Inheritance Tax, National Insurance and VAT

Lord Weir of Ballyholme Excerpts

Monday 27th January 2025 Lords Chamber

[Lord Weir of Ballyholme (DUP)[V]]

Whatever the stated intentions of the Government are with this raft of measures, it is clear that the suspicion is that they are, at best, ideologically driven or, at worst, tribal in nature, with farmers, those sending their children to private education and even pensioners above the level of pension credit being seen as fair game. It is economically illiterate and, I believe, runs contrary to the Government’s aims.

No better example of this can be given than the proposed imposition of VAT on private schools. The negative impact of the diversion of pupils is not simply supposition or scaremongering but has been proven by experience. About 15 years ago, the then Sinn Féin Education Minister imposed a similar measure on prep schools in Northern Ireland, with the end result that fees rose by about 20%. The impact on families was that schools became unaffordable; some schools became unsustainable. The unintended consequence was that instead of parents paying 70% of the cost of their children’s education, the state was left to pay 100%. Some 15 years on, the number of prep schools in Northern Ireland has decreased by one-third as a result of these changes and the number of pupils attending those prep schools has declined by 40%. In pure financial terms, for every pound that was saved by the state, £2.30 has had to be spent in additional educational expenditure.

The real victims of this are not the very rich. They will survive all this raft of measures. The people who will really suffer are medium and small farmers, consumers, employees and many pensioners. I simply urge the Government to think again, look at the unintended consequences of this and, even at this eleventh hour, do a U-turn on this raft of deeply damaging proposals.

Protocol on Ireland/Northern Ireland: Follow-up Report (European Affairs Committee)

Lord Weir of Ballyholme Excerpts

Monday 11th September 2023 Grand Committee

[Lord Weir of Ballyholme (DUP)]

My Lords, I join others in commending the noble Lord and the committee for a thorough, fair and balanced report. Its conclusions do not surprise me. Along with the noble Baroness, Lady Foster, I served on the DUP panel examining the Windsor Framework and receiving a wide range of evidence from stakeholders, which is largely reflected in this report. Some highlighted that burdens had been eased and improvements made. I perfectly accept that, although as a unionist it sticks in the craw that, even when we see improvements, such as on family-to-family parcels or medicines, that is through the prism of what we are being granted, in Northern Ireland in particular and the UK in general, as effectively grace and favour from the European Union. We are told what we are permitted to do within the United Kingdom.

Leaving aside that major constitutional problem, the report strongly highlights a range of practical issues and concerns from businesses with real issues on the ground. They have highlighted a lack of clarity from government. In particular, the haulage industry is concerned that the Windsor Framework has made things worse than before. Sadly, the Government’s approach to this issue has too often been characterised by obfuscation, confusion, ambiguity and spin. Two key, telling themes of the report are that a number of recommendations seek clarity from the Government on what further steps need to happen and the somewhat divergent positions between what the UK Government and the EU say which creates a major problem.

I turn to what needs to happen for a way forward. In simple terms, we need to see the constitutional position of Northern Ireland restored and the effective removal of the sea border for Northern Ireland’s internal trade. That means strengthening the internal market to ensure that goods can flow well in both directions and addressing some of the very real concerns about the green lane, such that it is not prohibitive to small companies and does not become, as described by one witness, an express red lane. We also need to see a range of unresolved issues tackled, be they veterinary medicine or horticulture, and real democratic accountability. The Stormont brake falls well short of giving genuine say.

We need to see substance rather than spin. Had the Prime Minister delivered everything he said in February, we would probably not be that far off the mark, but, unfortunately, we have had platitudes rather than substance. We do not need a perishable product that looks very good and tastes brilliant on day one, is probably okay a week down the line, but is very quickly of no use. We need something durable and comprehensive. That is the real concern that needs to be addressed and met if we are to find a way forward.