Better Jobs and a Fair Deal at Work — House of Commons, 2021-05-12
Topic: Macroeconomics
Sarah Jane Olney (Liberal Democrats, Centre to centre-left): It is a pleasure to speak in this debate on the Queen’s Speech. The Government have had a great deal to say about levelling up, but there was very little in the Queen’s Speech to help our thousands of small businesses all over the country with the real help they need to recover from the pandemic. Our small businesses are the lifeblood of our communities, and the need for strong local communities has been highlighted as never before Small businesses and our town centre businesses have already been struggling with high business rates, outdated property leasing arrangements and increasing competition from digital services. Although the Government did a great deal to alleviate some of the problems the pandemic presented, it was unavoidable that many businesses, especially in our retail, hospitality and cultural sectors, should have lost a great deal of income over the past 13 months. Consequently, many small businesses have taken on a great deal of debt. The overall debt burden for businesses in this country is estimated to be more than £100 billion. The Federation of Small Businesses has said that 40% of its members describe that debt as "unmanageable". I am sure the Prime Minister has a great deal of sympathy for all those struggling with debt repayment, so it is extremely disappointing not to see more action from the Government to support these businesses with the debt burden they are struggling with. Additional support would save many jobs I welcome the Government’s announcement yesterday that they plan to continue to open up the economy according to the dates in the road map, and I very much look forward to the next step on Monday. It will deliver a huge boost to businesses up and down the country, and I very much hope we will see a dramatic increase in economic activity in the second half of the year to help struggling sectors recover some of their covid losses But beyond the post-covid bounceback, what are the Government’s long-term plans for economic growth? Only sustained growth can help businesses to pay down their debts and deliver secure, skilled, long-term employment. The only thing we have heard about so far is freeports, which are set to be delivered in hand-picked parts of the country and cannot deliver jobs and growth everywhere. They rely on special customs status and are appropriate for only limited forms of economic activity. Evidence shows that their effect is to divert economic activity from elsewhere, rather than generating new activity of their own The Government do not appear to have any further ideas. The Liberal Democrats want to see investment in green growth and real action on the fight against climate change, in the form of upgrading our homes, investing in renewable energy infrastructure and reducing carbon emissions from transport. There was nothing in the Queen’s Speech to indicate how the Government plan to progress towards their own goal of net zero by 2050—that is an alarming omission, given how urgent the need for action is. In particular, we need to see the Government’s plans for replacing the green homes grant, to encourage householders to invest in zero-carbon homes, which will encourage the construction sector to invest in the skills, apprenticeships and workforce to deliver this. That work needs to start now The most recent figures from the Official for National Statistics show that our trade with the EU has recovered since the low level of exports recorded in January, but exports to the EU in March 2021 were still 20% below the March 2019 levels. The Government need to abandon their flag waving, look seriously at the obstacles that the trade and co-operation agreement presents to trade, and make a start on addressing them if they want this country to recover economically.