Finance (No. 2) Bill
My hon. Friend is right. I was out there this morning speaking to farmers, including a group up from Newbury, who have taken the trouble to come here to make exactly that case powerfully to us on the day of this debate.
5,731 spoken contributions under 12 words (interjections such as “Will the hon. Member give way?”) are hidden. Show them
- Hansard source
- Hansard source
Finance (No. 2) Bill
I notice that my right hon. Friend is being restrained in his use of language, given the severity of the matters we are discussing. He is absolutely right. Business property relief is being changed in broadly the same way as agricultural property relief in this Bill. That will have a devastating and similar consequence for family businesses across the UK, and I have been up and down the country to meet many of them. One of the foremost in campaigning has been Steve Rigby of the Rigby Group. He is the head of Family Business UK, and he put it perfectly when he said that family businesses are spending too much time protecting their legacy and succession, not on promoting growth. That is the whole point. If this Government want growth, they will have to do things that get businesses to think about growth, rather than having to worry about being broken up because of onerous tax measures.
- Hansard source
Finance (No. 2) Bill
My right hon. Friend is absolutely right. It shows a complete lack of understanding of business, and it reflects the lack of true business experience on the Government Front Bench. It also goes right to the core of the difference in principles and beliefs between the two principal parties in this Chamber. We on the Opposition Benches believe that if someone works hard, saves hard and has something left at the end of their life, they should be allowed—because they love those who they wish to look after in their absence—to pass on that inheritance without the taxman taking a huge, disproportionate amount of what they have accumulated. All the Labour party believes in is mounding up ever more debt in a statist world in which that debt is to be passed on to future generations to be paid back. We believe in supporting the little platoon, as Burke put it—the families that together form a mighty army. We believe in personal responsibility and for that to be rewarded.
- Hansard source
Finance (No. 2) Bill
I will give way to the hon. Gentleman and then I will come to the hon. Lady.
- Hansard source
Finance (No. 2) Bill
As I have to say so often following his interventions, the hon. Gentleman is absolutely right. There is a huge difference between the position of a dynamic, growing organism of a company and the other situation that he has described. Loading up these taxes on the death of the principal owner or one of the significant owners of a business means loading it up with uncertainty, and quite conceivably the business must be broken up as a consequence.
- Hansard source
Finance (No. 2) Bill
It is interesting that the hon. Lady should raise the issue of inflation. Inflation is currently at about twice the target of 2%, and it was bang on target on the day of the general election, at 2%, because of the action that we took, alongside the Bank of England. The International Monetary Fund is forecasting that inflation in our country will be the highest in the G7 this year, and the highest in the G7 next year. If we ask why that has happened, the answer is relatively simple. If national insurance increases are imposed on employers, they pass on some of those additional costs by way of higher prices, and that is inflationary. If vast amounts of money are borrowed, and, notwithstanding what the Minister had to say earlier, vast amounts of money are spent, too—about half a trillion pounds more than was the case under the plans that Labour inherited—that also stokes inflation. Those on the Government Front Bench may trumpet the fact that interest rates have come down five times, but if they had not mismanaged the economy, rates would have come down an awful lot faster. Interest rates are higher, and for longer, because we have sticky inflation, which is due to the choices made by this Government.
- Hansard source
Finance (No. 2) Bill
My hon. Friend is right to suggest that we have become an economy that has closed the door on international investment. In fact, the door has been blown wide open by those fleeing to go to the United Arab Emirates, Milan and other places around the world to escape the high-tax jurisdiction that we have become, and it comes with great cost. Given the 16,000 high net worth individuals who have fled under this Government, about a third of a million to half a million people on average earnings would probably be needed to cover the tax that has just walked out of the door. I can also tell the hon. Member for Angus and Perthshire Glens (Dave Doogan) and others that we will reverse the APR and BPR changes if we form the next Government. I will now make swift progress. Let me just say that the wrong choices have been made. Tax should not be going up and spending should not be going up in this way, and I do not even believe that the Chancellor’s heart is in the benefit changes that have occurred, including the two-child benefit cap change. If it were, why was the Whip removed from several Labour Members? The reality is that the Prime Minister and the Chancellor are lashed to the same mast. This is all about their survival. They lost control of their own Back Benchers. Let me go back to Shakespeare, and “The Tempest”. The storm has no respect for rank, so they pitch and roll solely at the command of those behind them. The great man also wrote: “All the world’s a stage…And one man in his time plays many parts”. However, this Chancellor has played but one part, that of recklessness. At heart, she has taxed that which is good, and in this Bill she has incentivised that which is not. By so doing, with this Bill she will diminish us all.
- Hansard source
Mandatory Mediation
5. Whether he has made an assessment of the potential merits of the further use of mandatory mediation in civil law.
- Hansard source
Mandatory Mediation
Time pressure is one of the best routes to encourage alternative dispute resolution, as the Minister knows, but in the commercial court in 2024 the median time to judgment was 786 days. The UK law sector is up against huge pressures from Singapore and the middle east, which are offering six months to judgment and six months for appeal. May I urge Ministers to look at the competitive challenges facing UK law against such tough international competition?
- Hansard source
Chagossians: Trust Fund and Resettlement
Is, in the Government’s opinion, Mauritius a free society, and what is the Government’s assessment of the nature of its relationship with communist China?
- Hansard source
Africa: New Approach
Following on directly from that, what can the Minister tell us about any military advice or assistance that our experts in counter-insurgency are giving to the Governments of friendly Commonwealth countries like Nigeria that face vicious jihadist extremist attack from organisations such as Boko Haram?
- Hansard source
Electoral Resilience
I hope that the Rycroft review will take account of the fact that the giving of money is by no means the worst aspect, or the main aspect, of treacherous behaviour, because very often these people do what they do out of a genuine belief in a potential enemy’s point of view. It would be interesting to know whether the crime would have attracted such a large sentence as it did if, instead of just money being given, it had been a matter of clandestine contact because the person was willing to spout the Russian line anyway. Let us not be overconcerned with the giving of the bribe, which is often a bonus to people who want to betray us to a potential enemy in any case.
- Hansard source
Strategic Lawsuits against Public Participation
9. What steps his Department is taking to tackle the use of strategic lawsuits against public participation.
- Hansard source
Strategic Lawsuits against Public Participation
I welcome the Minister’s answer, but is she aware that in the space of one week the Solicitors Regulation Authority has lost two tribunal cases relating to SLAPPs? Do the Government consider the SRA fit for purpose in this area? Is further legislation not needed to prevent lawyers from pursuing abusive cases?
- Hansard source
Prisoner Early Release: Earned Progression
16. What estimate he has made of the number of prisoners eligible for early release under the earned progression model.
- Hansard source
Prisoner Early Release: Earned Progression
The salient difference between the Government and the people is that the public expect vile, vicious, violent people to be locked up, so that they can ruin no more lives, whereas the Government want to let them free. About two thirds of rapists and 83% of child sex offenders will be eligible for early release. Is it any wonder that the Domestic Abuse Commissioner and the Victims’ Commissioner have criticised these plans? Will the Government at least exclude those kinds of offenders before implementing this policy? Otherwise, they will wreak harm, hurt and hate on every part of our country.
- Hansard source
Finance (No. 2) Bill
Like me, the hon. Gentleman represents a constituency in the south-west where hospitality businesses of all sorts will be very heavily hit by this Budget. They have seen rate increases. They have seen increases in alcohol duty, increases in the minimum wage and national insurance increases. Some of them are literally going to be taxed out of existence. This Government say they support small businesses. That could not be further from the truth.
- Hansard source
Victim Support: Funding
Building on the question from the hon. Member for Macclesfield (Tim Roca), police and crime commissioners were able to act as a strong independent voice for commissioners. In what has been outlined so far, there is not really a voice for victims in local areas. What will the Secretary of State do to make sure that is remedied?
- Hansard source
Chagossians: Trust Fund and Resettlement
The Chagossians have been treated appallingly by successive Governments—we all accept that. To me, it is unconscionable that, for the first time since the first world war, a colonial people is being transferred from one colonial power to another 1,000 miles away with no control. I think there should be a referendum, but we are where we are. Does the Minister recognise that it would lighten the whole atmosphere if there was an absolute right of return for all Chagossians, with them not having to take Mauritian citizenship and being fully in control of their own trust fund? In other words, they have a right to self-determination like any other people on earth.
- Hansard source
Electoral Resilience
I am curious to know in what respect our existing laws were insufficient to deal with this appalling case. Will the Secretary of State confirm that the best way to reassure the public on electoral resilience is never again to delay local council or mayoral elections?
- Hansard source
Finance (No. 2) Bill
I am intervening on the hon. Gentleman because we both represent rural constituencies—he in Wales and me in Lincolnshire. Our constituencies are very different in their rural aspect, but both are affected equally badly by the family farm tax. Many of my farms may be larger than his, but their income is still quite marginal. So many of us representing rural areas cannot understand why the Government have not been prepared to compromise, listen to the NFU and, if necessary, take more resources from the big estates but preserve our family farms.
- Hansard source
Finance (No. 2) Bill
My hon. Friend was brought up in a notable local farming family in my constituency, and the reason why the House is listening to him is that he has been bred into farming and knows about farming. Would he like to say what, from his own family’s experience, this means for farmers in Lincolnshire? Some people say that Lincolnshire is full of large estates and all the rest of it. No, it is full of working farms, and he can speak with authority on this subject.
- Hansard source
Finance (No. 2) Bill
The Minister gave his estimate of the number of farms that would be affected by the new tax, which I am quite sure is an underestimate. Notwithstanding that, though, the chilling effect on agricultural investment has been felt across the entire sector as people seek to avoid their farm reaching the threshold for the new tax.
- Hansard source
Finance (No. 2) Bill
This attack on investment extends well beyond agriculture and family farms; it is an attack on every family undertaking and every family business in the land. It is bonkers.
- Hansard source
Chagossians: Trust Fund and Resettlement
It is striking that the Government, despite deriding 14 years of Conservative Government, want to follow the example of the previous Government on just this matter. May I just point out that the former Foreign Secretary, the noble Lord Cameron, decided that the negotiations were not in the national interest and not in the interests of the Chagossian people, and that they should be suspended? May I recommend that the Minister follows our example on that?
- Hansard source
Jury Trials Proposal: Impact
23. What assessment he has made of the potential impact of the proposal to restrict the right to a jury trial for certain offences on the rule of law.
- Hansard source
Jury Trials Proposal: Impact
When the Lord Chancellor made his statement on jury trials last week, he said that an impact assessment would be published with the legislation. Given how powerful a defender of jury trials he has been in the past, will he publish the evidence and the modelling that he has seen since coming to office that caused him to change his mind?
- Hansard source
Africa: New Approach
I absolve the Minister entirely from responsibility for this statement, as he is not the Africa Minister, but is the so-called new approach for Africa not rather like the old strategy—which was so well set out in the White Paper published by the former Prime Minister in November 2023, with its emphasis on investment—but with much less development investment and much less influence? Will the Minister confirm that bilateral programmes are being cut to ribbons across Africa? Does he realise that in major African institutions there is genuine amazement and astonishment that a Labour Government, for the first time ever in the Labour party’s history, have slashed development aid? Does he appreciate that as Britain and America are withdrawing from Africa, it is Russia and China that are taking our place?
- Hansard source
Electoral Resilience
As a former elections Minister, I welcome the Secretary of State’s statement. I wonder if he would reflect on two points, together with his hon. Friend the Security Minister, with regard to the defending democracy taskforce. First, the Electoral Commission has plenty of influence, but it possibly needs more financial resource and sharper teeth that it can deploy more quickly. Would he reflect on that and ask Sir Philip to advise on that point? Secondly, the response of our police across the country is, at best, patchy when it comes to their interpretation of their key and pivotal role in defending democracy and ensuring that it works fairly and well for all of us. Through the taskforce, can he ensure that there is a more uniform approach from the police on this issue?
- Hansard source
Jury Trials Proposal: Impact
Under the Justice Secretary’s plans to slash jury trials, he is giving magistrates more serious cases. However, he also plans to scrap the automatic right to appeal—a vital safety valve in courtrooms where justice is delivered at pace by volunteers. Last year, 5,000 cases from magistrates courts were appealed, of which more than 40% were upheld. Given that very high rate of successful appeals, will the Secretary of State be honest with the public and concede that curtailing appeals will unquestionably lead to miscarriages of justice?
- Hansard source
Jury Trials Proposal: Impact
If the Secretary of State maintains that this change will not lead to miscarriages of justice, he must be expecting the same number of cases to be appealed. In which case, there is no point doing it in the first place. The truth, deep down, is that the Government are willing to tolerate some miscarriages of justice to save a paltry sum of money, yet all the while the solution is staring us in the face. Since the Justice Secretary announced his plan on 2 December, 640 sitting days have been missed. It is the end of term. The Justice Secretary’s report card is marked “improvement required”. Will he reflect over Christmas and make scrapping his plan to slash jury trials a new year’s resolution that we can all support?
- Hansard source
Topical Questions
I commend the Justice Secretary on the Government’s decision to extend whole-life orders to those who kill prison officers. Two weeks ago, I had the privilege of meeting the parents of Lenny Scott when they came to Parliament. It is absolutely right that we extend whole-life orders to cases in which brave prison officers are killed, either in the course of their duties, or in the exceptional circumstances that faced Lenny Scott after he had left the service. The Justice Secretary can be assured of the support of Conservative Members. Two weeks ago, the Justice Secretary appeared on Sky News and revealed that 12 more prisoners had been mistakenly released, and that two remained on the run. I have two very simple questions: since then, how many prisoners have been mistakenly released, and how many more remain on the run?
- Hansard source
Topical Questions
In all the years that I have been in the House, I have never known a Secretary of State fail to answer the first question from his opposite number, but that says a lot about the man. The Justice Secretary was fine answering questions in the media two weeks ago, when the police investigation was under way, but now he says—or his Minister says, in his stead—that it would be inappropriate to comment in the House of Commons. What utter nonsense! Does he seriously think anyone is buying that excuse? He either does not know the details, or he is covering up his failure, both of which are a dereliction of duty. How on earth can the public assist in the manhunts that are presumably under way across our country and clear up his mess if he will not publish the names or mugshots of the prisoners mistakenly released? Once again, he is endangering the British public.
- Hansard source
Quarries: Planning Policy
It is a pleasure to serve under your chairmanship, Dr Murrison. When I first supported my hon. Friend the Member for South Leicestershire (Alberto Costa) in applying for this debate, there was an ongoing planning application in Silsden in my constituency, to reopen a local quarry at Horn Crag. I am pleased to say that since then the application has been rejected—not only at the initial stage, but on appeal. While Horn Crag quarry may no longer be a current threat to Silsden, the whole experience throws up many issues relating to quarries and our wider planning system. I met a number of Silsden residents, my neighbours on the ground, who had fought tooth and nail to have their voices heard by Bradford council and the Planning Inspectorate. It was only after considerable effort on their part that their concerns—about the environment, the impact on nature, air quality, complex site operations, ecology, drainage, potential water pollution challenges and congestion through Silsden and Addingham—were heeded. It is easy to understand their passion and anger when we consider the broader planning context in Silsden. The town has been inundated with hundreds of new homes in just the last 10 years, and many of those strongly opposed proposals went through without Bradford council even batting an eye. Many were expecting the Horn Crag quarry application to be simply another case of the council ignoring local wishes. People might accuse those Silsden residents of nimbyism, but when the Isherwood family made a proposal for a new farm shop on the outskirts of the town, which was well supported by many local people, it was rejected by the same planning authority that had no issue with approving a huge number of new houses across Silsden. While stopping Horn Crag quarry was a definite win for those residents, it will not be enough to restore local people’s confidence in our planning system. That is why I think it is really important that we continue to have these debates in the Houses of Parliament, to explore how the planning system for quarries can better reflect local views and provide assurance to local planners that schemes are suitable. It is clear, from the many contributions that we have had today, that the system is currently not fit for purpose. It is also clear that many quarry applications are not sufficiently considering the impacts on air quality, water quality, noise and vibration. What has not yet been mentioned in the debate is the possibility of requiring a bond when quarry developers put forward an application. That money, which will have been negotiated by a local authority in putting the bond in place, will then be able to provide financial reassurance that, if a quarry operator goes bust, restoration and aftercare can still take place. However, when bonds are being negotiated, they are not being negotiated robustly enough to deal with current economic pressures and inflationary challenges. When things go wrong, the bond should be there to provide reassurance. It is frustrating that, when landfill sites are not considered, bonds are not put in place at the start, and I would like the system to reflect that. I am concerned that the legislation currently going through the House is not dealing with the challenges. The Planning and Infrastructure Bill that has been put forward by this Labour Government, alongside the English Devolution and Community Empowerment Bill, is actually having negative implications on environmental mitigation, as well as the ability of local people to have their say as part of the planning application. No one wants to say no to any development, and of course quarries are needed, but we must ensure that we have robust ways to manage their undesirable consequences, and that local people are brought along as part of that process. At the moment, I feel that they are not. I am just glad that, in the case of Silsden, common sense prevailed.
- Hansard source
Quarries: Planning Policy
Great, that is very kind of the Minister. Seven days ago, the Campaign to Protect Rural England commented that the Planning and Infrastructure Bill, which is working its way through the House, will have a detrimental impact on environmental regulation and reduce the influence of local people and their ability to have their views heard when quarry applications are put forward. I wonder whether the Minister might like to comment on that.
- Hansard source
Finance (No. 2) Bill
I am not quite sure whether the Minister believes what he is reading, because UKHospitality has already done the sums on the impact that this Budget is having on many hard-working hospitality businesses across Keighley and Ilkley. Indeed, it has calculated that over the next three years, hospitality businesses in my constituency will have to pay on average an additional £13,690 per annum. Can the Minister say what the Budget will mean for the growth of hard-working hospitality businesses in my constituency?
- Hansard source
Finance (No. 2) Bill
Business property relief impacts many family businesses across the country. What does the Minister say to Fibreline in my constituency, which has worked out that its BPR liability is about £850,000? The company employs 250 people in Keighley whose jobs are potentially at risk as a result of the business not being able to mitigate an inheritance tax liability that this Government are imposing on it.
- Hansard source
Finance (No. 2) Bill
This comes down to choices. The tax revenue that will be raised from the changes to APR and BPR is about £500 million. On the other hand, the Government are saying, “We are going to spend £1.8 billion on a roll-out of mandatory digital ID, and £47 billion on the Chagos deal.” This is about choices and how the Government not only raise revenue, but spend it.
- Hansard source
Finance (No. 2) Bill
I am not quite sure whether the hon. Member for Erewash (Adam Thompson) has read the Budget. He said that those with the broadest shoulders must bear the pain, but those on the basic rate of income tax will be paying an additional £220 a year in income tax as a result of this Budget. I am not quite sure that those with the broadest shoulders will be paying that level of tax. Growth is down, inflation is up, taxes are up, unemployment is up, borrowing is up and interest debt is up. This Budget, coupled with the last one, is £66 billion of tax raising. As we speak, there are farmers outside this Chamber once again, and I know that they are in the Public Gallery as well. Why? Because of the changes that this Government continue to press ahead with through the family farm tax and the family business tax.
- Hansard source
Finance (No. 2) Bill
I absolutely agree. This Budget has an impact not only on our farming community, but on the wider agricultural supply chain and the many businesses that support our farming community. Why? Because bringing in a threshold of £1 million will impact nearly every family farming business. Let us look at the figures. The average size of a farming business in England is about 200 acres. When valuing farmland, there may be a farmhouse, a cottage or two, livestock, agricultural machinery, growing crops and crops in store, which will put it well above the £1 million threshold, thereby exposing the farming business to an IHT liability that kicks in at 20% of the value over and above £1 million. The Government will say that they have permitted some allowances, but that does not take into account the value of those businesses. This is going to have a hugely detrimental impact not only on those family businesses, but on the wider agricultural supply chain.