Hospitality Sector
Will the hon. Lady give way?
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Hospitality Sector
It was a great moment when my daughter pulled a pint for me as part of her duties as a barmaid in her first job as she worked her way through university. Although that job put vital cash in her pocket, it also gave her people skills and proof on her CV that she was reliable and trustworthy with cash valuable stock. Her work today is far removed from that bar, but the foundations of her career were laid there. Yet across Dumfries and Galloway, hospitality businesses tell me that they are pausing giving youngsters like my daughter that all-important first job. The increase in employer’s national insurance contributions to 15%, and the lowering to £5,000 of the secondary threshold, are Labour’s dreaded £900-a-head black spot curse on bright youngsters ready for the world of work. In Scotland, matters are made worse by the anti-business SNP, which is not passing on moneys intended for business rate relief, and whose multiple unit pricing alcohol regime makes Scotch whisky more expensive in the land of its birth than in many other places. Shrouded in pious health messaging, MUP has had little discernible effect on problem drinking and seems more like the SNP fun police given free rein. Spirits prices are high; business spirits are low. No doubt the wealth-finder general, the new Chief Secretary to the Prime Minister—tough on growth, tough on the causes of growth—will seek new ways to squeeze hospitality. Knowledge is knowing that the tomato is technically a fruit; wisdom is being wise enough not to put a tomato in the fruit salad. The Pensions Minister is, improbably, holding the pen on the nightmare-before-Christmas Budget. He has a lot of knowledge about taxes, but has he the wisdom not to deploy them in the growth basket? Hospitality is a canary in the economic coalmine. The fact that pubs are closing and restaurants open only a couple of days a week at best is a leitmotif for this anti-business Government. They think that business is a dripping roast to be devoured to fund ruinous policies such as the Chagos surrender deal. Terrifyingly, hospitality is supping in the last chance saloon, but surely it is last orders for this maladroit Labour Government? Haven’t they got three homes to go to?
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Hospitality Sector
My hon. Friend referred to the Minister’s representations to the Chancellor, but I think the Minister said he was not going to make any representations to the Chancellor.
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Property Taxes
The hon. Gentleman says that he cannot speculate on individual tax measures, but will he deny that the No. 11 machine has been leaking these stories to the national press over the summer?
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Property Taxes
The hon. Member and a number of his colleagues have referred to the reduction in interest rates as the sign of a growing economy. If he even googled it, he would realise that the first explanation for the Bank of England reducing interest rates is that it is worried about a weakening economy. Does he not realise that?
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Property Taxes
I have been told that we are speculating today, so I do not know whether I have to refer to my entry in the Register of Members’ Financial Interests. However, in an abundance of caution, I declare that I am a homeowner and I also have properties for rent. The kids in Downing Street—whether in No. 11 or No. 10—think it is clever to fly kites about tax rises. We had it last year, from 4 July onwards, with briefings to the press saying there would be tax rises because of a wholly fabricated £22 billion black hole in the economy. That was fabricated as a fig leaf for tax rises that were not in the manifesto. From July to October, those stories dripped in one after the other—and what was the impact? It has been the collapse in business confidence to pandemic levels, the collapse in consumer confidence as a result, and unemployment beginning its inexorable rise month after month for every single month that this Government have been in office. Now the Government are at it again. They have not realised their past terrible mistake, and they are doing it once more. Despite raising taxes by £40 billion last October and increasing borrowing by another £32 billion, they have created a genuine black hole, which the National Institute of Economic and Social Research suggests means that about £51 billion is required in higher taxes or lower spending. The briefings have started again—a property levy on mansions, the replacement of stamp duty with a national property tax, national insurance contributions on rental income and capital gains tax on primary residences with a value of more than £1.5 million. Even Which? magazine has said there may be changes to the in-life gifting regime to reduce inheritance tax.
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Property Taxes
My hon. Friend is absolutely right. Do the Government not recognise that posturing from the Government Benches does not come for free? Construction activity has had a bigger fall recently than in the last five years due to the leaks from No. 10 and No. 11. The commercial property sector is in recession. There are hiring freezes and staff are being laid off. People are losing their jobs because of the Government’s kite flying. Residential property prices had a surprise fall last year. We are asked to believe that growth is the No. 1 priority of this Government. They say they are going to build 1.5 million houses during this Parliament. Merely saying that does not make it true, when their policies serve to do exactly the opposite. If Members do not believe me, look at the markets—they are not politicians. Look at the 30-year gilts that the Government are paying today. Government debt is now running at 5.73%. That is the highest rate this century. The markets think that further tax increases will damage growth. That means they will damage the fiscal environment in the future. We will have less tax in the future because of the tax-raising decisions the Government are apparently going to take in November. Labour is planning, literally, to rob Peter to pay Paul. This is no way to run an economy. As someone much more famous than me once said, the problem with socialism is that you eventually run out of other people’s money. Stop now. Stop before it is too late to avoid a vicious debt spiral. I fear—I genuinely fear this—that the Government will be forced to cut spending. They have two options: they can be forced to do so by the markets in a chaotic fiscal event, or they can take the responsibility of government seriously and take the difficult but necessary decisions on spending that the country needs them to take as a responsible Government. Otherwise, they will be swept away by their own incompetence.
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Property Taxes
My hon. Friend is making a powerful speech. He mentions the hospitality sector. Does he recognise the Government’s cruel decision to reduce the business rates discount for the hospitality sector from 75% to 40%? It does not sound too bad, but it is actually a tax increase of 140% on the struggling hospitality sector. What impact does he think that has on future investment plans?
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Hospitality Sector
As we have heard, hospitality is a crucial part of our economy. Our pubs, restaurants, hotels and other businesses employ 3.5 million people—over 5,000 in my North West Norfolk constituency alone, contributing £136 million to my local economy—but this Government’s decisions have hammered the sector. As the owner of the Crown and Mitre pub in King’s Lynn, which I highly recommend, recently put it in the local Lynn News: “How many rising costs can you face before collapsing face-first into the till?” Will’s grim humour says it all. He says that costs are piling up faster than a “bad souffle in an over-heated oven”. But the reality is no laughing matter. When we were in Government, the Conservatives supported the sector. We boosted growth and helped it to recover from the difficult decisions that we had to make during covid. That record stands in sharp contrast to what we are seeing today. All Members will know from talking to hospitality businesses in their constituencies this summer just how worried they are about the increased costs. When I was at the Rose and Crown in Harpley during the summer, talking to the team that reopened that pub and had pubs across Norfolk, I heard just how damaging the increase in the national insurance rate has been. The lowering of the threshold to £5,000 has also been a real challenge. That change alone has brought 750,000 workers in the sector into national insurance for the first time—and what has happened? Well, as UKHospitality’s TaxedOut campaign shows, Labour’s decisions have already cost nearly 90,000 jobs in the sector, particularly hitting younger people, part-time workers and those starting out in entry-level positions, which they can then grow into the career that the Minister said that he hoped more people would have an opportunity to do. The jobs tax is costing the sector as a whole £3.4 billion a year. Little wonder that a third are now operating at a loss. Three quarters have had to put up their prices to cope with the increased costs that they are facing, and two thirds are reducing the hours of their existing staff, and are not taking on the people that they otherwise would have done. Little wonder, too, that UKHospitality has called the Government’s decisions a “hammer blow” for the sector. But it is not just the jobs tax; the Government’s choice to almost halve hospitality and leisure business rates relief from 75% to 40% will hit a quarter of a million businesses. I was very surprised, as I am sure the sector would be, to hear the Minister boasting about this damaging decision, given that the average pub is paying £5,500 more and restaurants are paying £9,000 extra. How does he expect them to absorb those costs without the consequences for employment that we are seeing? Depressingly, there is even more to come. The Deputy Prime Minister’s Employment Rights Bill—or whoever picks it up after her—will add £5 billion a year to employer costs, making it less likely that firms will take on people. Our hospitality firms are resilient, and they need to be with all they are having to weather. This Government are putting them under the cosh. With creativity, investment and the high-quality staff across the sector, hospitality firms can attract customers and support our local communities. I have seen many impressive hospitality businesses in my constituency, including ones that have newly reopened—the Ship in Brancaster, the Chequers in Thornham, the Pub in Clenchwarton, and new enterprises such as Nopa and VinedMe, which are also in Thornham—but the Government are making it far too hard for firms like those to thrive and grow. Members have the opportunity today to back our very sensible motion to back the sector, to think again about the doubling of business rates, and to amend the damaging Employment Rights Bill to protect seasonal and flexible work. With borrowing costs at a 27-year high, hospitality businesses cannot afford for a Government to be making such damaging economic choices. Ahead of the Budget, the Chancellor and her team of tax raisers should listen to employers and take action to live within our means, otherwise more pubs, more venues and more jobs will be lost.
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Use of Drones in Defence
It is a real pleasure to serve under your chairmanship, Ms Lewell. I know you take a great interest in these matters because you served on the Defence Committee when I was a Minister, and I am sure you regard this debate with great interest. I congratulate my hon. Friend the Member for Bromley and Biggin Hill (Peter Fortune) on introducing this debate, because the issue of drones is so timely, interesting and, I dare say, urgent for defence procurement, defence training and all aspects of defence. He made a brilliant speech. It was not only delivered well but made some important and substantive points on, for example, countering drones, which should be considered as important in this debate as the acquisition of our own strike-reconnaissance capabilities and so on. I am pleased that we have the Veterans Minister here, and I know he is also very passionate about this subject. I quickly say, especially as the hon. Member for Strangford (Jim Shannon) is here, that people are still the most important capability, despite everything we will say in this debate. I hope he will be as robust as possible in standing up for our veterans in the weeks ahead, because this stuff will come to a head. All of us who care about the British armed forces have to stand by those who served all those years ago, so that we do not undermine the morale of those who serve today. On the key subject of drones, my main argument is that they are an amazing opportunity for the United Kingdom to fundamentally modernise its armed forces in a way we have not done for a long time. In many ways, we are quite lucky, because drones bring mass and lethality to our existing forces relatively cheaply and relatively quickly. Above all, and this is underestimated, we are in an amazing position to capitalise on that in many ways, for reasons that have not been fully shared with the public. I will now try to do that. The day I became Defence Procurement Minister in April 2023, there was a vote in the House of Commons. People came up to congratulate me as I walked through the Lobby, and every other colleague said, “By the way, you’ve got Ajax,” which is what defence procurement was known for at the time. Two months later, I made a statement to the House about Ajax resuming field training with the Army and the Household Cavalry, and how it is a highly capable vehicle. However, I had a sense, as Defence Procurement Minister, that there was a parallel universe. There was business as usual, with long procurement times and many delays under successive Governments—the old way. On the other hand, there was what we were doing in the MOD for Ukraine. It was like a parallel universe. We acted at pace for Ukraine with incredible scale and innovation. We got thousands and thousands of shells from around the world and delivered them to Ukraine. It was an incredible exercise, of which I am very proud. I am also very proud that the current Government have continued it. Nowhere was this difference more striking than in drones. I would not quite call it an epiphany—I do not know the right word—but my most memorable moment as Defence Procurement Minister came in the autumn of 2023, when I visited an SME in the south of England. It had developed a drone—at the time it was highly sensitive, dare I say classified—that went on to be used in Ukraine. It was a highly effective long-range, one-way attack drone, now a matter of public record. This SME, not a big prime, had developed a drone relatively cheaply and very quickly, and it made an impact on the frontline against a peer military of Europe. That was extraordinary. Revolutionary. I was so struck by it, but what really got me—the thing that is most important about the uncrewed area—is that the SME was getting feedback from the frontline within days, if not hours. It was using that feedback to immediately upgrade the capability by changing various important but relatively subtle parameters. I was immersed, as all Defence Procurement Ministers are, in the endless emails about delays to the latest big platform, or whatever it was, so I was struck that there is a different way. What did I do about it? As my hon. Friend the Member for Huntingdon (Ben Obese-Jecty) and the hon. Member for Strangford said, I launched the drone strategy in February 2024. It was relatively simple. The Secretary of State always says it was only 12 pages, but the truth is that it was a lot shorter when it was first presented to me. I was pretty furious about that, because to me drones are a fundamental part of defence. The key point is that I wanted it to reverse the sense of living in a parallel universe. I wanted us to embrace what we were doing for Ukraine so that our armed forces could benefit in the same way. It is simple to summarise the strategy: to continue delivering drones at scale for Ukraine—thousands of them, as we did and as the current Government have done—but, in parallel, to develop our own SME drone ecosystem for the British armed forces. That is what I wanted to do. In February 2024, I also announced the integrated procurement model, which I am very grateful that you mentioned in the recent Defence Committee debate, Ms Lewell. The key thing is that it was also relatively straightforward. Instead of these very long development times for new equipment, it is about setting minimum deployable capability—to get things into use as quickly as possible, where they can be used if the balloon goes up, to put it bluntly—and then to develop them spirally in service. That is how the modern world works, and it is how software companies have always sought to work: get it going, and then constantly upgrade. That is the only way to keep pace with technology. That procurement model went live in April 2024, and the general election was called in May, so it is fair to say that there was not a huge amount of time to introduce some of it, but we made some progress. I now want to talk about some key points about how to ensure that the UK seizes this opportunity so that our armed forces are world leaders in the use of drones. The first point is the most important. This has not been a political debate, and I am not trying to play party politics, but I have also been a Treasury Minister. When I was the Minister for Defence Procurement, I was in all the discussions about how to get to 2.5%, so I know what it is like to deal with the Treasury. What happened is that when the new Government came in—they are not the first to do this—the Treasury put a clamp on procurement as a way of controlling in-year budgets. It is very common. The Treasury frequently tried to do it with us, but Ben Wallace and Grant Shapps, the Secretaries of State, always pushed back. I tried to work with the Treasury to find compromises and to prioritise the procurements that were most important to the Department. The consequence is that, for months, there has been an effective procurement freeze. Defence companies tell us that they are waiting and waiting. They were waiting for the SDR, and now they are waiting for the defence investment plan, which will put in place the decisions of the SDR. They have been waiting for the defence industrial strategy. They have been waiting for the appointment of a national armaments director, who will come in as a great white knight and solve all these problems. By the way, when the problems are really tough, the companies will turn around to the Defence Procurement Minister, who earns about a thirtieth of what they do, and ask them to solve it because it is political, which it always ends up being. In the meantime, we need to get on with it, so let me suggest an idea. My hon. Friend the Member for Bromley and Biggin Hill said that when we tabled a written question asking how many drones have been ordered since the general election, we were told three, which is extraordinary. When I raised the matter with the Secretary of State, he said that it was a specific answer to a specific question. It certainly is, but it is still fairly shocking. What we have found, particularly when we talk to those in the Army, is that there are drones coming into their units, but they are, for example, through sports—they do drone sports. There is not yet a central push to transform the forces to fight with uncrewed systems. So where could we get the money? My personal view is that the Chagos deal is basically bonkers. Next year, we as a country will spend £250 million leasing back a base that we currently own freehold—the islands too, of course. Half that budget could transform the UK drone ecosystem, because tens of millions of pounds would make a difference. There is one risk: how do we buy drones when, in theory, they go out of date so quickly? There is no risk to what I would call a training order. We should buy enough drones from British companies so that the Army can start training with them at scale. But the crucial thing is not the manufacture or the initial buy; it is establishing the relationship between our forces and those SMEs so that they are constantly developing them in service. That is how new technology works. That is a relatively inexpensive step to take; it just needs leadership, and I know the Minister wants to make it happen. Another key point is testing. In June 2023—two months after I became Defence Procurement Minister— I held a roundtable in Larkhill with what were then the main UK defence drone SMEs. It was a really fascinating meeting. I went round the table and said to all of them, “Name the one thing the Government could do to help you,” and they all came up with the acronyms CAA and MAA—in other words, the Civil Aviation Authority and the Military Aviation Authority. They all wanted it to be easier to test drones, particularly kinetic drones, in the UK. I was encouraged recently when I attended the Royal International Air Tattoo and was told by a relatively senior military officer that there will be testing on the Outer Hebrides range—in Benbecula, I think, which I visited when I was a Minister—for firing what are still dummy drones, but testing them as far as we can in the UK. I fully accept that there is a limit to how we can test, particularly if the drones have explosives, but we have to be able to test more than we currently do. It is not just testing for the SMEs. My team met some reservists recently who talked about the red tape and what they have to fill in even to be able to use a reconnaissance drone for Army training. As is so often the case in the MOD, others will assure us, “It’s all fine, Minister.” On the MAA and the CAA—we set up a working group with the Department for Transport—I remember being told, “Minister, it’s all sorted. It’s all fine,” but then the SMEs told me something different. We have to grip this competition because we want to win it and it is vital to our prosperity. Colleagues talked about training. The hon. Member for Epsom and Ewell (Helen Maguire) made a very good point about making drone use part of regular training. This is not so much my area of expertise. The Minister obviously has great expertise in this area, and I hope he will touch on how we are bringing forward training in the use of drones at a unit level. My hon. Friend the Member for Huntingdon, having served in the infantry, obviously speaks with massive experience. He made the point that we need an Army that can fight with these things. It is all well and good talking about procurement, which is the side I have seen, but how do we get them into the Army to rapidly boost its lethality and survivability? That is what we all want to see, and it is what the new head of the Army, the Chief of the General Staff, will deliver. My hon. Friend the Member for Huntingdon raised an important point about GCAP. When I worked on GCAP as a Minister, it was primarily on the diplomatic side. [Interruption.] The roof is creaking slightly. Hopefully that is merely the power of my oratory and rhetoric, and nothing to be concerned about. On GCAP, I will refer to a couple of points I made last September when we were invited to make submissions to the SDR. At the time, I was merely the interim shadow Defence Secretary while my party awaited a new leader. I do not know if anyone read our submissions—I think AI read a lot of the submissions—but my two points are still worth considering. First, instead of focusing on 10-year equipment plans, which would become the defence investment plan, we need much more focus on a three-year war readiness plan in each of the forces. That is something that the Chief of the General Staff has, in effect, been talking about. If that were done with the RAF, it would be much harder for it to meld all the elements of GCAP into one. The other point I made is that we really need a two-pillar GCAP—a bit like AUKUS. The first pillar is the platform, which is where the focus inevitably always is in defence—that is the old, platform-focused procurement model. Instead, we should have a second pillar with all the ancillary stuff. That would include, as my hon. Friend the Member for Huntingdon said, the “system of systems,” particularly electronic warfare capability and drones. That needs to come into service much faster. The key thing to all of this is the threat. If the threat really is only two or three years away, we have to be stronger in two or three years. The aspects of RAF development that are to do with loyal wingman are about helping our current aircraft. Forget about the stuff that will arrive in 2040, important though that is; it is about the capabilities that can help the current Typhoon fleet and the F-35s to be even more lethal and capable. We know that drones can fly with them. We need to accelerate all of that. My hon. Friend the Member for Bromley and Biggin Hill made an important point about the Red sea, which has also been a key testing ground for drones. The key point is that the drones were not only threatening Ukraine; they were threatening our own Royal Navy. HMS Diamond was attacked. As a Minister at the time, I had a real sense that this was a clear and present danger because the drone attacks had to be thwarted with much more expensive missiles, which is the key issue. However, we know that Iran was supplying more and more sophisticated ballistic missiles to the Houthis. That is on public record. How could we defend against all those things? I therefore felt we needed to accelerate all ranges of technology that could help to intercept drones relatively cheaply, so that we could keep our missile stocks for the really exquisite threats. We need a balance between expensive and cheap capabilities, which is why DragonFire is a good example of something we should take forward. All Members have focused on the counter-drone point. I cannot think of a better symbol of the parallel universe—the way we have delivered for Ukraine but not for our own armed forces—than the fact that, if we visit the Army today, its electronic countermeasures will be the box that was used in Afghanistan. That was very good at the time, but it is not up to date. Nevertheless, a British company has been delivering, in real time, countermeasure kits to Ukraine that have been incredibly successful and are saving lives on a real frontline. We should be buying those for our Army at the same time. That is why I say it feels like a parallel universe, which is what we need to break. I know the Minister understands that and is as passionate about it as I am. The hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) spoke about how to defend against the drone threat, and he particularly spoke about armour. My hon. Friend the Member for Huntingdon spoke about tanks and the need to protect their tracks. I do not have that level of battlefield experience, but it is true to say that we must move quickly on lasers, directed energy weapons and, particularly, sound weapons that use radio frequencies—they are currently a bit indiscriminate, but they have a lot of potential if they are refined. We have to go at these things as fast as possible. Britain has an amazing science base. That brings me to my final point, which is about autonomy. This is really about technology and the need to outthink one’s opponent, as much as anything. If we are honest, we will never have every aspect of every drone made in the UK. The areas where we really need to lead are the brain—the science. Britain has an amazing science base. I always found the Defence Science and Technology Laboratory’s advice fascinating. The DSTL has huge experience and works well with the military. We could go further on the way in which DSTL and the defence science base link in with SMEs. There has been a lot of progress on that, but we can go further. Going back to the drone I was talking about, the company was successful because its link to the data really gave it the edge. That is what we have to do: we have to enable SMEs to come into Main Building or other secure environments and to be constantly fed the battlefield data—what is really happening in warfare—so that they can respond quickly. This is really about autonomy. The hon. Member for Poplar and Limehouse (Apsana Begum) spoke about the situation in Gaza. I know that there are people who are worried about the ethics of the autonomous use of weapons, and I understand that. I appeared before the AI in Weapons Systems Committee in the House of Lords, where the Bishop of Coventry asked me some interesting questions about the ethics of all this. I would simply say—okay, this is a defence point of view—that we should be very wary of in any way tying our hands on the use of autonomy, because you can bet your bottom dollar that the Chinese and the Russians will not be doing that. We have to maintain our ability to compete with them. Phalanx is the gun on the side of some of our ships. When it is on, it is effectively autonomous. If something flies into its sight that fits certain parameters, it will fire. No one presses a button. The point, though, is that there is a chain of command and a way back that will have been built by someone from a country with a democracy and so on. So it is the whole life cycle that we have to take into account. We should really invest in autonomy. We should back our science base, working closely with our SMEs. I finish by saying to the Minister that we are all patriots here. We want to succeed. We want to have the world’s best armed forces. We want to lead in this. We know we can. We have done amazing things. When we supply Storm Shadows and leading drones to Ukraine, we are going to know a bit about how to use them. We have never been directly involved, but we have done so much that we are well placed to learn from it. I hope the Minister can drive this forward. He knows he has our backing in doing so, but we need to see greater pace and urgency and, ultimately, not just big defence documents, but kit in the hands of those who serve our country.
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Use of Drones in Defence
The Minister is making a fascinating speech, and he knows that I am as interested in this subject as anyone. On the naval point, it was an incredible moment in May when a Ukrainian naval drone downed a Russian Su-30, I think. Does that not point to some of our looming procurements—for example, future air dominance, the Type 83, and all those things in the Navy’s assumptions about how we defend this island in the future? We are an island, so the potential for us to be protected by uncrewed barges and sensors carrying effectors way out in our ocean is an exciting development.
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Use of Drones in Defence
I called my reform the integrated procurement model, because I think the Minister is right: integration is so important, and it has been a deficiency of our bottom-down approach. However, does that not mean that we will need some kind of C2 system for our military? When I was in post, there was a lot of talk about ACCS, which was the system developed for NATO, but frankly was not fit for purpose. That would be a very significant investment. Is it something that the MOD is currently looking at?
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Engagements
Q12. Like many, I was deeply concerned that a police force deemed it necessary to take five armed officers to arrest a comedy writer from a flight. Some may have found Mr Linehan’s comments offensive, but that is not the point. If we do not support speech that we do not like, we do not support free speech. Will the Prime Minister commit to reviewing our speech laws to ensure that legitimate free expression is protected and will he condemn the culture within the public sector that prioritises this dangerous and perverse nonsense?
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Property Taxes
I thank the shadow Chancellor for introducing this debate on such an important issue. Properties and assets are vital to the country and to people. On the lifetime limit for inheritance tax, over the past year everyone will have heard the Government telling farmers and family businesses to get their affairs in order and to plan. Not having a limit on the lifetime cap was what allowed them to plan. If that is cut or the cap is not in the right place, it will negate every argument that the Government have made in the past year to justify their family farm and family business tax. Will the Minister please acknowledge that and rule out any change to the cap, which would penalise family farms and businesses?
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Property Taxes
On that point, will the Minister give way?
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Property Taxes
The fact that the Government hope to build all those new homes shows that they recognise the importance and value of a home to a family. The Minister says that he will not talk about specific tax measures, but does he recognise the principle that we should not tax people’s homes if we are a country that values home ownership?
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Use of Drones in Defence
My hon. Friend is making a powerful speech, with which I agree. Like him, I have been part of the armed forces parliamentary scheme with the Royal Marines. Over the past year, he and I have seen drones deployed—I will not say where. More importantly, there is innovation in the Royal Navy and the Royal Marines, but it is compartmentalised and bitty, and it is not at the scale that he is talking about. Is it not time for the Government to use the innovation in the armed forces to expand out into the private sector?
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Property Taxes
The Treasury has been flying more kites than we saw at the end of “Mary Poppins” in the papers over the last few weeks, but if they are genuine, the Chancellor is preparing the most destructive raid on homeowners in living memory. Families across my constituency are bracing themselves for new taxes on homes worth more than £500,000, capital gains tax on family houses, a revaluation of council tax, and even a land value tax. This is not reform; this is a sledgehammer aimed squarely at aspiration, mobility and stability, and once again it is the south and the south-east that will be punished the most. In Farnham, where the average house price now exceeds £608,000 with the price of detached homes at nearly £900,000, families could face annual bills of nearly £5,000 on top of mortgages, council tax and energy costs. In Haslemere, Liphook and Bordon, households will not be spared; these levies will strip thousands from budgets already stretched to the limit. And what of pensioners and downsizers in Grayshott, Churt, Bramshott, Tilford, or Frensham? They will face the grotesque prospect of capital gains tax on their primary residences.
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Property Taxes
My hon. Friend is entirely right. Once again, the Government are showing that they do not understand and do not value pensioners and the sacrifice that they have made. Everyone—pensioners, farmers and business owners—is seen as a cash cow for this Government.
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Property Taxes
I do not want to correct the hon. Gentleman, but I was not here to oppose or support any of them. I gently remind him—I use the word “gently” because I know that the Minister loves the word “gently”, so I have used it twice now—that there was a pandemic that had to be dealt with, and that had to be funded. There was a war in Ukraine, and dealing with that had to be funded. As we have gone back in history a bit, let me add that we also had to deal with the deficit that the last Labour Government left us. That is the reality of the situation.
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Property Taxes
No, I will not. I have already given way a couple of times. This is a tax on the family home, and it will hit hardest those who have worked hard, saved responsibly, and played by the rules. Let us be clear: this is not simply a question of numbers on a balance sheet. It is about whether families can stay in the communities where they raised their children, whether pensioners can pass on their homes, and whether young people will ever see the ladder of opportunity come down again. A capital gains tax on main homes will trap people in their properties, create a locked-in market, and dry up the supply of homes. Transactions will slow, chains will break, and first-time buyers—the very people whom Labour claims to champion—will be shut out even further. The Government have tried to defend this agenda by talking about “fairness”, but there is nothing fair about a pensioner in Greatham being forced to sell his or her family home to pay the taxman. There is nothing fair about young families in Lindford choosing between childcare and a new annual property levy, and there is nothing fair about placing the heaviest burden on one region of the country simply because the value of its housing stock is higher. In truth, this is a south and south-east tax dressed up as national fairness; and it is part of a pattern. From scrapping the pensioner fuel allowance, mentioned by my hon. Friend the Member for Bromley and Biggin Hill (Peter Fortune), to threatening VAT on private schools to punitive business tax rises, every single decision seems to be about sending a political signal rather than supporting families or growing the economy. The consequences are plain to see: falling business confidence, another year of negative hiring expectations, and growing unemployment. Wasn’t the Government’s White Paper meant to be called “Get Britain Working”? All we are seeing is Britain grinding to a halt. The Chancellor may talk of fairness, but she is stripping away the last sanctuary for working people—the roofs over their heads. Over-taxation, without clarity, will paralyse the housing market, punish my constituents, and undermine economic stability. If you tax homes, you tax hope, and that is the surest way in which to drain ambition from our country. We should be protecting families, not forcing them to sell up. We should be supporting aspiration, not taxing it into extinction.
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Property Taxes
Will my right hon. Friend give way?
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Hospitality Sector
Hospitality has been battered by a perfect storm of punishing taxation, regulation and soaring operational costs, which has left pubs and restaurants fighting for survival. In recent months, I have visited 36 of the 55 pubs in my constituency and hosted a hospitality roundtable. I will shortly be sitting down again with the family chain, the Healy Group. Everywhere I go, the story is the same: rising costs, thinning margins and landlords asking, “How much longer can we keep the lights on?” In this darkness, I can bring a little ray of delight and hope to my constituents. During the summer recess, I continued my constituency pub tour, part of my best pub campaign. I am delighted to announce to the House that the Crown at Arford has won that accolade in the Farnham and Bordon constituency. You may be aware, Madam Deputy Speaker, that Fleetwood Mac’s “Down at the Crown” was inspired by this pub, so if the Chancellor ever finds herself lost in East Hampshire, she might fancy a visit—though judging from Labour’s economic stewardship, she would probably relate more to one called “Closing Down at the Crown”. I joke, but there is nothing amusing about the reality. Since May, four pubs in my constituency have been driven out by Labour’s relentless war on small businesses, including the Wheatsheaf Inn at Grayswood, which has closed indefinitely. The sector is collapsing, despite what Government Members say. Six pubs are closing every single week. That is because, from April this year, relief collapsed to 40%, halving their protection while doubling their pain. The Budget hiked national insurance, increased the minimum wage and added £3 billion to their bills. The Chancellor’s 1p off a draught pint gesture was not just laughable but insulting. Jay at the Six Bells told me bluntly that on a £5.50 pint, pubs make about 8p. That is the future that Labour is offering. The Bluebell in Dockenfield, a family business run by Lucy and Robin Catchpole, is fighting tooth and nail to thrive. Pubs are the heart of our towns and villages, and Labour is ripping out that heart.
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Hospitality Sector
That sounds like an interesting idea. I will support anything that will get the pub industry thriving, but to be frank, Labour is destroying the opportunities for pubs to thrive, and I am afraid a guest ale will go no way towards solving that problem. I am conscious of time, Madam Deputy Speaker, so I will touch briefly on the fact that it is not just Labour in Westminster that does not understand the hospitality industry. The Liberal Democrats in Waverley are showing the same wilful blindness. Farnham is undergoing major infrastructure works, and its hospitality and retail businesses are struggling. I urge the council to act. It has the powers to provide business rates relief, but it has done nothing. Borelli’s Wine Bar and Grill, for example, has operated since 1987, yet the Lib Dems sit on their hands, proving that they share Labour’s contempt for small businesses. Hospitality is being taxed, squeezed and regulated into oblivion. If Labour carries on like this, the last orders bell will ring not just for our pubs, but for the very character of British life itself.
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Pavement Parking
It is a pleasure to serve under your chairmanship, Mrs Hobhouse. I, too, congratulate the hon. Member for Epsom and Ewell (Helen Maguire) on securing this debate. I am grateful for the opportunity to speak in today’s debate on pavement parking, an issue that may seem mundane at first glance, but that, in reality, touches on safety, accessibility and dignity in every one of our communities. Pavement parking is not just unsightly; it is downright dangerous. When cars mount pavements, they force pedestrians off the footway and into the road, directly into the flow of traffic. For many, that is inconvenient; for many others, it can be life-changing. For someone in a wheelchair, a single car blocking the pavement can mean a 10-minute diversion, or the frightening prospect of rolling into a busy road. For someone with a visual impairment, it can mean walking straight into the bonnet of a car—an obstruction they cannot anticipate. Carers supporting people with hidden disabilities—perhaps guiding an autistic child who finds traffic overwhelming, or pushing a specialist buggy—find themselves in exactly the same position: what ought to be a simple walk to the shops or to school can suddenly become an obstacle course. Guide Dogs research tells us that 85% of people know that this issue is a danger for those with sight loss, and nearly three quarters say that it is common in their area. Local councillors, including my own in Buckinghamshire, hear directly from residents and overwhelmingly report that pavement parking creates a safety risk, with many saying that it is one of the issues raised with them most often. Of course, as the Chair of the Select Committee, the hon. Member for Brentford and Isleworth (Ruth Cadbury), has already said, London has had a ban on pavement parking for many years, but the rules are far less clear outside our capital. Local councils can bring in restrictions through traffic regulation orders, and they have had permission to use standard signage without asking Whitehall for approval since 2011, but that system is patchwork, complex and slow. That is why, in 2020, the last Conservative Government consulted on how to go further. More than 15,000 people responded. The consultation looked at a nationwide ban with sensible exemptions—recognising, for example, the realities of narrow rural lanes or terraced streets, where pavement parking has been part of the layout for decades. Yet here we are, nearly five years later, and there is still no formal response from the Department for Transport. Public opinion, though, could not be clearer: eight in 10 drivers want action. Two thirds see pavement parking in their neighbourhoods on a regular basis, and a third see it every single day.
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Pavement Parking
I have a lot of respect for the hon. Lady. The Government have had a year to take action, and they have not. I have not been in the House as long as she has, but I was here in the last Parliament and I was a member of the Transport Committee for the entirety of it. I, too, sat around the horseshoe with the hon. Member for Brentford and Isleworth, and indeed the Minister for some of that time. I certainly recognised the challenges of pavement parking and pushed for solutions in the last Parliament as well. I fully acknowledge that we are five years on, and that some of those years were under a Conservative Government, but action is required now. If we are to have a serious debate, the onus is on the present Government to come forward with the necessary actions. One of the issues that I notice in my constituency is the challenge of pavement parking in a lot of our new build areas and estates, where the planning system has quite deliberately tried to restrict parking. Guess what? That has created chaos on the streets in its own right, because people still require the same number of cars to get about, particularly in rural communities. Someone cannot do the family shop for a family of five on the back of a bike. We all recognise that there is no one-size-fits-all answer. A blanket national ban is not going to be practical everywhere, but we cannot accept inertia. We cannot ask people with disabilities, carers or families to keep waiting while this problem goes unaddressed. I call on the Minister to come forward with practical steps and a realistic timeline, and then to commit to that and solve the problem.
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Property Taxes
My right hon. Friend is right to highlight the massive impact of these tax rises on so many families and businesses up and down the country. Will he comment on how we can have a Deputy Prime Minister who has admitted avoiding paying the tax that she owed and who continues in office? And this, from a party that called for the resignation of people for far lower offences! Does that not expose the rank hypocrisy that seems to run right through this Government?
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Property Taxes
I congratulate the hon. Gentleman on his appointment. In the Labour manifesto on which he will remember he stood along with his colleagues, it was suggested that there would be tax rises under a Labour Government. I think the figure was £7 billion. In the event, £40 billion-worth of rises came forward in the autumn. Will he commit the Government to being more transparent in future in preparing the markets for tax rises, and, indeed, the people who have to pay them?
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Hospitality Sector
My hon. Friend might have been like me: the first job I ever had was as a porter, and then a barman, at the Crown and Mitre hotel in Carlisle. These are opportunities for people who are coming into the labour market for the first time or trying to get back into the labour market. The hospitality sector offers opportunity to people who otherwise have none, and that opportunity has come under devastating attack from this Government.
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Hospitality Sector
On a point of order, Madam Deputy Speaker. I wonder whether you have any advice for those in the hospitality industry listening to the Minister, who is so afraid to deal with the issue at hand that he has to resort to this ad hominem attack on our Front-Bench colleague.
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Covid-19 Vaccination Harm
I, too, want to acknowledge all the work that my hon. Friend has done. He has been absolutely tenacious on this issue. I was a Minister in the Cabinet Office, so I know. I had the calls, the questions on the Floor of the House and the meetings. I hope I can help the Minister here today, because a lot of the heavy lifting has been done in the Cabinet Office and the Department of Health and Social Care. One of the key questions that my hon. Friends raised was about the amount of compensation. Why has it not been increased, at least by inflation, in decades? A lot of that was put forward in the Cabinet Office and the Department of Health, and a lot of the work has been done and should have come to fruition by now, a year into the new Government. The other issue was about people fearful of being clocked out and not having enough time to be compensated. We need the clock to start once they are in the system and not when they are out of it. Work has been done on that as well.
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Hospitality Sector
My hon. Friend is rightly articulating that hospitality businesses are the lifeblood of our communities. Epping Forest has fantastic local pubs, such as the Theydon Oak, the Forest Gate Inn and the Bull, and fantastic restaurants such as Mila and the India Grill in Loughton. They are all really suffering under the punitive taxation regime from the Labour Government—the jobs tax and the business rates rises. Does he agree that everything they are doing is damaging our local communities?
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Property Taxes
Is not the difference now that we are seeing stagflation—high inflation and the economy not growing as it should be? We are therefore seeing job losses and unemployment going up every month under this Labour Government. Unless they do something drastically different, it will only get worse, and that will impact on our growth prospects and therefore on the prosperity not just of our nation but of the individuals who work and try to thrive here.
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Property Taxes
Is that not exactly the point—that the top 1% of earners pay almost 30% of income tax? If we lose them, we damage the people who need the support and the investment from the very taxpayers we have just scared off. Should not the reverse be happening? We should attract more people into this country to spend more money, so that we have more money for such services through tax collection.
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Property Taxes
Was it not the current Prime Minister who said “not a penny more on your council tax”? Is the shadow Chancellor aware of how that worked out?
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Property Taxes
Will the Minister give way?
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Hospitality Sector
One thing that is not picked up in the figures is the fact that cafés and businesses up and down Hinckley and Bosworth are having to reduce the man-hours that people are working to reduce their staffing costs because of the taxes that are being put in place. This is a real problem. Does my hon. Friend agree that we are not getting the growth that we want in this country because people are having to deal with this toxic concoction of legislation and tax?
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Hospitality Sector
Will the Minister give way on that point, very quickly?
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Hospitality Sector
Wales has introduced a tourism tax, or is planning to do so. In light of what we are talking about today, can the Minister rule out the UK introducing a tourism tax in the upcoming Budget?
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Duty of Candour for Public Authorities and Legal Representation for Bereaved Families
It is a pleasure to serve under your chairmanship, Mrs Hobhouse. I thank the hon. Member for Liverpool West Derby (Ian Byrne) for securing this important debate. He has been a tireless advocate for bereaved families and communities affected by tragedy. His determination to keep these issues before Parliament commands respect across the House. We owe a debt of gratitude to the campaigners and families themselves. From Hillsborough to Grenfell, from the infected blood scandal to the Post Office Horizon affair, they have shown extraordinary courage in pressing for truth and accountability. Their persistence is the reason why we are here today, and it must not be forgotten. The Hillsborough disaster in 1989 is the clearest example of why the call for a duty of candour has become louder over the years: 97 lives were lost and countless other people were traumatised, and it was very powerful for us all to hear from the hon. Member for Liverpool West Derby, who was there on that day at a young age. In the years that followed, there were inquiries, judicial reviews and inquests, yet for far too long, the true circumstances of what happened were hidden. In 2017, Bishop James Jones was asked to reflect on the experience of the Hillsborough families. His report set out in stark terms the lessons that need to be learned. He said that it was vital that the state ensure “proper participation” of the bereaved at inquests at which public bodies are represented. He identified four strands to achieving that: first, publicly funded legal representation for bereaved families when public bodies are represented; secondly, an end to the practice of public bodies spending limitless sums on their own representation; thirdly, a culture change so that public bodies see inquests not as a reputational threat, but as an opportunity to learn; and finally, changes to procedures and the training of coroners so that bereaved families are placed truly at the centre of the process. His report also served a reminder that legislation alone is not enough. As others have mentioned, we already have a statutory duty of candour in parts of our system—particularly the NHS—but too often that duty has become a tick-box exercise, satisfying process rather than securing trust. If the Hillsborough law is to mean anything, it must embed a genuine culture of truth-telling and accountability, as well as changing the law. It is against that backdrop that the idea of a statutory duty of candour has emerged and persisted. Sir Brian Langstaff, in his recent report into the infected blood scandal, reinforced the same point: too often, institutions have closed ranks, failed to disclose information openly and thereby compounded the suffering of victims and families. The King’s Speech in 2024 committed the Government to bringing forward a Hillsborough law, including a statutory duty of candour and provisions on legal representation. The stated aims were to improve transparency and accountability and reduce the culture of defensiveness, and to ensure that failures such as those on Hillsborough or infected blood are not repeated. Conservative Members are sympathetic to those aims, and it is worth remembering that some steps have been taken. Part 2 of the Victims and Prisoners Act 2024 legislated for the creation of an independent public advocate to give victims and families a stronger voice in the aftermath of major incidents. The previous Government also worked with police chiefs, prosecutors and fire leaders to establish the Hillsborough charter, which commits signatories to put the public interest above organisational representation.