11 February 2015
Alok Sharma praises job creation by businesses in Reading West

Alok Sharma praises the success of the economy in Reading and the creation of new jobs by local businesses, he particularly welcomes employers who have provided jobs for the long-term unemployed.

Alok Sharma (Reading West) (Con): Back in 2011, I had discussions with Tesco about its plans to set up a major distribution centre in my constituency. They were very successful and a couple of years later we had a new distribution centre employing more than 1,000 people. As part of its commitment to helping the long-term unemployed, Tesco ring-fenced 85 of those new jobs for those who had been long-term unemployed; about 18 months ago I went to a graduation ceremony for those who had been on the scheme. They had not only gained new skills in the workplace but received training at a local college. The age range of those graduating was from the mid-20s to the mid-50s, and the event was one of the most emotional and uplifting that I have been to during my five years as an MP. The sheer sense of achievement and pride for those graduating was palpable, and it was not because somebody had just come along and handed them a job but because they had each worked hard, had achieved and had won a job on their own merits. There are many examples of employers across my constituency who have created jobs over the past five years.

A number of my colleagues have talked about apprenticeships. They have been a huge success in Reading West in the past five years. We have had thousands of new starts. All sorts and sizes of businesses, everyone from Sisco and Microsoft to Chiltern Training and Pertemps—a huge range of organisations—have been taking advantage of help from the Government to start apprenticeships,. We talk about real jobs—these organisations have been creating real opportunities for young people. The end result of all that job creation and help for young people is a massive 60% fall in unemployment in my constituency since May 2010. Overall, unemployment is now below 2%. The right hon. Member for East Ham (Stephen Timms) talked about youth unemployment. That has fallen from 7.8% in May 2010 to 1.7% today.

Those businesses did not need any kind of compulsory guarantee from Government; they got on and created jobs. The reason why businesses have invested, putting money into research and development and infrastructure, is that they have regained the one absolutely precious commodity that one needs to succeed in business: confidence. Businesses have confidence in the British economy and they have confidence in the future. Above all, they have confidence in a Government who have cut corporation tax, national insurance and red tape, and increased the investment allowance and extended small business rate relief. All these are policies designed to create jobs. It is not Governments who create jobs; it is companies in the private sector that create jobs.

The right hon. Member for East Ham, who is no longer in his place, was not able to say what percentage of jobs under the compulsory job guarantee would come from the private sector. I can tell him that, according to a BBC report in March 2014, the Labour party was talking about 80% of jobs coming from the private sector. In the past few weeks, it has been bashing businesses and demonising wealth creators. Labour has made it clear that it will put up taxes and have more red tape. That will end up driving businesses away from our shores. With all due respect, I have to say that I do not think the Leader of the Opposition, or indeed very many Labour Members, understand business. That is because they have never worked in business.

Gemma Doyle (West Dunbartonshire) (Lab/Co-op): There are a number of Labour Members who have worked in business, including me. What the hon. Gentleman said was ridiculous, and perhaps he will withdraw it.

Mr Deputy Speaker (Mr Lindsay Hoyle): Order. May I just say that interventions are going to take time from Members who are going to speak later? That is the only worry I have, but by all means continue.

Alok Sharma: I thank the hon. Lady for intervening. I am delighted she has some experience of business. The same is not so for the Leader of the Opposition, is it?

When it comes to businesses, I think the Leader of the Opposition has actually decided—this business bashing is not an accident—that bashing businesses will win votes. He thinks that bashing big businesses will somehow compel small businesses to move towards him. I have to say that that is utter fantasy. In my constituency, many people are employed by small businesses and they will not like what the Labour party has been saying. Small businesses want to grow into large businesses. They have ambition and aspiration, but that is not what we have been hearing from the Opposition.

The Government’s policies have created the real jobs, the real prospects and the real skills that young people and those who have been long-tem unemployed need. That is what has been happening in the past five years. I will not support the Opposition motion. It is unfunded, it is unclear and it has no support in the business community. Unless the shadow Minister can tell me otherwise, I do not think there are huge numbers of businesses crying out for the compulsory jobs guarantee.

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