Sarah Olney

“I am terribly sorry, Madam Deputy Speaker, but I did not hear all the hon. Gentleman’s intervention. He said something about unemployment in 2012. That was, of course, very soon after the global banking crash, which had a huge impact. The state of our economy requires bold action: addressing the workforce skills crisis, reversing the national insurance jobs tax, speeding up delivery of the industrial strategy, and, most important, negotiating a new growth and defence partnership with the European Union, including joining the single market and forming a new customs union. More than 1 million young people in this country are currently not in education, employment or training, the highest level in over a decade. That is a very worrying statistic. The Milburn review has warned that the UK is at risk of experiencing a “lost generation” of young people owing to rising ill health, growing skills gaps, a dysfunctional housing market, and many other structural factors. We are seeing not a lack of ambition among young people, but an institutional failure on the part of both the current Government and the last one. Ministers should be seeking urgently to ensure that young people have access to the skills, training and work experience that are necessary to begin their careers and participate in the workforce, but they cannot gain that experience if businesses simply cannot afford to offer new opportunities because they are struggling to stay afloat. The cost of employment has risen significantly during Labour’s time in office, and more than 110,000 jobs have been lost in the hospitality sector alone since the rise in national insurance contributions. If businesses are not able to grow, it will not be just summer jobs that suffer; employment opportunities across the board will suffer, and of course that explains why the unemployment rate has climbed from 4.3% at the time of the 2024 Budget to 4.9% now. Our SMEs face huge challenges, and many are already struggling to absorb rising costs. Unless more is done to support them, vital entry-level jobs and essential contributions to the culture and character of our local communities will risk being lost. As for issues affecting the workforce more broadly, the Liberal Democrats have welcomed the industrial strategy, alongside a funding boost for skills and training, but that progress stops well short of the fundamental reform that we need to see if we are to address the workforce shortages that many industries are facing. British businesses must be able to hire the people they need, with the skills that they need, but they must also have scope to employ less experienced workers who are just starting to climb the career ladder. Opportunities for young people are shrinking, and any business will tell us that the apprenticeship levy is not fit for purpose. Firms cannot obtain the funding that they need to train staff, and hundreds of millions of pounds of funding go unspent. The Liberal Democrats have long called for proper reform of the apprenticeship system to give businesses real flexibility over how they spend their money to train their staff. The motion also calls for the abolition of business rates, and the Liberal Democrats agree that we need to see a complete overhaul of this unfair and damaging system. However, it was the last Conservative Government who failed to deliver the fundamental review of the business rates system that they promised in their 2019 manifesto. Perhaps things would have been different today if they had not simply kicked the can down the road. With the hospitality sector struggling to employ new workers, damage is being done to the prospects of our young people, who are now facing a soaring youth unemployment rate of 16.2%. It is self-evident that that trend is damaging to our economy as a whole. At the heart of this debate are people who are finding it incredibly difficult to obtain a job and support themselves, their partners, their children and their families—to pay rent, to pay their bills, to pay for groceries, to pay for essentials. That is what must not get lost in the debate. The motion purports to examine the factors limiting opportunities for young people, but, perhaps unsurprisingly, there is a glaring omission of any reference to the damage caused by the last Government’s failed Brexit deal. The appalling agreement negotiated by the Conservative party has been a complete disaster for our country, and particularly for small businesses, which are held back by reams of red tape and new barriers to trade. An astonishing 16,000 firms have stopped all exports to the EU as a result. While the Liberal Democrats welcome the steps—even if small and hesitant—that the Government are taking to improve our relationship with the EU, I urge the Minister to recognise that this should be only the start of moves towards a much deeper trading relationship, which should include joining the single market and forming a new customs union. That would be truly transformational for our economy, and for our young people’s employment prospects. At the very least, the Government should be making far more progress to secure a youth mobility scheme with the EU. If that were in place, there would have been exponentially more work opportunities available to young British people this summer. Will the Minister set out a timeline for the introduction of a youth experience scheme? That would be beneficial to our whole economy, and could ease some of the burdens that our hospitality sector faces.”