Sir Mel Stride

My hon. Friend is precisely right. I have set out the iniquitous impacts of the reduction of the national insurance threshold on younger people, as well as the impact that the Employment Rights Bill will have by increasing the risks of employing younger people. That is self-evident and obvious, and businesses are saying it over and over again. If an employer is put in a position where he is faced with a young person who has no career track record, and the Government’s legislation says that on day one the employee can take that employer to a tribunal for unfair dismissal—a claim that may get clogged up for two years, and for which the lawyers advising the employer will probably conclude that he should give in and pay out, even if the merits of the case do not warrant it—that is a recipe for higher youth unemployment. It is simple; it is basic economics. Look at the taxes in the Budget placed on rental income. Do Labour Members not realise that that will lead to higher rents and fewer properties on the market? Do they not understand that if the family home is taxed, we will catch a lot of people who may be asset rich but are income poor? I suppose the solution will be to allow that liability to roll up and be paid on death—yet another death tax at the hands of this Government. What is all this pain and taxation paying for? In large part, it is paying for more welfare—it is as simple as that. Scrapping the two-child cap is a mistake and it is unfair, because those who are paying taxes, working hard and doing the right thing have to take tough choices as to whether they can afford a larger family or not. It is quite right and proper that those who are on benefits should face similar choices.