now you would have a conversation with some remotely situated person who knows nothing about you or your circumstances, and probably cares less.

[Sir Iain Duncan Smith]

Will my right hon. Friend give way?

[Sir John Hayes]

I will happily give way. Is it about the £500?

[Sir Iain Duncan Smith]

Yes—without interest. I agree with my right hon. Friend. I also agree about something else, which is that people do not realise that the really big global multinationals, for example Amazon, do not really make their profits on what they sell. They hold your data and that is what they really sell, subsequently. That is where they make their money and their profit. You derive no income from that data, but they make a lot of money off the back of it. To try to break that process down and make things more local, we have to start with what we have all been complicit in, which is the idea of getting something for nothing. It is not for nothing—there is a cost.

--- Later in debate ---

[Sir John Hayes]

I give way to my right hon. Friend the Member for Chingford and Woodford Green.

[Sir Iain Duncan Smith]

I need not detain my right hon. Friend for long, but I very much supported the unions’ position on this, as I thought this was wrong at the time. Without straying into the issues of the bids, we should consider organisations such as CK from China. It now has links with and control over UK Power Networks, Northumbrian Water, Wales and West Utilities, and Eversholt Rail. The network it has now is intriguing, which is hugely around the power and communications networks. All of those are now falling into the hands of conglomerates that have nothing to do with the UK, but that are linked to Governments of a different country. This is the big problem we face: it is not that we do not like big businesses; it is just that so often now they operate from outside our legal empowerment.

[Sir John Hayes]

I am grateful to my right hon. Friend, who takes a great interest in these matters, and that is precisely why I posed the earlier question to the Minister about how closely he and others had looked at that merger. I will say no more about it than that, but it does seem to me to be a legitimate question to ask: were those things considered in this particular case, and how are they generally considered? If my right hon. Friend is right that there are threats that result from this, under existing legislation and regulation it is perfectly possible for the Government to become involved in these kinds of commercial affairs.

UK-EU Summit

Debate between John Hayes and Iain Duncan Smith

Tuesday 13th May 2025 Commons Chamber

[Sir Iain Duncan Smith]

rose—

[Sir John Hayes]

rose—

Higher Education (Freedom of Speech) Bill

Debate between John Hayes and Iain Duncan Smith

Report stage
Monday 13th June 2022 Commons Chamber

[Sir John Hayes]

Almost every part of the canon of our great literature now seems to come with a health warning. From “Moby-Dick” to “Jane Eyre”, we are told that books are desperately dangerous for young people to read. That this is happening in schools and, amazingly, in universities is almost beyond belief. Snow has turned to ice: they are no longer snowflakes, they are in deep freeze, those people who dare not even read Austen, the Brontës or George Eliot—of those three, I strongly recommend George Eliot, by the way, but let us move on before I get into any more literary considerations.

[Sir Iain Duncan Smith]

No, no—Austen!

[Sir John Hayes]

I thought my right hon. Friend was going to challenge my literary knowledge, but let us move to the amendments.

The Government have moved a considerable way since we debated the matter in Committee, and I congratulate and thank my right hon. Friend the Minister for Universities for her earlier words and especially for what she has done. She listened carefully in Committee. Often, when Ministers in Committee say, “I’ll take that away and think about it.”, we know they are going through the motions, but not this Minister, any more than I did when I was a Minister.

I think it is important that Bills metamorphosise through scrutiny and that Governments listen to argument—including arguments from those on the Opposition Benches, by the way. When I was a Minister, I would often go back to my civil servants and say, “Well, what the shadow Minister said seemed to make a lot of sense to me. Why aren’t we doing that?”. That is a very effective way for Ministers to challenge their own officials when they hear cogent and sensible arguments put from all parts of the House. That is precisely what this Minister did, and the Government amendments, on which I will not comment in any detail, reflect her consideration of the strong arguments that we used to strengthen this Bill, which she has now done in a number of respects.

Nationality and Borders Bill

Debate between John Hayes and Iain Duncan Smith

2nd reading
Monday 19th July 2021 Commons Chamber

[Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)]

I draw the House’s attention to my declaration in the Register of Members’ Financial Interests.

My focus today in the short time available—I cannot wait for call lists to end—is a very specific element in the Bill: part 4. I co-sponsored the Modern Slavery (Victim Support) Bill with Lord McColl and I am grateful to my right hon. Friend the Home Secretary for meeting me and Lord McColl on a number of occasions to look for a way to improve it before it was published. I spoke on 19 October last year about the need for an immigration provision that provides confirmed victims—I stress “confirmed”—with certainty of recovery and the ability to focus on working with the criminal justice system to ensure that we increase the very low number of prosecutions for offences related to modern slavery. I want the House to hold that thought because it is critical. Our self-interest means being better on that element of the Bill.

Part 4 sets out several reforms on modern slavery. I am aware that the Home Secretary is seeking to meet varying objectives through the Bill and that she wants to reduce abuse of the system. I want to deal with clause 52, which will provide identified potential victims in England and Wales with assistance and support for a period when the person is in the national referral mechanism. Although I welcome the support for adult victims in England and Wales during that period being put on a statutory basis, as is already the case in Northern Ireland and Scotland, the support that clause 52 places on a statutory basis is actually less than is currently provided as a matter of practice in England and Wales, which is a problem. Essentially, whereas the current guidance in England and Wales affords 45 days’ support, as does the statute in Scotland and Northern Ireland, clause 52 proposes a reduction in England and Wales to just 30 days’ support for confirmed victims of modern-day slavery. I draw that to the attention of my hon. Friend the Minister, because it needs to be dealt with.

[Sir John Hayes]

My right hon. Friend has many faults, and I am aware of a handful of them, but one of them is not naivety. He has far more qualities, and his quality will tell him that the system is being gamed by all kinds of unscrupulous people. The risk is that modern-day slavery is one way of gaming the system.

[Sir Iain Duncan Smith]

I simply ask my right hon. Friend to notice what I said: I referred to those who already have confirmed status as a victim of modern-day slavery. This is important, because it means they have already gone through the NRM. It is a question of how we deal with them at that point. This will give time to arrive at the right conclusions.

Statutory support is provided during the national referral mechanism, so having no such support afterwards makes no sense. They go out of the NRM and are suddenly in the cold world, unable to navigate their way and fearful of retribution by those who treated them so badly in the first place. The provision of support to help these people is also in our self-interest, because it is in our national interest to ensure victims get sufficient support to allow them to help police and prosecutors with criminal investigations. In a way, by reducing such support, we are making things worse.

Clause 53, on leave to remain for victims of slavery or human trafficking, is at the heart of the Bill. I co-sponsored a Bill with Lord McColl to provide leave to remain for 12 months, along with assistance and support, for adult victims who want to remain in the UK. I gave evidence on this to the Home Office, and I am therefore disappointed that, instead of addressing the problems with discretionary leave that I highlighted last October, the Government have simply placed current practice, which is clearly not working, into a statutory framework.

Under clause 53, leave to remain will remain discretionary and the same justifications for its provision will apply: being necessary to assist the police with investigations, being necessary because of personal circumstance or being necessary to make a compensation claim.

The ability of a victim to remain in the UK is unchanged by the Bill, and one would therefore expect that the proportion of confirmed victims in receipt of leave to remain would remain low. In other words, this Bill would perpetuate rather than address the current arrangements in which the vast majority of confirmed victims are denied leave to remain in the UK to help their recovery. The police have made it very clear that they want victims to be settled in accommodation so that they know where they are and they can give evidence.

I support much of what the Bill is trying to do, and I understand the motives behind it, but part 4 deals with those from the most terrible backgrounds and facing the worst persecution, trafficked as they are. We need to give them time, and that time will help us prosecute the very people we wish to go after. Being good and decent is a payback to us at the same time.

I support this Bill, but I look for changes to part 4 during its passage.

Police, Crime, Sentencing and Courts Bill

Debate between John Hayes and Iain Duncan Smith

3rd reading
Monday 5th July 2021 Commons Chamber

[Sir Iain Duncan Smith]

That may be the case, but the reality is that, by law, dogs must be microchipped. It makes no sense to microchip a dog, only for some vets not to scan them. That would mean that people who had stolen dogs could simply take them to the vet of their choice, knowing that they would not be scanned. The point is that if we have an offence, we must follow it through. Those pets must be scanned; otherwise, they will get stolen and sold without redress.

Those were the three areas that were raised with me, and many of my colleagues and friends who have signed these new clauses have also faced the same concerns. There has been a staggering welling up of anger, concern and worry about what might happen to people’s pets. There are some who will not go on walks with their dogs at the moment for fear of what might happen. It is important for the Government to recognise that this is a major concern.

[Sir John Hayes (South Holland and The Deepings) (Con)]

My right hon. Friend is championing a noble cause that many of us feel very strongly about. Has he received the assurances that I have no doubt he has requested from the Government that they share our serious concern and that they intend to act, if not tonight then certainly in due course, on precisely the issues he has raised?

[Sir Iain Duncan Smith]

I thank my right hon. Friend for his intervention. The truth is that I have had a lot of discussions with my right hon. and learned Friend the Lord Chancellor about this, and I feel that he is very sympathetic. I am sure that he can speak for himself, but I hope that he will give an undertaking that the Government will return to this matter in this Bill, at least by the time it is in the other place, and make whatever changes are necessary to the laws and regulations in terms of criminal justice. I have a high hope that that will be the case, but I will leave it to my right hon. and learned Friend to make his position clear when he gets to his feet.

Careers Advice (Schools)

Debate between John Hayes and Iain Duncan Smith

Thursday 13th January 2011 Commons Chamber

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

It is a pleasure to follow the hon. Member for Ellesmere Port and Neston (Andrew Miller), who chairs the Select Committee on Science and Technology and has a background as a technician and expertise in industrial relations. He said that I was “eclectic”. I like to be eclectic, and even idiosyncratic, but only to the point where it is still interesting and not weird, as I shall try to illustrate in these remarks. I will address the points that he made, but he will understand that as a matter of courtesy I wish to start by congratulating my hon. Friend the Member for Wirral West (Esther McVey) on securing this debate and on the contribution that she has already made on the subject of careers, aspiration and, in particular, the opportunities available to young women.

I was proud to attend, along with the Secretary of State for Work and Pensions, my right hon. Friend the Member for Chingford and Woodford Green (Mr Duncan Smith), whom I see in his place, the launch of this magazine “If Chloe Can”. It is tailored to promoting opportunities for young women, to opening up those opportunities and to spreading the message that people’s aspirations, tastes and talents can be met if the right support, the right advice and the right opportunity is in place. I will present a copy to you at the conclusion of this debate, Mr Deputy Speaker, and I hope that it will be signed by my hon. Friend the Member for Wirral West. She and other Members are a role model for young women, showing what one can achieve with hard work and determination. I know that she has been a success in business and in the media, and, as I say, she is making her mark in politics too.

My hon. Friend is right to say that high quality careers guidance is crucial if all young people are to receive the support they need to make well informed decisions about learning and careers. I listened to her carefully and she was also right to say that most young people garner that advice from social networks, parents and others in their immediate locale. I shall come on to speak at great but not inordinate length about social mobility.

[The Secretary of State for Work and Pension (Mr Iain Duncan Smith) (Chingford and Woodford Green) (Con)]

You’ve got plenty of time.

[Mr Hayes]

My right hon. Friend is pitching in from a sedentary position, Mr Deputy Speaker, and before you say so, I will say that he should know better.

The point about the garnering of advice from those networks is that it disproportionately favours those whose parents or friends know about opportunity, know about going to university, know about college or know about apprenticeships. Young people who do not have access to that familiar and social support to enlighten them about those opportunities are doubly disadvantaged. In order to compensate for that disadvantage—it is the mission of this Government to redistribute advantage in society, and I make no apology for saying so—we need to ensure that good quality advice and guidance is in place so that people can achieve their potential.

The right support is one of the keys to unlocking social mobility and opening the door to aspiration and progression. Ruskin once said:

“The highest reward for man’s toil is not what he gets for it, but what he becomes by it.”

The hon. Member for Liverpool, Walton (Steve Rotheram), whom I seem to recall is a successful apprentice, rightly says that this is not merely about wage returns. Of course it is about that, but it is also about elevating the status of the practical, understanding the aesthetics of craft and realising that vocational learning has its place. As my hon. Friend the Member for Beckenham (Bob Stewart) said, for too long in this country we have conned ourselves into believing that the only form of prowess that mattered came from academic accomplishment. Practical skills and vocational competencies also give people a sense of pride and purpose, which is vital to their self-esteem and the communal health of our country. I entirely endorse what the hon. Member for Liverpool, Walton, in a happy alliance—one might call it a coalition—with my hon. Friend the Member for Beckenham, said earlier. I recommend to them both a speech on that subject that I made at the Royal Society for the encouragement of Arts, Manufactures and Commerce. I have only one copy with me, but perhaps they could share it, passing it from one to the other.

Good guidance from a young age can stimulate ambition, inspire hard work and instil social confidence, even for the most disadvantaged young people in our society. As the hon. Member for Ellesmere Port and Neston said, we have some good examples of support offered to young people in schools and by the Connexions service. As he acknowledged in generously welcoming our initiative for an all-age service, we also have many instances where young people are not getting the advice they need. As my hon. Friend the Member for Wirral West made clear, the evidence clearly supports that conclusion.

According to a survey carried out by the Edge Foundation in 2010, 51% of young people reported that careers education, information, advice and guidance were simply not meeting their needs. Incidentally—this is not in the notes prepared for me, but I shall add it—the survey also revealed that teachers in schools knew less about apprenticeships than any other qualification with the exception of the Welsh baccalaureate. I have nothing against the Welsh baccalaureate, but one would have expected teachers to know rather more about apprenticeships than they do. As they do not have that information at their disposal, they cannot always match people’s aspirations and talents to the opportunities that I spoke of earlier. That is why we need independent, high-quality, up-to-date and impartial advice and guidance for all young people.

Ofsted has found, as hon. Members will know, that the provision of information, advice and guidance about the options available is not always sufficiently impartial. Those concerns also extend to the issues about which my hon. Friend feels so passionately.

First, on broadening horizons and challenging preconceived ideas about learning and careers for women, we must build on the work of my hon. Friend and others to ensure that young women are equipped and inspired to pursue the fullest possible range of careers rather than those that are too often mapped out for them based on stereotypical beliefs.

On making apprenticeships and vocational training equal in status—and appeal—to academic qualifications, I have, as hon. Members will know, long made the case for elevating the practical in our system. Through restoring a focus on specialist expertise in guidance for young people, I want us to inspire the next generation of young scientists, for example, as the Chair of the Select Committee recommended.