Commons Sense

House of Commons · Ministers' Questions

Employment Costs

Thursday 12 June 2025 · 2 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

  • Scotbeef announced the closure of its abattoir in Inverurie, resulting in 90 job losses.
  • The Minister mentioned that 667,000 more people are in work compared to the same period last year.
  • Jerome Mayhew, a former entrepreneur, expressed concerns that the Employment Rights Bill will reduce employment.

Topics (select to filter)

Questions & Answers

Q1 Harriet Cross Con Gordon and Buchan
Taxation Employment Agriculture & Rural Affairs
Context

Scotbeef announced the closure of its abattoir in Inverurie, leading to 90 job losses. The Office for Budget Responsibility showed that 109,000 jobs were lost in May, which is the highest monthly figure in five years.

Question

Yesterday, Scotbeef announced the closure of its abattoir in Inverurie in my Gordon and Buchan constituency, with 90 job losses and another blow to agriculture in north-east Scotland. It blamed rising costs. In April the increase to national insurance contributions came in—a huge tax rise on businesses—and the Office for Budget Responsibility has shown that 109,000 jobs were lost in May, which was the highest monthly figure in five years. It cannot be a coincidence that that happened the month after the NICs increase. How is the Minister’s Department supporting businesses and jobs in sectors such as agriculture, which are having to deal with huge cost increases because of his Government’s decisions?

Answer from The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)

I am very sorry to hear the news from the hon. Lady’s constituency. It is the case that 667,000 more people are in work compared with this time last year, and 300,000 fewer people are economically inactive. I am rather surprised that she mentions the national insurance hike, because the Leader of the Opposition was on the radio this morning and was repeatedly asked to confirm whether that hike would be reversed. She failed to do so, and it seems to me that the Opposition are in opposition to themselves.

Partly answered

Not addressed: Job losses due to national insurance hikes and support for affected businesses

How: Redirecting Criticism, Challenging Opposition

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Q2 Jerome Mayhew Con Broadland and Fakenham
Employment
Context

The Employment Rights Bill is expected to increase costs for businesses. Previous questions have asked about business support.

Question

The Minister seems to be in denial. As a former entrepreneur, I visit lots of businesses in my constituency, and I talk to them about their fears. Not a single one has anything positive to say about the Employment Rights Bill—indeed, they are concerned that it will reduce employment, not increase it, and it has been estimated that it will increase costs by more than £5 billion. The Minister has been asked this before, so he has had a lot of time to think about it: can he name a single business that publicly supports the Employment Rights Bill?

Answer from The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)

I can certainly name a number. I also refer the hon. Member to Hansard on Tuesday 11 March, column 953, where I named a small business. A number of other businesses have been in support: Centrica, Co-op, Richer Sounds, Nationwide, Adept, One+All, Pedal Me, Inkwell—there are many businesses that we talk to on a regular basis and that understand that treating staff well is a good thing for those businesses. It is a pro-growth, pro-worker measure.

Answered
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