Summer Jobs

Debate between Saqib Bhatti and Blair McDougall

Tuesday 7th July 2026 Commons Chamber

[Saqib Bhatti (Meriden and Solihull East) (Con)]

I thank my hon. Friend the Member for Mid Bedfordshire (Blake Stephenson) for his excellent speech. I agree with everything he just said. This is a really important debate, and the motion put forward by His Majesty’s Opposition is so significant for young people. I am the most worried I have ever been for young people and their prospects. Although I do not doubt the intentions of many Labour Members who have spoken, I sense a massive disconnect in Government policy. My right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith) spoke about the triple whammy, and I will come on to some of those points, although I am conscious of time.

There is a massive disconnect between what the Government say that they are doing and the reality on the ground. Businesses in my constituency increasingly tell me that they cannot take on young people because the costs are so high. On the recent polling day, a business owner came up to me while I was knocking on doors and said, “I just don’t know if it’s worth it any more.” It struck me what a sad state of affairs that is: someone is grafting away and running a small business; he wants to do the right thing and hire people, and he is unable to do so. That is significant.

Three things have had a huge impact on the labour market. If there had been just one intervention, there would have been some impact. It is basic economics that interference in the labour market will have a consequence: naturally, business owners must make logical decisions and will decide to adjust their employment numbers accordingly; they will do what they can afford, and they must make a profit. But there has been a triple whammy with the impact of business rates, national insurance—the jobs tax—and the Employment Rights Act, possibly the single most damaging piece of legislation to business from any Government. We will see the impact of that.

The hon. Member for Banbury (Sean Woodcock) asked which bits of the ERA the Opposition would repeal. Well, I would repeal everything that has to do with the liberation of trade unions. That legislation is not about employment rights; it is a love letter to trade unions. It is there to ensure that trade unions and the hand of the state can interfere with private enterprise. We are starting to see the consequences, which will only increase. My right hon. Friend the Member for East Hampshire (Damian Hinds) made this argument logically and eloquently, but when a business owner must make a decision—he used the hypothetical example of the 18-year-old and the 30-year-old—they will of course take the individual with more experience. That individual requires less training, has proven that they are resilient, and has proven that the opportunity cost of hiring them is much lower than with the 18-year-old.

When I ran a business, I loved hiring apprentices and young people—they had a hunger—but small businesses can only do that within the parameters of what is affordable and within the profit they can project. The consequence of the Government’s policies is that youth unemployment is high, at 14.5%—much higher than when they took office in 2024—and among 16 to 17-year-olds it is 30.7%. Those are huge numbers, and I worry about them.

I recently held a debate in Westminster Hall on the impact of the Government’s policies on rural pubs. As has been alluded to, hospitality, leisure and retail are great employers—not just for Saturday jobs, but of young people generally. The impact of those policies has meant that, if those pubs are staying open, they are not able to hire more young people. It is going the opposite way. We are seeing the impact.

As a number of hon. Members have said, there is dignity in having work. It gives young people the soft skills—or the soft-hard skills, as my right hon. Friend the Member for East Hampshire said—and gives them an opportunity to get ready for life. There might be other, structural issues, such as getting on the work ladder, but that first job has such a positive impact on young people. We have heard about sweeping floors, but whatever the job, it ensures they are able to work.

I still remember a 16-year-old I hired once. He did not have his tie done up or his shirt tucked in, but I took a risk on him—and it was a risk, because I had to train him up. I said to him, “Young man, you’re going to have to tuck your shirt in and do your tie up.” Only two years later, when a grad came in for interview, he told them, “Tuck your shirt in, and do your tie up.” That just made me laugh—I thought, “Look how far that young individual has come on.” He went on to do other forms of employment, go up the job ladder and get higher wages. I take great pride in all the young people I employed and trained.

Flexibility in the labour market is important, as is ensuring that the Government do not increase the burden on businesses. I come back to the disconnect. The Minister who opened the debate, the hon. Member for Rhondda and Ogmore (Chris Bryant), who I have a great deal of time for, made a valiant effort—

[The Parliamentary Under-Secretary of State for Business and Trade (Blair McDougall)]

Not me?

[Saqib Bhatti]

I have lots of time for the Minister who will be closing the debate as well, but I have not heard him speak yet, so I will reserve judgment.

The hon. Member for Rhondda and Ogmore made a valiant effort at defending the Government’s record, but he did not acknowledge that the unemployment rate has gone up—as a natural consequence of the Government’s interventions—and there is no indication of how they are going to get it down. With the best will in the world—however much money they spend training people up and doing interventions—if businesses are not hiring, the unemployment rate will stay where it is. I invite the Minister to address that point in his closing speech. What reassurances will he give to 16-year-olds, 18-year-olds and other young people who want hope and want to build their lives?

I will end in a moment, because my hon. Friend the Member for Aberdeen South (Douglas Lumsden) wants to speak. Recently, I was at the opening of the Bluebell Wood café in north Solihull. It was an idea that I came up with, and I worked with Andy Street, the former Mayor of the West Midlands. Hospitality is a big employer in my constituency—we have the National Exhibition Centre, the largest regional hotel, the Hilton Metropole, and many other businesses—and they all talk about the need for skills. We talked to University College Birmingham about bringing to north Solihull a training restaurant that would train top-level chefs and “maître d’s”. When I cut the ribbon, the main chef said that they were training level 1 apprentices to do level 3 work. I invite you to come and visit, Madam Deputy Speaker, if you would like—top football clubs and top restaurateurs go there to recruit. But there have to be jobs at the end of the line.

This is so important. I urge the Government to reflect on their policies and consider the impact they have had on the future prospects of young people.