Andrew Griffith
MP for Arundel and South Downs · Conservative · United Kingdom
“Thank you, Mr Speaker. First, let me pay tribute to my own predecessor, my right hon. Friend the Member for Central Devon (Sir Mel Stride), and let me welcome the Chancellor to his role. He is already responsible for the highest borrowing costs for 28 years.”
“The Chancellor does not know the answer. On the Treasury’s own statistics, it would take 38,000 average income tax payers to make up for the loss of Chris Rokos. That is a lot of breathing space paid for. It means higher taxes for everyone else, or lower public spending. We know what Labour will choose.”
“I welcome the moratorium on, and potential saving of, West Sussex, in response to my opposition and that of thousands of residents who did not want our historic county cleaved in two.”
“Friend the Member for Droitwich and Evesham (Nigel Huddleston), were involved in the commencement of the planning for the negotiation that we are discussing today.”
“Without that, the Government could never have launched the consultation this morning on deepening our trade relationships with Indonesia, the Philippines, the UAE and Uruguay—all countries with whom the UK should seek closer ties. The next Conservative Government will go further and faster on trade.”
“Finally, I look forward to hearing an unabashed welcome for the benefits that will flow to his Maidenhead constituents from the Liberal Democrat spokesman, the hon. Member for Maidenhead (Mr Reynolds). Had his party’s policy been in force, this agreement could not have been struck at all.”
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“There are many elements of this strategy that we do welcome. I am pleased that the Government have continued the work the former Chancellor and I undertook on access to capital, and it is good to see an emphasis on trade and international co-operation, particularly with the document’s focus on Japan and Saudi Arabia. I am glad that the Government are implementing the O’Shaughnessy reforms and turning the NHS into a global platform health data research service. It is encouraging to see the weight given to autonomous cars, although it is curious that there is no mention of the opportunity of driverless trains. I am disappointed that the life sciences and engineering biology receive relatively modest mentions.”
“Yet there is no respite for businesses from the decisions that have been taken. The Secretary of State talks about restoring stability, and that may well be what was written for him, but he, like me, listens to businesses, so he cannot possibly believe that. The Government have hiked taxes by £40 billion when they promised not to, and gilt rates are higher today than after the mini-Budget; they fiddled the fiscal rules and are now running out of headroom, all while setting up state investment banks in a repeat of the previous Labour Government’s private finance initiative. Higher taxes, higher energy costs and more red tape on employment—the proposals set out in this document are simply insufficient at a time when businesses need far greater measures to defend them from the minefield that Labour has left out.”
“I thank the Secretary of State for advance sight of his statement. It is always a good day when we can talk about our wonderful and innovative British businesses, but, sad to say, this strategy has taken the best part of 12 months to appear. That is how long British industry has had to wait for this cut and paste industrial strategy; 158 pages mostly copied and pasted from previous sector strategies and the science and technology framework, which do nothing to alleviate the pain and turmoil that Labour has already inflicted. In those 12 months, Labour has crashed the economy— [ Laughter. ] Labour Members are laughing, but unemployment has been up in every one of the nine months of this Government, with hiring and investment down. I understand that this document is printed on 40% recycled paper—very much like its content.”
“This House has a duty to restore faith in our democracy, to protect our hard-fought sovereignty and to say no to the overreach of blank-cheque ministerial powers, such as those in the Bill. This House must tonight reject the Bill, as we will seek to do, to stop the Government from forsaking Britain’s ability to carve and determine its own future. Question put. The House proceeded to a Division.”
“The mild-mannered Delegated Powers and Regulatory Reform Committee in the other place delivered an uncharacteristically scathing rebuke, branding it a skeleton Bill that grotesquely shifts legislative power from Parliament to Ministers. It shackles British businesses, already bleeding out, to EU standards, stifling innovation. It is a solution in search of a problem, and under the Bill—under the measures being brought forward by the Government today—there is no room for the sort of robust scrutiny that we were sent here by our constituents to do, and no accountability. It is all in the hands of Ministers who keep breaking their promises. Let us be clear: Labour’s pattern of broken promises does not just set Britain back; it erodes the trust that people have in politics.”
“The Government boast of three trade deals in three weeks, but that is a hollow boast when not a single one is backed up by any detail. The Trade Secretary, who is noticeably absent today, is no doubt trying to make true what his Prime Minister has already announced. The Paymaster General confirmed to me in a written answer this afternoon that British businesses, exporters, travellers and tourists will not benefit from e-gates, as we were promised. Yet the Government, in all their naivety, are legislating to hand control of our product regulations back to Brussels. At every stage of scrutiny, this Bill has been found wanting.”
“While this Government’s track record is frankly disastrous, I still give them the benefit of the doubt when they say they wish for growth, but for the benefit of Labour Members—who I rather suspect have not read the detail of this Bill; they have been whipped into supporting it—let me spell out what it does. The dynamic alignment clauses in the Bill would mean that every time the EU tweaked its standards—shaped by the interests of 27 other states with their own different mix of businesses, often in competition with ours—Britain would have to follow suit. There would be no more bespoke trade deals around the world, as the Prime Minister and his team would be lame-duck negotiators, with the EU President holding the real strings.”
“Britain has now fallen victim to Labour’s EU surrender summit, giving up our fishing rights and our ability to make our own laws. I am happy to concede that this is no longer a Trojan horse of a surrender Bill, because it is now in plain sight. It is absurd that any Government would give up the power to shape our own regulations and meet the needs of our own consumers, electors and businesses. Those economies that will succeed in the future are those that are agile, that can adjust dynamically to events and that can tailor their own rulebook to their own particular needs.”
“Let me place on record my thanks to my hon. Friend the Member for West Worcestershire (Dame Harriett Baldwin), my right hon. Friend the Member for Basildon and Billericay (Mr Holden) and my hon. Friends the Members for Bognor Regis and Littlehampton (Alison Griffiths) and for Chester South and Eddisbury (Aphra Brandreth) for their work in holding the Government to account on this Bill. On Second Reading, I said that the Bill was the archetype of everything that is sometimes wrong with Westminster, but now, after months of debate in both Houses, I fear that it is even worse. In 2017, the now Prime Minister said that his party would respect the outcome of the referendum in which 17 million people voted to leave the European Union.”
“Helen Dickinson, the CEO of the British Retail Consortium, said that businesses are “left with little choice but to increase prices”— as we have seen today—“or to reduce investment.” The CEO of UKHospitality, Kate Nicholls, said that these measures “will simply force businesses to cut jobs, freeze recruitment, cancel planned investment, reduce trading hours and, in the worst-case scenario, close their doors for good.””
“Not one single person around the Cabinet table truly understands those pressures, yet this Labour Government have crossed the road to start a fight with Britain’s businesses. When it comes to business, the Government have broken every one of their promises. Members on the Government Benches looked business owners in the eye at the election and told them that they would be on their side, but it took barely 100 days for this Labour Government to revert to type. At the autumn Budget, the Chancellor slapped a £25 billion jobs tax on business, meaning that employers will have to pay an additional £900 a year for an employee on the median wage, according to the Institute for Fiscal Studies. Only a few weeks later, the Business Secretary tabled the now 300-page, trade union-dictated Employment Rights Bill, drowning employers in red tape.”
“Allow me to paint a picture. A small business owner navigates the early morning darkness to their high street shop. They twist the keys and lift the shutters. They turn on the lights, the card machine, the heater and the shop music. They open the door in time for their first customer of the day, putting to the back of their mind the question of how to meet the rising costs placed on them by this Government—the taxes they have to pay before they open that door and the unreformed business rates, with many more than doubling. How will they pay the jobs tax on their staff? How will they ever keep their business intact when they seek to pass it to their children after they have gone?”
“I beg to move, That this House regrets that unemployment is rising and causing misery for young people in particular, that this Government has displayed a negligible understanding of business and that investors and entrepreneurs are being driven overseas; further regrets that over 200,000 businesses have closed since Labour took office, as a result of the Government’s policies to raise employers’ National Insurance contributions, in breach of the Labour Party manifesto commitment, to scrap Business Property Relief, to impose £4.5 billion of additional costs on businesses through the Employment Rights Bill and increases to business rates; and calls on the Government to urgently change course to support jobseekers, small and medium-sized enterprises, family businesses and entrepreneurs who take risks to create wealth and jobs that benefit people across the country.”
“How tragic is it that from Gosport to Gloucester and everywhere between, businesses on our high streets are closing? This Government do not understand that. If they do understand, they do not care, and if they care, they have not acted. The message from this Government to anyone willing to put their capital, time and energy on the line by taking risk to create wealth as a business owner is abundantly clear.”
“My hon. Friend makes an incredibly important point. I believe that all of us come to this House to try to do our best and to grow the economy, but any Government faced with that terrible metric about the failure rate and formation rate of businesses would be acting immediately, with haste, and reversing so many of the measures. The choices this Government have made have delivered precisely the outcome my hon. Friend describes.”
“This Government are perfectly positioned to achieve the unbroken track record of every Labour Government in modern history of leaving office with unemployment higher than when they started.”
“My hon. Friend makes exactly the right point about that triple whammy, and about the cumulative effect of changes and the consequences—potentially unintended—that manifest themselves most acutely in industries such as UK hospitality and retail, which have the great virtue, among many others, of contributing to the character of the places in which we live and giving so many young people their first step on the ladder of opportunity and their first experience of work. Without those businesses, it will be inexorably harder for young people. That is one reason that it is of such great concern that the number of people employed on payrolls under this Government has already fallen by 100,000, with a faster rate of decline in the first quarter of this year.”
“It should be the Government’s job to get out of their way and to help the business builders, not the blockers, but this Labour Government understand none of that. Instead of leaving business to get on and flourish, they have erected a blockade of bureaucracy and taxes that they promised would never come. They have declared war on employers across this land from the ramparts of Westminster.”
“It is not just that this Government do not understand the mechanics of business; they do not understand and value the principle of business. Running or investing in a business at its core is a profound act of human courage—the triumph of optimism over inertia, and a mindset of someone solving problems themselves rather than waiting for permission from others. It is about embracing risk knowing that there are no guarantees, no bail-outs and that no one is coming to the rescue. When enterprise succeeds, such people create the wealth that funds our public services. Every time a Minister dispenses money and largesse in Whitehall, as this Government are doing at record velocity, they can do so only because a founder, an entrepreneur, or a businessman or businesswoman, took that leap.”
“There could be no better example of that than the vindictive family business and family farm death tax, which will carve up successful businesses as and when they are handed down to the next generation. Why do we think this vindictive policy exists? One of the more benign interpretations, to be charitable, is simply the dearth of business experience in the Labour Cabinet. It has to be said, though, that the Cabinet members are world-class in their understanding of, and potential avarice in relation to, trade unions. Perhaps that is why the Secretary of State, who has not deigned to be here with us today, is currently undertaking the most expensive work experience placement in history at taxpayers’ expense at British Steel in Scunthorpe.”
“My right hon. Friend is exactly right. He will correct me if I am wrong, but as I understand it, one millionaire is leaving our wonderful country every 45 minutes. That is to say nothing of a generation of young people who are yet to have their opportunity. How tragic it would be to think that young people see greater opportunity—notwithstanding their birthright of being born in this wonderful country—in other parts of the world than is present on their doorstep, in their communities and in the heart of their families. It has to be said that this Government’s combination of actions are sending a clear and regrettable message to those who seek to create wealth: “Don’t bother. Don’t even try.” This socialist Government do not want people to succeed.”
“There will be long delays for employment tribunal hearings; in some parts of the country, the wait for a hearing is already approaching 18 months. Even according to the Government’s own estimate, on top of every other measure, there will be a headwind cost for business of an unwanted £5 billion a year.”
“That is just one of the many barrages faced by businesses that are sapping confidence and producing some of the very worrying statistics that we are seeing. We could, for instance, move on to the “Unemployment Rights Bill”, which is an egregious example of red tape and state intervention and overreach. At this point Labour Members are normally uncharacteristically quiet, because they are aided and abetted to the tune of £31 million by the trade unions. The Bill shackles the hands of employers in pubs, bars, garden centres, grocery stores, butchers, hairdressers —businesses rooted deep in our communities—with little clarity and no lead-in time. Seasonal work could be made impossible by the Bill. It is certain that compliance costs will rocket.”
“My hon. Friend, who is himself a very distinguished and successful businessman, knows exactly the importance of that intangible quality of confidence that the Government have your back and you will not wake up in the morning and be hit with a £25 billion jobs tax—on which subject there was not one word, not one syllable, in the Labour party manifesto. We toured the studios jousting with Labour Members and issuing warnings, but we were met with a repeated barrage of denials in respect of their £25 billion jobs tax. [Interruption.] The Ministers are chuntering, and there is probably a fair amount of chuntering to do if they have to explain an inability to balance the public finances along with an attempt to do so by means of a set of vindictive and arithmetically incorrect taxes on business. We can move on from tax.”
“No one would believe, Madam Deputy Speaker, that you would implement such terrible measures without a proper impact assessment. More significant, however, is the fact that we have heard not just the voice of my hon. Friend the Member for Bognor Regis and Littlehampton (Alison Griffiths), representing those important seasonal industries, but the voice of employers across the country, who have pointed out that it will no longer be possible for seasonable and flexible work to deliver the economy that we need.”
“It would be far better for them to shelve the Bill, to listen, to learn and then to come back so that we could use the proper mechanisms of this House to do our jobs for all our constituents to avoid the unintended consequences and the damage that I do not believe anyone would want.”
“My hon. Friend is exactly right. If Labour Members were honest enough to do so, they would admit that the Bill is a rushed piece of legislation. It was introduced because of an arbitrary promise to do so within 100 days, and it was introduced at half its current length, which means that 50% of the words that it now contains—the red tape that our businesses will have to implement and wrestle with for years to come—did not even benefit from scrutiny in this place. Many of the powers in the Bill are not fleshed out or clarified. We will wreak great havoc and uncertainty on business if the Government are determined to proceed.”
“Despite legion opportunities that I, and others, have given Ministers to name a single business that is in favour of all the measures in the Bill, answer still comes there none.”
“One has to celebrate small mercies, and I am delighted by the hon. Gentleman’s conversion to the cause of free trade. Free trade is what has lifted billions of people in the world out of poverty. It has made us the great country that we are today. The business in the hon. Gentleman’s constituency that has formed such a clear view has obviously benefited from considerably more detail than the House, so perhaps he will share its name. We would be very happy to hear about the details of the trade agreement that has been reached. Perhaps, in having that conversation with his local business, the hon. Gentleman would like to engage in a discussion about its views on the Employment Rights Bill.”
“I hesitate to stray into the matter of fishing, which I suspect we will debate many times in the future, but I note that those on the other Government Benches next to us tabled an amendment, which has not been selected for debate but which seeks to shackle our small businesses further by having us reverse across a much broader range of topics than the pass that the Government already sold earlier this week, so that we become a taker of rules from Brussels, and our small businesses, entrepreneurs and founders are crushed by the red tape that would originate there.”
“Once again, my hon. Friend has demonstrated his deep and real knowledge of business, having himself, in a past life, employed more than 1,000 people. One rather suspects that taking that risk, having that responsibility and shouldering that burden, moral and financial, is greater than the entire aggregate responsibility of Labour Members for hiring anyone. My hon. Friend has made the right point about who will end up on the receiving end of the higher unemployment. It will be the young, looking for their first opportunities, and it will be excluded and vulnerable groups on whom a benign employer would today take a chance—but not if that chance is likely to lead immediately to being at the back of an 18-month-long queue for an employment tribunal hearing.”
“The failure to learn from that point will once again lead to exactly the same outcome, which is why every Labour Government have left office with unemployment higher than where it started. In his response, the Minister may wish to confirm that this time will be different and perhaps lay out exactly why it will be different, but he has a job of work to convince us and, more importantly, every employer in the land that that is the case.”
“I am afraid that to make those points is to misconstrue wilfully what is actually in the Bill. We have a very settled and balanced position of employment rights that dates back to before previous Labour Governments as well as the Government in office before the election. It strikes what will always be a difficult balance between offering employees the chance to enter the workforce and the ability of businesses, and of the public sector and others, to hire and to operate in a way that is profitable. It does nobody any favours to think that we can, merely by passing words of statute, change the outcomes in a way that advantages the most vulnerable, who are the youngest employees.”
“Although one does not want every single sector to be represented in this place, the compensatory mechanism for that involves consultation and diligent impact assessments. In introducing legislation, this Government have been serially criticised for the way that they have casually discarded such measures, and the Treasury maths simply do not add up.”
“I thank the hon. Gentleman for making that very perceptive observation. I hate to say this, but I was not making a casual point; it was a considered point. When we think about how this House continues to legislate and tax in a way that reduces economic growth, that does not celebrate a culture of entrepreneurialism and founders, and that is leading to higher employment, with 100,000 fewer people on payroll than there were a year ago, we should all look deep into our souls. What is the endemic failure in Parliament, and of this Government in particular, that is leading so quickly to precisely those outcomes? It is sad to say that sometimes there is a lack of voice for business.”
“I do indeed agree. We ought to confront how we have got here—I acknowledge that it has happened over a period of time—with so many young people unable to work, get an education or be in productive training. That is a headwind on the economy, and a moral failure of us all. The question that we should confront ourselves with is this: what are we doing each and every day in this place to give opportunities to 1 million young people and the 9 million others of working age who remain stubbornly on welfare, while improving our public finances and making the maximum use of the wonderful resources, education and skills of the British people, so that we can grow our economy and be the prosperous nation that we once again deserve to be?”
“She is right, and that is one of the chilling headwinds that anyone who wants to grow the economy, and anyone who serves in the wonderful Department for Business and Trade or our Treasury, should confront. We should be going back to officials and challenging exactly that. How can we achieve a culture vibe shift on growth and entrepreneurship? That is the best contribution that we could all make.”
“Yes, I am enormously worried. We have to understand and make the connection that it is only the private sector that truly creates sustainable jobs. We need people to work in our wonderful public services, but ultimately growth and opportunities come from the expansion of the private sector, which is most encapsulated by female-led businesses, such as those in the hair and beauty sector. They often survive on small margins, deal with lots of different pieces of regulation, and try to keep our high streets and communities alive—as well as performing, I suspect, rather a better service for my hon. Friend than for me and some other colleagues. It is a valuable and vital industry.”
“Friend the Member for Herne Bay and Sandwich (Sir Roger Gale) is quite right: would it not be good if the Minister could use the ample time that we have this afternoon to consult, and to bring forward some sensible answers that will give us all confidence that we are going to see a Government who are properly on the side of business?”
“Friend the Member for Broadland and Fakenham (Jerome Mayhew) talked about earlier, including the changes to the tax system and other changes; the damage that has already been inflicted on the economy; the headwinds on costs that we saw this morning, with inflation 75% higher than the Bank of England’s target rate, which will mean that interest rates are higher for longer; and the failure to reform business rates. There is an opportunity to revisit bringing forward specific proposals on employment to enduringly reduce business rates, if the Government feel a burning desire to do so. My right hon.”
“Let us hope that the Minister does indeed have an answer. I am somebody who always travels optimistically, and though we have sparred on the important subject of the 300-page, 120,000-word Employment Rights Bill, it is never too late. That Bill is undergoing scrutiny in the other House as we speak, and the Opposition would welcome and support the Government’s shelving it until we have dealt with the cacophony of headwinds that my hon.”
“Many businesses will, from the start of April this year, not only face a payroll increase of around 10%—in an economy without such a level of topline growth, so that hits margins directly—but, because of the failure of the Government to maintain business rates relief at anything like the same level for our retail, hospitality and leisure, have seen their business rates double. Imagine that all hitting a business on 1 April this year.”
“Of course, I agree with my hon. Friend, but it does not actually matter what I or others think, because the reality is that the data does not lie. As of now, we have 100,000 fewer people on payroll than we did 12 months ago, so the data is already telling us about the cumulative chilling effect of those measures. That is perhaps unintended. We learn today that the Chancellor and the Deputy Prime Minister are at odds, and perhaps the Business Secretary is the third leg on that stool, with each of them bringing forward measures that are enormously damaging to business. They are perhaps not adding up the sums and seeing eye to eye to understand the lived experience of what it is like to be a business on the receiving end of all of those changes, cumulatively and all at the same time.”
“To be charitable, we have found a rare example of the Government actually having the back of a business and supporting it, but would it not be wonderful if they could extend that to much larger sectors of the economy, such as financial and professional services, retail and hospitality industries and even our manufacturing industries, as they wrestle under the cosh of uncompetitive energy costs, so that a business in Birmingham, west midlands, will face an industrial energy cost four times higher than that of a competitor in Birmingham, Alabama?”
“I am enormously glad, and we should be balanced, that we have found something that goes the other way. I am not sure if one can subsist entirely on a seed potato—it may have been tried historically, and not with enormous success—but I congratulate the hon. Member on the success of his seed potato industry.”
“Most of us would put higher energy costs into the liability rather than the asset column of our economy. We are debating business, unemployment and the economy, and I hope the Minister will devote an ample proportion of his response to the measures this Government will take to remove the yoke of uncompetitively high energy costs, which is simply crushing so many British manufacturing businesses.”
“Labour has stolen any incentive for success from a generation of home-grown entrepreneurs. We really cannot go on like this. The gulf between those who create wealth and those who govern us has never been larger. Only one Cabinet Minister, the Secretary of State for Scotland, has any real experience of running a business. Trying to find business experience among those on the Labour Benches is like trying to find a tax the Deputy Prime Minister does not think needs to be raised. It is no surprise that, according to the Institute of Directors, over two thirds of businesses are now pessimistic about the future of the economy.”
“They will be forced to carve up, slice up, or close up shop forever to meet the demands for business property relief and inheritance tax. Analysis from CBI Economics for Family Business UK estimates that this measure alone will result in 208,000 job losses and a £2 billion net loss to the Treasury. Again, I hope the Minister will address that directly when he responds. Family Business UK’s chief executive, Neil Davy, says that “far from stimulating economic growth” this policy “will achieve exactly the opposite.” He is right. To illustrate just how ridiculously flawed this policy is, it applies to families here in the United Kingdom, but it does not apply to overseas businesses that operate here, or to those owned by private equity or foreign corporate owners.”
“There are many Members on the Opposition side; sadly, there are disappointingly few on the Government side. Given the paucity of business experience on that side, it is probably appropriate for there to be more listening than talking on the Government Benches. Let us imagine—and, Madam Deputy Speaker, you will know this from your wonderful constituency—that despite all the headwinds this Government have imposed on business, an entrepreneur does well, grows their business into a successful operation and wants to hand it down to the next generation after they are gone. Those people, who have taken risks to create something good for society, are now at a competitive disadvantage as a result of the family business death tax.”
“The hon. Member is exactly right. When I describe my constituency as “South Downs”, people occasionally assume that it is in Northern Ireland, but all of our young people deserve the best opportunities. We know that the best outcomes for young people are when they can enter the workforce, and that if, when they graduate from school, college or an apprenticeship, those young people cannot immediately find productive work, the scarring impact of that can run through the entirety of their adult life and they never catch up with their peers’ earnings. That is why it is so important that we have a healthy labour market, and a healthy labour market relies on the ability of employers to feel that they can take a chance, give people opportunities and benefit from that. I want to make some progress, which I suspect may be popular.”