South West Devon MP challenges Labour over future of jobs for young people
Rebecca Smith MP has spoken out in Parliament about the pressures facing small businesses, citing examples of employers cutting back on opportunities for younger workers amid rising costs
South West Devon MP Rebecca Smith has criticised the Government over rising employment costs, warning that local businesses are being forced to cut back on apprenticeships and jobs for young people.
Speaking during a Conservative Opposition Day debate in Parliament on Wednesday (November 11), Ms Smith supported a motion calling for employers' National Insurance contributions to be halved for workers under the age of 25.
The proposal was voted down by Labour MPs.
During the debate, Ms Smith also challenged comments by Labour minister Emma Reynolds, who suggested that employers were not working people because they were companies.
Responding to the comments, Ms Smith said: “The employers I know work incredibly hard. They are the ones opening up before dawn and locking up long after everyone else has gone home.
“They are the ones managing staff, cashflow and contracts. They bear the ultimate responsibility when things go wrong.”
Rebecca also highlighted the pressures facing small and medium-sized businesses in South West Devon, which she said numbered around 3,700.
Among those affected is Avocado Construction, which has reportedly stopped taking on apprentices and ended a scheme with Plymouth homelessness charity Shekinah.
The scheme had helped people recovering from addiction to return to employment.
Ms Smith also referred to a local café owner who had reduced the number of younger employees to protect the jobs of existing staff with mortgages and rent to pay.
She blamed higher employer National Insurance contributions and increases in the minimum wage for adding to the financial pressures on businesses.
“Labour’s jobs tax is shooting the Government in the foot,” she said.
“Time and time again, local businesses tell me they can no longer afford to take on apprentices.
"The double whammy of higher employer National Insurance Contributions, plus the increased minimum wage, has simply become too much to bear.”
Ms Smith said the Government should be making it easier for businesses to recruit people, particularly those looking to enter the workforce.
“If Labour are serious about helping people off welfare, they should stop making it harder to hire them,” she said.
“Labour’s answer is to punish employers. Ours is to create more opportunities, more apprenticeships, and get more people into work.”
The Opposition Day motion was defeated after Labour MPs voted against it.