United Kingdom: Business Competitiveness

Lord Watts Excerpts

Tuesday 1st September 2026 Lords Chamber

[Lord Pitt-Watson (Lab)]

The noble Baroness is correct that 900,000 small businesses are protected from this. There are also protections for hiring people under 21 and apprentices under 25. But there is not a specific study of this, and the reason is because we view this as a system. People pay their tax and therefore we are able to do education, transport and all those other services. Would we want that tax to be lower? Absolutely, but we will do it in a way that balances the books and maintains the fiscal discipline to which this Government are committed.

[Lord Watts (Lab)]

My Lords, is it not the case that these tax increases are required only because the last Government left us with a £22 billion deficit and hollowed out public services with their policies over many years? Is it not about time they apologise rather than criticise?

[Lord Pitt-Watson (Lab)]

I thank the noble Lord for that question. I have been trying to stay in the spirit of our new Prime Minister and to reach the greatest cross-party consensus that we can on this. What the Chancellor and the Prime Minister have said about being really careful about business costs, and making sure that business stays competitive, takes us some way in that direction. But every businessperson will tell you that you need to balance the books, and the comment from my Benches suggested that perhaps, three years ago, that was not taking place.