Conservative leadership candidate Kemi Badenoch has sparked debate after suggesting that the national minimum wage is harming small businesses, citing an example from her own constituency.
Speaking at the Conservative Party conference in Birmingham on Monday, Badenoch claimed that excessive tax, regulation, and wage requirements are overburdening businesses. She referenced a cafe in North West Essex that had recently closed down, blaming the owner’s inability to pay the minimum wage and offer statutory maternity leave.
“There’s a cafe in my constituency that closed down because the owner said, ‘I can’t afford the wages anymore. I can’t afford minimum wage. I can’t afford for my staff to go on maternity leave,'” Badenoch said, highlighting the pressures faced by small businesses under current regulations.
The former trade secretary argued that policies such as the national minimum wage and statutory maternity leave were discouraging entrepreneurship. “We are overburdening businesses with regulation and tax,” she told conference attendees. “People aren’t starting businesses anymore because they’re too scared.”
The comment has sparked debate
The current national living wage stands at £11.44 per hour for workers aged 21 and over, while younger employees earn lower rates. It is illegal for employers to pay less than these rates, with penalties for non-compliance.
Badenoch’s remarks come amid an ongoing leadership race within the Conservative Party. The candidate has been vocal in her criticism of what she sees as excessive regulation. Over the weekend, she told Times Radio that statutory maternity pay has “gone too far” and is contributing to excessive red tape for businesses.
“We’re taking from one group of people and giving to another,” she said, suggesting that the current system is “excessive.”
Her comments have drawn criticism from rivals, including fellow leadership contender Tom Tugendhat, who expressed support for “strong maternity and paternity pay.” Despite the backlash, Badenoch defended her position, comparing her stance to the misinterpretation of Margaret Thatcher’s famous statement that there is “no such thing as society.”
“When you are a Conservative leader, your opponents will twist your words,” she said, standing by her comments.
As the leadership contest heats up, Badenoch’s views on economic policy continue to fuel debate within the party and beyond.
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.
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