My Lords, just two days ago, the Prime Minister stated that he will
“get people back to work”.
It is therefore extremely distressing that just 12 hours later Stellantis announced the closure of its plant in Luton with 1,100 jobs put at risk. The loss of these jobs has driven the Secretary of State to come to the other place in an attempt to mitigate uncertainty, but we have to ask: what more bad news is to come?
We hear the Government talk about growth and helping business, but that does not appear to be happening. We are committed to the reality that business matters. It matters for our high streets, our economic growth and, critically, for people’s livelihoods. Although we welcome the Government’s Statement in acknowledging this terrible situation, this process has taken far too long. We hear that, on parts of the Government’s employment Bill, businesses were not even consulted. On the Budget, which will deliver the highest overall tax burden since 1948, the engagement on the national insurance jobs tax was low—a tax raid on businesses of £25 billion that will reduce wages, stifle growth, deter investment and likely bring about a return to inflation and a higher cost of living for everyone.
When in government, we demonstrated unwavering support for businesses during the unprecedented challenges of the pandemic. Understanding the difficulties they faced, we provided 100% business rates relief to the retail, hospitality and leisure sectors, ensuring their survival during the worst of the crisis. Post pandemic, we extended our commitment with a 75% business rates relief policy, helping businesses rebuild and adapt to the new norm. We made it clear that, had we remained in government, this level of relief would continue.
However, the Government have chosen a radically different path. They have slashed business rates relief to 40%—a decision that we believe will be harmful to the recovery of our valued high streets and communities. This has been compounded with unnecessary measures that burden businesses even further. Estimates suggest that the business rates paid by thousands of shops, pubs and restaurants will more than double next year as long-standing relief is tapered off. Altus Group said the cut from 75% to 40% next April will mean an average 140% rise in business rates bills for more than 250,000 high street premises in England alone. The British Institute of Innkeeping has suggested that one in four independent pubs are