Labour giving businesses ‘a good kicking’ with its tax policies – Tories

UK ministers are punching business in the face and then giving them “a good kicking”, the Conservatives have claimed, as they called for business rates to be abolished.

Shadow culture secretary Nigel Huddleston said the UK Government has “an appalling attitude” towards businesses and its policies are making seasonal and part-time work more difficult for the hospitality industry.

Business minister Blair McDougall hit back at Mr Huddleston, telling the Commons he makes Ebenezer Scrooge sound “positively festive”.

“We recognise it has been a hard few years for business. Despite the appalling economic legacy that his party left us, in this festive period, we can look forward to the new year with a sense of optimism,” he added.

In the Budget, Chancellor Rachel Reeves confirmed that a new business rates system will be introduced from the next financial year.

This will see rates multipliers lowered for retail, hospitality and leisure firms – funded by higher rates on larger commercial properties, including warehouses.

The Treasury said the move was designed to “rebalance the business rates system” and help smaller firms by putting more of the tax burden onto bigger operators.

However, industry bosses are warning firms will end up paying more despite business rates being lowered.

Analysis by the British Beer and Pub Association (BBPA) estimates that higher bills will cost the industry an extra £150 million – the equivalent to 12,500 jobs.

Speaking during an opposition day debate on seasonal work, Mr Huddleston said: “In the Budget, the Chancellor had the brass neck to say she was helping the hospitality industry with business rates.

“In reality, hotels, pubs, theme parks, restaurants, cafes, all seeing an increase.”

He added: “The national insurance increases in last year’s budget alone cost the hospitality industry over a billion pounds.

“The business rate increases that they’re facing now make matters even worse.

“This isn’t so much giving with one hand and taking with the other. It’s giving with one hand, then punching them in the face and then giving them a good kicking when they’re down on the ground, as well.

“That is an appalling attitude to take towards business, but that is this Government’s attitude.”

Mr Huddleston argued the abolition of business rates would improve “the vibrancy of our high streets”.

Responding, Mr McDougall said: “The tone of that speech from (Mr Huddleston) made Ebenezer Scrooge sound positively festive.”

Mr McDougall went on to accuse Mr Huddleston of being “even less charitable” than Charles Dickens’ character because of his party’s criticism of the Employment Rights Bill.

He said: “Scrooge famously wanted, indeed, insisted on his workers having regular hours over Christmas, (Mr Huddleston) does not seem to want that.

“Even Scrooge, by the end of the story, gave Bob Cratchit a pay rise so that his family could enjoy Christmas, and here he is arguing against it.”

Mr McDougall said “unlike Ebenezer Scrooge, (Mr Huddleston) has not repented” for his support of Liz Truss’s mini-budget.

“He has not seen the error of his ways and the impact of unfunded commitments. Instead, he’s at it again, calling for tax cuts without any idea whatsoever of how to pay for them,” he said.