Wednesday 10th December 2025

(1 day, 22 hours ago)

Commons Chamber
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Nigel Huddleston Portrait Nigel Huddleston
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I have spoken to a few zero-hours workers, and many of them are not happy with the Government’s policy, because it is going to make some of them unemployed.

Of course, the one thing that we do know about Labour Governments is that they know how to spend other people’s money. They have no idea how wealth is created and how the money that pays for our public services is generated in the first place, but they certainly know how to tax and spend. We have seen tax increases of £66 billion in just two Budgets, and tens of billions of pounds in additional debt. As Margaret Thatcher said,

“The problem with socialism is that you eventually run out of other people’s money.”

John Slinger Portrait John Slinger (Rugby) (Lab)
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I thank the hon. Gentleman for giving way. Hon. Members—

Lindsay Hoyle Portrait Mr Speaker
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Order. Mr Hoare, your voice is carrying and I do not need to hear it.

John Slinger Portrait John Slinger
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It did not carry all the way to me.

Lindsay Hoyle Portrait Mr Speaker
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It carried to me. That is why I am defending you.

John Slinger Portrait John Slinger
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Thank you, Mr Speaker.

Conservative Members often talk about wealth creators. Of course business people and entrepreneurs are wealth creators, but does the hon. Gentleman agree that wealth is also created by the public services and infrastructure that we need, which has to be paid for?

Nigel Huddleston Portrait Nigel Huddleston
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The hon. Gentleman’s final words are key: how are public services paid for? The top 1% of income tax payers in this country pay 29% of all income tax. It is estimated that the Labour Government’s policies have led to 16,000 of the wealthiest people in this country leaving—equivalent to a third of a million to half a million average taxpayers. The burden, therefore, is spread on the others. Instead of demonising some of the wealthiest people, who make an incredible contribution to our public services, maybe the Government should thank them.

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Nigel Huddleston Portrait Nigel Huddleston
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This is just noise. The hon. Lady needs to speak to businesses in her constituency—[Interruption.] The facts are the national insurance increases, the business rates increases and the additional burdens on businesses. If anybody on the Government Benches can name any major business organisation that welcomes the employment Bill—the unemployment Bill, as we call it—I would welcome them doing so now, but I do not think they can. They are anti-business: that is the point. The Conservatives are pro-business, they are anti-business. The principle is key: to be pro-business means to be pro-workers and pro-public sector, because that is how the taxes are generated. The Government have the exact different—

John Slinger Portrait John Slinger
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Will the hon. Gentleman give way?

Nigel Huddleston Portrait Nigel Huddleston
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I won’t. I will give way in a moment to somebody behind me, but I am aware, Madam Deputy Speaker, that I am on the final stretch.

I can only assume the Labour Government just do not understand the negative impact their tax policies are having on tourism, hospitality and leisure, because to do such harm willingly is pure economic vandalism. The Government’s lack of understanding of the private sector and how jobs are created beggars belief.

None of this would be necessary with a competent, pro-business Government. There is an alternative: a pro-business Conservative alternative that backs business, that wants the private sector to succeed, that backs entrepreneurs and wealth creators, and has policies that enable job creation and economic growth through policies such as 100% business rates relief for retail, hospitality and leisure. Instead, the Government have decided on an economic strategy that punishes enterprise, burdens the taxpayer, disincentivises work, increases dependency on welfare and grows the size of the public sector. That is the wrong strategy.

The Labour Government are destroying the economy. They promised change at the last election. Well, we certainly got it: slower growth, higher taxes, higher spending, more debt, more welfare and higher unemployment. Time and again, Labour has betrayed the trust of the British public and we on the Conservative Benches will not tire of holding this disastrous Labour Government to account for their utter incompetence. The country cannot afford three more years of this. Britain deserves better.

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Luke Evans Portrait Dr Evans
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My hon. Friend is entirely right, and I bow to her experience as I know that she has run and been involved with many businesses. She speaks the truth about what businesses and risk-takers are looking at in this country. They are saying, “Why would I take that risk? Why would I take on that responsibility if there is not any reward?” I would have had more truck with the Government if they set out what they were trying to achieve over the next three or four Budgets sequentially. They could then have increased national insurance contributions, for example, as a one-off, and built around that. However, the problem is that there is a toxic concoction of measures all coming in one go.

John Slinger Portrait John Slinger
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The hon. Gentleman is making an interesting speech. On his point about risk, Conservative Members always look at that through the lens of the employer. There are, of course, risks—I spent most of my career in the private sector, so I have some experience of this—but does he accept that employees also take risks? When they take up a job, they need to be paid sufficiently so that they can live their lives with dignity, look after their children, and so on. Does he accept that a balance must be struck between people seeking jobs and employers providing jobs?

Luke Evans Portrait Dr Evans
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The hon. Gentleman is right. As an MP, he will be an employer. No doubt, he is a good employer who offers the members of his team good terms and he cares deeply about the staff who he is looking after. However, we have taxpayer-funded jobs, but the private sector has to generate the funding to employ people, so those businesses have to take the risk and work out whether there will be a job in the first place. Worse still, because of the Government’s Budget choices, many cafés and pubs are looking to reduce the hours that they open, to reduce their staffing hours or even to close because they cannot make the numbers add up. We are seeing a cumulative effect, which is having an impact at a micro level on the likes of Twycross and at a macro level on the whole country, with every industry speaking out and saying that it is having problems.

I had hoped that the Government might listen to those ideas. The Government’s mantra has always been that their No.1 mission is growth, but all the measures that they have put in place are anti-growth. We are seeing the results of that, with inflation being higher.

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Caroline Dinenage Portrait Dame Caroline Dinenage (Gosport) (Con)
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As I mentioned to the Minister when he was in his place earlier, I started my first business at the age of 19. That is what I did for 20 years, before I became an MP—I ran businesses. That is why I am so upset at some of the ways in which this Government have behaved: I understand viscerally how taking that leap takes everything somebody has. It takes their time, money, energy and social life, and it is all a risk.

For so many months—and years, in some cases—people work almost without pay, but the reward is fantastic, because they can employ people, create jobs, offer opportunities, change lives and futures, and generate their own supply chain for other small businesses to do the same. They can play a really valuable part in their local community. That is what small businesses across our communities do every single day. They are brave, resilient and dedicated, and they need to be valued, but over recent years so many of them have been suffering. The pandemic took a huge toll on them, and that was followed by the energy crisis. Now, worst of all, we have a Government who pledged to see their contribution and to help them deliver growth, but this Government are letting them down.

I feel viscerally that enterprise and entrepreneurship should be rewarded, which is why I run local schemes in my constituency. I have a competition for the best independent shop running at the moment, in line with Small Business Saturday last weekend. It is the sixth year that I have run this competition, and we get the results on Saturday—it is very hard-fought on my Facebook site. Thousands of residents are voting, and they love doing it, because they like to show how much these independent traders and little shops mean to local jobs, to our communities and to keeping our high streets vibrant and compelling.

Last year, I held a best pub competition. After another very fierce public vote, the winner was the Windsor Castle in Hardway. When I visited the pub to give its team their certificate, I saw the time, effort and pride that they put into everything they do—the programme of events, the decorations, and the hospitality they offer—just like all the other pubs that were on the longlist. I saw how much local people value their local, but the message from these pubs is stark: they are suffering.

Despite the Chancellor’s spin, the average hospitality business will see business rates rise by almost £20,000 over the next three years. The statistics have already been mentioned very effectively today by the shadow Minister, but these numbers are real lives, real jobs and real futures, and that £20,000 represents an existential threat to the margins of these businesses; it will drive them to extinction.

Combined with rising energy costs, after the Government promised to tackle overheads, and last year’s rise in national insurance, this is a perfect storm. It is having a direct impact on jobs in my Gosport constituency, particularly jobs for young people. It is also closing off traditional routes into work. As a parent, I know that a part-time Saturday seasonal job is valuable—we probably all did one. My first job was at Olivers shoe shop on Waterlooville high street. I got £10 a day, and I spent most of it on shoes, but it taught me a lot. It taught me employability skills and how to save money—actually, it did not, as I spent most of it on shoes—and it also taught me the very valuable lesson that I did not want a career in retail or selling shoes. These are all fantastic life lessons and experiences that prepare people for their future careers.

Some of those jobs are on contracts that the Labour party has such a visceral problem with, yet they offer flexibility and convenience, particularly during exam time, when young people do not necessarily want to do all those hours. There are sectors that need that flexibility, such as hospitality, leisure and events. In the Culture, Media and Sport Committee, we heard this week from people at major events, such as the London marathon, that the number of staff they need grows enormously as they get towards the event, then obviously tails off afterwards. These are the sectors that offer the most chances for young people, and they are right in the crosshairs of the Government’s punishment.

The evidence is clear, and in Gosport it could not be more tangible. The number of young people on out-of-work benefits has gone up by 31% in the last year alone. A recent article in The Daily Telegraph painted a bleak picture of the prospects for young people in my Gosport constituency; it makes for very tough reading.

John Slinger Portrait John Slinger
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Does the hon. Lady accept that more 18 to 24-year-olds are in employment than a year ago—210,000 more, according to the November labour force survey? The story of doom and gloom that she is portraying is not entirely the case.

Caroline Dinenage Portrait Dame Caroline Dinenage
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That may be the case, but the hon. Gentleman needs to read his data a little more accurately, because the number of young people on unemployment benefit has also gone up. I will repeat the figure: it has gone up 31% over the past year in the Gosport constituency alone. It is all very well swapping numbers across the Chamber, but these are lives, futures, and opportunities to get on a career ladder. The hon. Gentleman should be ashamed of his party for what it is doing to young people in my constituency.

The law of unintended consequences is at work. If local businesses are not giving opportunities to young people, that impacts the fabric of a town, including its social fabric. I recently received an email from one of the pubs in Gosport, which said:

“I can guarantee we will not be open this time next year if things continue. The Labour government is doing nothing to help the industry, the knock-on effect to the customers, staff, us, jobless, homeless…Sadly there will be no British culture left, and that is the very sad truth of it. It’s only the Government at the moment, who are gaining and laughing all the way to the bank. The place and the building and the customers—the whole aspect of the ‘local’ pub—will be no more.”

Then there is the hair and beauty salon—another fantastic industry, worth £5 billion and as much again in social value. According to the National Hair and Beauty Federation, the Government’s tax policies are forcing businesses to make very tough decisions, such as taking on fewer staff and fewer apprentices, and incentivising staff to become self-employed, without all the protections that the Government say they want to promote. The British Hair Consortium has warned of an existential drop-off in the number of apprentices entering the sector, while a beauty parlour in Gosport recently told me that it was not optimistic at all about the health of the sector over the next year, and that it does not think the Government are supportive of such businesses.

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Antonia Bance Portrait Antonia Bance
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I am sure the hon. Member knows me well enough by now to know that I am not going to indulge in silly games. What I will say is that this Government’s priority is to get the economy growing. It is why we are investing in infrastructure. It is why we are rebuilding our public services. It is why we have put the greatest level of investment in our public infrastructure. It is why we are investing £39 billion in house building, as I said in my intervention on the hon. Member for North Dorset (Simon Hoare), who is no longer in his place. It is why we are rebuilding our public finances. At times, this does involve some difficult choices, and some that not everyone may always agree with, but we are making the fair and right choices: asking those with the broadest shoulders to bear the heavier load, rebuilding public services, helping with the cost of living—and, yes, clearing up the Tory mess.

We are cutting borrowing more than any other country in the G7, leading to a doubling of the headroom to £21.7 billion. We have the highest levels of public investment in four decades. We are backing entrepreneurs and fast-growing companies with tax breaks to list and to hire here in the UK. Our planning changes will back the builders. Devolution for local growth will mean that local growth spreads outside London and the south-east—something so very close to my heart and to the hearts of many in this place. We are proud to be putting up the national minimum wage so that people have more money in their pockets, because the core problem affecting the retail and hospitality industries is that people do not have money in their pockets to spend on our high streets. Getting wages going up—and they are going up faster than prices—is the way to have people with more money in their pockets.

John Slinger Portrait John Slinger
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My hon. Friend is making an excellent speech. Did she notice yesterday that the Leader of the Opposition said that she did not want the national minimum wage to increase at all? Does my hon. Friend think that indicates that there might be a cold freeze in the air?

Antonia Bance Portrait Antonia Bance
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My hon. Friend reads my mind, as that is the point I was just about to make. I was so sad to see the Leader of the Opposition abandon what was one of the better policies of the last Government: that there should be a fast-rising national minimum wage at all times. I agreed with the last set of Prime Ministers before this one on very little, but one thing I did agree with them on was that it was right to maintain the machinery of the Low Pay Commission—a tripartite body where unions, businesses and academics come together with Government to look at the prevailing conditions in the country. Those at the commission get out there and visit businesses of all types in all regions, including hospitality and retail, and set the national minimum wage at a level that would work for workers and for businesses. It is an approach that this Government have continued, and I am sad to see that the Leader of the Opposition intends to abandon it and to abandon low-paid workers to frozen pay.

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Antonia Bance Portrait Antonia Bance
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I absolutely agree with my hon. Friend, as I have done since the first time we worked together, more than 20 years ago.

It is interesting to hear the advocacy for welfare reform. Today we have heard a lot about the difficulties with business rates, and I will not rehearse the arguments—they have been well made by my friends on the Front Bench—about the action that this Government are taking on business rates to help the hospitality and retail sectors, but I will make this point. We have heard repeatedly from Opposition Members that they would like to abolish business rates for retail and hospitality, yet they do not have a plan to do that. To pay for it, they will somehow find £47 billion worth of “savings”. The majority of that will come through indiscriminate cutting of the welfare budget. It is not clear to me how that is a credible plan, when the annual welfare bill went up by £114 billion on their watch.

Of course, Members would not expect me to speak in a debate like this without talking about my pride in our Employment Rights Bill and our plan to make work pay. I am proud beyond words to speak for hospitality workers and for seasonal workers who will benefit from that Bill. Earlier this week, I asked colleagues in the trade union movement to run the numbers, based on Government statistics, on how many workers will benefit from the reduction of the waiting period for protection from unfair dismissal from two years to six months: 6.3 million workers will benefit from that—from protection against being unfairly dismissed, without due process, for reasons that are not good enough—and 36% of hospitality workers will benefit as well. I am so very glad that we are making rules that will benefit disproportionately the workers most likely to be exploited at work.

John Slinger Portrait John Slinger
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My hon. Friend, who continues to make an excellent speech, has referred to unfair dismissal. I think it worth putting on record that much of the debate over recent hours, days and weeks has implied that employers will not be able to dismiss people. That is simply not the case. What we are talking about here is unfair dismissal, not dismissal. This is a right that absolutely has to be at the heart of the biggest uplift in workers’ rights that any Government have introduced for a generation, or perhaps more.

Antonia Bance Portrait Antonia Bance
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I agree with my hon. Friend. Employers may continue to dismiss, as long as they do so for fair reasons and following a fair process, and good employers already do that.

My favourite measures in the Employment Rights Bill—this could be a very long speech, but I will bring it to a close—[Interruption.] I will! I will just say this: I am so proud of the ban on zero-hours contracts, and I suggest to my hon. Friends on the Government Front Bench that we should have a nice short reference period for that when the consultation begins. I am so proud of the plans on sick pay, and on fire and rehire. I am so proud of our enhanced parental leave, the fair pay agreement and the school support staff negotiating body.

In conclusion, I often say that my goal is for people in my constituency to be able to take the family out for a curry on Friday night and not worry about the cost. I want that for all workers, including the hospitality workers who are serving and cooking that curry, and the seasonal workers who make it such a pleasure to be on the beach at Blackpool or down in Brighton, having that curry. That is why we need a Government focused on growth, new rights for every worker in the Employment Rights Bill, and a higher national minimum wage.