Oral Answers to Questions
Debate between Angela Rayner and Alex Burghart(3 days, 17 hours ago)
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Alex Burghart (Brentwood and Ongar) (Con)
Thank you very much, Mr Speaker. I am very happy to associate myself and the official Opposition with the right hon. Lady’s remarks about Ukraine. Democracies must stand together.
What are the Government doing to bring down inflation?
The Deputy Prime Minister
I think it is astonishing that—first, may I welcome the hon. Member to his place? Many people might not know that he was the Minister with responsibility for growth when, under Liz Truss, inflation was at 11.1% and growth flatlined, so we are doing much better than he did.
Alex Burghart
Well, I thank the right hon. Lady for her standard charm. The truth is that the Government are not doing anything to bring down inflation; this Government are stoking inflation. First, we had above-inflation pay rises for the unions. Then, we had a Budget that the Office for Budget Responsibility said would increase inflation—[Interruption.]
Alex Burghart
First, we had above-inflation pay rises for the unions. Then we had a Budget that the OBR said was going to push up inflation. This morning, we had City economists—real economists—saying that next year inflation will hit 3%. Does the right hon. Lady agree that this Government’s decisions mean higher inflation for working people?
Alex Burghart
We have already talked about Ukraine. It was Ukraine and covid that drove up inflation, but this Government are doing it to the British people. High tax, high inflation, low growth, low reform—there is a word for that: it is Starmerism.
Yesterday, like many Opposition Members, I spoke to farmers from across the United Kingdom. Some of them were families who have farmed their land for centuries—elderly men in tears, children worried about their parents and all of them worried that their way of life is about to be destroyed. What would the right hon. Lady like to say to them?
The Deputy Prime Minister
First of all, we are absolutely committed to our British farmers, and—[Interruption.] That is why we have committed £5 billion to the farming budget over the next two years. That is the largest ever amount for sustainable food production in the UK, and it is alongside £60 million to support those affected by extreme wet weather and over £200 million to tackle disease outbreaks. The hon. Gentleman’s party could not even get the money out the door for farmers, failing to spend over £300 million on farming budgets. The farmers know that they were in it for themselves, and that is why we are in government and they are not.
Alex Burghart
Perhaps the right hon. Lady thinks that everyone came to London yesterday to thank the Government. Let us look at the facts. A typical mid-size, 360-acre family farm in the constituency of my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) have spoken to their accountant. Their new liability because of this Government is half a million pounds. That is 12 years’ worth of profit. When this generation passes away, that farm will become totally unviable, and it is just one of thousands and thousands of similar farms.
It is clear the Government have not got their facts right. The Central Association for Agricultural Valuers—the real experts in this field—say so. The National Farmers Union says so; it is shortly to publish a report showing that 75% of all commercial farms will fall above the threshold. If the Government are not going to reverse this terrible policy, will the right hon. Lady at least commit to no further increases to inheritance tax and no further reductions in agricultural property relief or business property relief in this Parliament?
The Deputy Prime Minister
The hon. Gentleman talks about the facts, and I absolutely stand by the figures that the Government have set out. The vast majority of estate owners will be totally unaffected. The hon. Gentleman wants to talk about the figures. I will be crystal clear: the vast majority of estate owners will see no change and pay no tax on land passed on that is valued at £1 million. Couples can pass on £3 million tax-free, and those above the threshold will pay only half the normal rate and can pay it over 10 years interest-free.
Alex Burghart
This is just another part of the Budget that is unravelling. Everyone here and all the farmers at home will have heard that there was no guarantee there. We know what that means: they are coming back for more. Even if the right hon. Lady had made a promise today, it would not have been worth a fig. We know that the Environment Secretary, before the election, promised the farmers that this would not happen. Labour promises get broken.
Let us put all this into context. The Treasury says that the family farms tax will raise on average £441 million a year. The Treasury also says that the public sector pay rises the Government announced in July will cost £9.4 billion a year. That is over 21 times as much. Why do the Government think that above-inflation pay rises for the trade unions are worth so—
Mr Speaker
Order. I do not need any more from the second Government Bench. Please, less of it—we have had a bit of a run-in recently, and I do not need to have any more.
The Deputy Prime Minister
It was the hon. Gentleman’s Government who crashed the economy—who saw inflation rise to 11.1% and growth flatline. It was his Government who spent the reserves three times over. I will take no lessons from the hon. Gentleman.
Alex Burghart
I understand why the right hon. Lady does not want to answer questions about the terrible choices the Government have made. It is because the truth is ugly. The truth is that this is a punishment meted out to people who do not vote Labour. It is the same punishment meted out to parents who send their children to private schools. It is the same punishment meted out to the owners of small businesses who are terrified about national insurance contributions, and it is the same punishment meted out to pensioners who cannot afford to pay for their fuel this winter. Is it not the truth that if you do not vote Labour, they do not care about you? [Hon. Members: “More!”]