Contribution
“Yes”—it is a small word, but it is absolutely crucial to creating a successful economy. Yes to that first investment; yes to opening that business; yes to giving that young person a job; yes to taking that risk; yes to expanding; yes to investing—all those things are so crucial to getting a successful company and a successful economy. However, the Government cannot build an economy by making it harder for businesses to say yes. The economy responds not to a Prime Minister saying, “We must have growth,” and his intentions, but to the incentives that Ministers put in place—or, in this case, the disincentives.
We have heard it mentioned before—in relation to the jobs guarantee, for example—that the Government are trying to incentivise people into work, while at the same time disincentivising businesses from taking on people. That is like pressing the accelerator while putting on the handbrake. The Government have given so many businesses a reason to say no. The NICs increase, the business rates increase, the minimum wage increase and the red tape in the Employment Rights Act are a toxic concoction for our businesses, and are having a devastating effect.
Let me take the examples of the café in Burbage, the restaurant in Barwell and Earl Shilton or even the gym in Hinckley. They have had the jobs tax. They have had the minimum wage go up. They have had employment red tape added. They have had business support changed and taken away. They have had business rates go up. They have had their energy bills go up—there was no support in the Budget for that. Is it any wonder that the ONS has said that from October 2026, some 16% fewer hospitality businesses have been created? Across the entire economy, business creation is down by 3.5%.
Let us turn to the wider argument about the environment. As my constituency neighbour, my hon. Friend the Member for Mid Leicestershire (Mr Bedford), has said, business confidence has been down for seven consecutive negative quarters. Businesses are losing the confidence to say yes. Why? Because of the employment costs. In a report by the Institute of Chartered Accountants in England and Wales, 53% of businesses cite labour costs and 41% cite taxation. That figure is double what it used to be.
Young people have been mentioned a lot. There are 981,000 people aged between 16 and 24 who are not in education, work or training. That is 30,000 more than last year. It is almost 1 million people, for the first time since 2013. That compares unfavourably with the likes of EU countries; for the first time ever, we are above the EU average.
Why does all this matter? The contribution from my hon. Friend the Member for Hornchurch and Upminster (Julia Lopez) from the Opposition Front Bench got me thinking. We can count the trees that have fallen, but we cannot see the forest that has never been planted. What do I mean by that? We can see the 12,000 job losses in Poundland. We know that Morrisons has had to lay off 5,000 people. Jaguar Land Rover has had to lay off 4,000 people. Claire’s on the high street has had to lay off 2,500 people. Whitbread, which runs Premier Inn, has had to lay off 3,800 people. We can also count the young people who are going abroad. We know that 250,000 people went, of whom two thirds were under the age of 35. But what about the businesses that never opened? What about the investment that was never made, the job that was never offered, or the apprenticeship that was never started?
The cost of this Labour Government’s “no” economy is so great. This is about the opportunity that has never been taken, and the future that we could have had. That is not recorded in any figures. No matter how hard this Government tell businesses to hire, they cannot force people to be hired, or force young people to stay. We cannot build a “yes” economy by giving businesses thousands of reasons to say no. That is why I support the motion.