Commons Sense

House of Commons · Ministers' Questions

Business Confidence

Thursday 12 December 2024 · 4 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 1 Not answered 0

Key points

  • Business leaders are pausing recruitment and freezing growth plans after the Budget.
  • The Minister will work with the Treasury to resolve issues and protect businesses from unexpected bills.
  • The Secretary of State defends the Government's approach, contrasting it with the previous government's handling of Brexit and tax policies.

Topics (select to filter)

Questions & Answers

Q1 Neil Shastri-Hurst Con Solihull West and Shirley
Economy Business & Trade
Context

Business leaders in Solihull West and Shirley are concerned about the impact of recent decisions on taxation and the Employment Rights Bill.

Question

After the Budget, I spoke with many business leaders who told me they are pausing recruitment and freezing growth plans. What does the Secretary of State say to businesses that no longer have confidence in the Government?

Answer from Jonathan Reynolds

The Conservative party made promises without a plan, while we fix foundations and improve the business environment through political stability, openness to the EU, and willingness to use our mandate.

Partly answered

Not addressed: Did not directly address what message will be given to businesses feeling abandoned by government policies.

How: Changing Subject

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Q2 Neil Shastri-Hurst Con Solihull West and Shirley
Taxation Business & Trade
Context

Companies in the west midlands are affected by retrospective charging of steel safeguarding duties, imposed during the chaotic Brexit transition period.

Question

Will the Minister work with the Treasury to resolve the issue and ensure that businesses are protected from hefty bills they should not have been sent?

Answer from Jonathan Reynolds

The duties relate to taxation during a period of political uncertainty. We will get her the meeting she needs and ensure that she gets answers for her constituents.

Answered
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Q3 Sarah Coombes Lab West Bromwich
Economy Brexit Business & Trade
Context

The Bank of England's survey indicates that many employers expect lower profit margins, higher prices, reduced employment, and lower wages due to the Budget.

Question

Will the Secretary of State show contrition for low business confidence, admit errors, and start standing up for business rather than Treasury?

Answer from Jonathan Reynolds

The Government are addressing issues, unlike the previous government which mishandled Brexit and increased corporation tax. We engage with reality and get on with the job.

Not addressed: Did not address showing contrition for low business confidence.

How: Changing Subject

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Q4 Greg Smith Con Mid Buckinghamshire
Employment
Context

Evidence from the Employment Rights Bill Committee indicates a reduced hiring appetite due to proposed legislation.

Question

If business confidence is low, employment goes down. Is it extreme for this Labour Government to legislate for that outcome?

Answer from Jonathan Reynolds

The majority of employers already operate at a higher standard than proposed in the bill. The reforms will benefit vulnerable and low-paid members of society.

Not addressed: Did not address whether it is extreme to legislate for lower employment due to the Employment Rights Bill.

How: Changing Subject

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