Bus Services (No. 2) Bill [Lords]

Debate between Scott Arthur and Jerome Mayhew

Report stage
Wednesday 10th September 2025 Commons Chamber

[Jerome Mayhew]

I am grateful, although I am not sure whether that was an intervention on jeering or cheering and the difference between them. I will go so far as to say that I am not in a position to make economic spending commitments at the Dispatch Box. Although we are supportive of the principle, that is why we will not vote for something that writes a blank cheque for the future, because at least the Conservatives are trying to be economically responsible.

Without amendment, the Bill is a missed opportunity in relation to bus stop design and disability access. It is a missed opportunity in relation to antisocial behaviour on buses and bringing that in line with the protections already enjoyed by rail passengers. It is also a missed opportunity not to focus on passengers as the primary object of all actions undertaken as a result of the Bill, particularly in relation to rural areas.

The Bill is not just a missed opportunity; it is also, in its current drafting, damaging for the future prospects of the provision of bus services, because it risks exposing local transport authorities to potential bankruptcy without support from the Secretary of State. That is, in the first instance, in terms of oversight of plans for franchising—particularly for small local transport authorities—and giving them the all-clear. Secondly, if franchise systems are set up and then they fail to provide over a prolonged period, the Secretary of State must surely be able to step in and provide those services—if we are interested in the experience of passengers as opposed to the organisation. I have raised those two issues consistently throughout Committee and earlier on today. They are significant, genuine concerns that prevent the Opposition from supporting the Bill in its current form.

[Dr Scott Arthur (Edinburgh South West) (Lab)]

I thank the shadow Minister for the way in which he is approaching the debate. Local authorities all over England are letting contracts every single day, and all manner of contracts could go wrong. What is peculiar about this power that means there is a risk of bankruptcy?

[Jerome Mayhew]

I am sorry that the hon. Member was not in his place throughout the course of the debate, as he would have heard that a franchise is not a normal contract. Under an enhanced partnership or a standard operating contract, that is exactly so: a contract is let and the commercial risk lies with the provider. The challenge with franchising is that the commercial risk is transferred 100% to the taxpayer, because the local transport authority is no longer letting a commercial contract; it is buying in services for a price, with the commercial risk lying with the taxpayer. That is the crucial difference. I am glad that the hon. Member put his finger on that, because I am as worried as he is about it.

Finally, I will mention the comments of the hon. Member for Brighton Pavilion (Siân Berry). We do not agree on many issues, but I do agree with her on this. She said that a lot of good amendments were tabled by Opposition parties—certainly three parties; there were sadly none from Reform, which would not know a transport policy if one got up and slapped it in the face. The hon. Lady came up with some good ideas, and even the Liberal Democrats came up with something or other. As for the Conservatives, we came up with good idea after good idea, yet until now they have all been rejected by the Government. I look forward to the Minister’s response and to his concession on all those good ideas.

Finance Bill

Debate between Scott Arthur and Jerome Mayhew

2nd reading
Wednesday 27th November 2024 Commons Chamber

[Jerome Mayhew]

My hon. Friend is absolutely right, and there is a point worth making here. Since covid, the private sector has improved productivity by about 6%. Productivity in the public sector has yet to improve, although before the general election it was starting to do that.

[Dr Arthur]

Will the hon. Gentleman give way?

[Jerome Mayhew]

I will not. I want to make some progress because I have been quite generous in giving way.

The OBR says that more than 50,000 jobs will be actively lost as a direct result of the decisions Members on the Labour Benches are about to take. I think that is an underestimate. I have been talking to businesses in my constituency of Broadland and Fakenham over the past few weeks and, as a former entrepreneur, I have been taken aback by quite how badly the tax and spend decisions of the Labour party have gone down with my small and medium-sized employers. Their accounts to me suggest that those choices are affecting their decisions on employment, and particularly on employing young people.

One employer said to me just two weeks ago that 18-year-olds are harder to employ than, say, 25 or 26-year-olds because overall more of them will fail in their job as they get used to the working environment. Employing 18-year-olds used to be worthwhile because the national minimum wage was lower and national insurance contributions did not have to be paid on the first £9,200 of their employment. That advantage has been removed and it is now disproportionately more expensive to employ an 18-year-old than older members of staff. That is a real-life case, where the employer told me they will stop employing young people in their business. Is that really what Labour Members wanted to achieve? That is what is happening already.

[Dr Arthur]

I am not quite clear what the hon. Gentleman is saying. Is he advising businesses in his constituency not to employ 18-year-olds, or is he telling 18-year-olds in his constituency that he wants them to be paid less?

[Jerome Mayhew]

I am not telling anyone anything; I am reporting what businesses are telling me. As a direct consequence of the actions of the Members on the Labour Benches, young people are not being employed who otherwise would have been. The OBR says that will lead to more than 50,000 jobs being lost. Time will tell, but I think that is an underestimate.

We have a reduction in recruitment, a reduction in the employment of young staff, a reduction in investment and, as a result, we will have a reduction in growth over the course of the forecast period. But worse than that, we will have a reduction in living standards. This cost of living crisis, which has now been caused by Labour, will reduce living standards by 1.25% by 2029. That reduction is a direct result of the Budget, so if Labour Members vote for this Bill, they will be voting for increasing the cost of living crisis by 1.25%.

None the less, we have seen some increases: debt costs are increasing; inflation is increasing, which will exacerbate the cost of living crisis; and mortgage costs are increasing.