Dame Harriett Baldwin

I have news that will perhaps come as a bit of a shock to the hon. Gentleman: it is his party that is in power, and it should be his Front Benchers and the Chancellor he should be having that conversation with. Labour market economists at the Resolution Foundation—not normally considered to be right-leaning, by the way—have noted that when minimum wages rise faster than productivity, employers tend to favour experienced workers, disadvantaging young applicants. The very people Labour claims to champion are the ones being priced out of the labour market. Thirdly, Labour’s business rates reforms have piled pressure on our high streets. As we have heard time and again in this debate, it is hospitality, retail and small firms that traditionally give young people their first job. Indeed, my first job was behind the bar at a now defunct pub; it taught me an enormous amount, and I was very grateful for the opportunity. The Confederation of British Industry has said that rising business rates “suppress investment and hiring”. When fixed costs for employers increase, their capacity to hire is reduced. Lastly, and perhaps most damaging of all, is Labour’s Employment Rights Act 2025, which introduces sweeping day one rights across the board. The Government’s own economic analysis of the Bill says: “higher labour costs could reduce demand for work, damaging the employment prospects of the same workers the package is trying to support…the risks are highest for workers with the weakest attachment to the labour market…and the youngest workers, since they are still gaining experience and skills.” This is not a partisan point—this is the Government’s impact assessment of their own legislation. According to the Youth Futures Foundation, “the risk profile of recruiting young people has increased”. The Chartered Institute of Personnel and Development reports that employers are already reducing recruitment plans, particularly for inexperienced workers, due to regulatory uncertainty.