Inheritance Tax: Impact on Rural Businesses

Debate between Lord Livermore and Baroness Foster of Aghadrumsee

Thursday 1st May 2025 Lords Chamber

[Lord Livermore (Lab)]

I am grateful to the noble Baroness for her question. I fully recognise that she has a great deal of expertise in this area and I pay tribute to the work that she has done, particularly on behalf of tenant farmers. I do not accept the premise of her question. I fully respect the commitment that has gone into the survey that she spoke of but do not necessarily accept its conclusions. Our commitment to tenant farmers remains steadfast, which is why we are investing £5 billion in farming over two years, the largest budget for sustainable food production in our country’s history.

I take seriously what the noble Baroness says about mental health. Mental health is of course an issue that the Government take extremely seriously, which is why we are working to improve mental health services across the country, including through plans to recruit an additional 8,500 mental health workers. We fully understand the strength of feeling on this issue, and we urge people to make sure they use the correct data to prevent further inflaming the debate.

[Baroness Foster of Aghadrumsee (Non-Afl)]

My Lords, the nature of farming across the UK varies greatly. For example, in Northern Ireland the size of family farms is smaller but the price of land is a lot higher per acre. Given that that is the case, and given that families in Northern Ireland are concerned about the incoming changes, will the Minister commit to looking at an impact assessment not of the macro situation in the UK but of the different regional variations?

[Lord Livermore (Lab)]

I am grateful to the noble Baroness for her question. As she may know, as is standard practice, we will publish a tax information impact note alongside the draft legislation before the relevant Finance Bill. My honourable friend the Exchequer Secretary has engaged extensively with stakeholders in this area, including with the Ulster Farmers’ Union. We have fully listened to the issues that the noble Baroness raises. However, it is worth saying that individuals will still benefit from 100% relief for the first £1 million of combined business and agricultural assets, and above that amount there will be 50% relief, meaning that inheritance tax will be paid at a reduced effective rate of up to 20%. That is considerably more generous than in any other part of the economy.

Public Finances: Borrowing Costs

Debate between Lord Livermore and Baroness Foster of Aghadrumsee

Thursday 9th January 2025 Lords Chamber

[Lord Livermore (Lab)]

I agree with a lot of what the noble Lord says. He and I are both strong supporters of an industrial strategy. The Government’s new modern industrial strategy is a core component of what the noble Lord is asking for. We are introducing a new industrial strategy that will give the private sector the guidance it requires about the sectors that we would like to see investment coming into. We are doing planning reform, which is one of the biggest reforms that we can possibly do to unlock new levels of private sector investment in the economy. We are doing pension reform, which the Chancellor set out in her Mansion House speech. We are doing skills reform—another key component of unlocking investment in our economy. All those things will significantly boost growth in our economy, but none of them is yet included in the OBR’s forecast.

[Baroness Foster of Aghadrumsee (Non-Afl)]

My Lords, how concerned are the Minister and His Majesty’s Treasury that £9.6 billion of cash was withdrawn last year from the London Stock Exchange—the highest amount on record?

[Lord Livermore (Lab)]

Clearly, ensuring that UK businesses have access to finance is crucial to this Government’s economic policy.

Wales: Public Services

Debate between Lord Livermore and Baroness Foster of Aghadrumsee

Tuesday 5th November 2024 Lords Chamber

[Lord Livermore (Lab)]

As always, my noble friend says it far better than I could. I nearly always agree with him, and I do so on this point in particular.

[Baroness Foster of Aghadrumsee (Non-Afl)]

My Lords, the Barnett formula was introduced for Scotland by a Labour Government in 1978; then it was applied to Wales and then to Northern Ireland. That is nearly 50 years ago. Surely it is time to look at a new mechanism that will reflect the modern devolved Administrations.

[Lord Livermore (Lab)]

I give the noble Baroness the same answer that I have given already: I do not think the Government have any such plans. The Northern Ireland Executive settlement for 2025-26 is the largest in real terms of any Northern Ireland Executive settlement since devolution. The Northern Ireland Executive will receive £18.2 billion in 2025-26.

Independent School Fees: VAT

Debate between Lord Livermore and Baroness Foster of Aghadrumsee

Monday 21st October 2024 Lords Chamber

[Baroness Foster of Aghadrumsee (Non-Afl)]

My Lords, I am grateful to the noble Lord. Is the Minister aware of the disproportionate impact that this tax will have on Christian schools in Northern Ireland given the structure of the education system there? Given that, will a specific impact assessment be carried out?

[Lord Livermore (Lab)]

The impact assessment will cover the full range of expected impacts.