Finance (No. 2) Bill

Adam Dance Excerpts

Committee of the whole House
Tuesday 13th January 2026 Commons Chamber

[Mr Paul Kohler (Wimbledon) (LD)]

The line about alcohol duty in clause 86 may look technical, and even innocuous, but outside the Chamber, in places such as my constituency of Wimbledon, it lands with a thud. Before I go further, I should declare an interest: I am the chair of the all-party parliamentary group for the night time economy and the owner of a speakeasy, CellarDoor, in Covent Garden. I have owned CellarDoor for nearly two decades—through the financial crisis, Brexit and covid—yet nothing compares to the crisis that hospitality is now facing.

One constituent, a Campaign for Real Ale supporter, wrote to me asking why pubs have been hit yet again through changes to business rates. Another told me that the rateable value of his small unit off Haydons Road in Wimbledon has risen from just over £15,000 to more than £22,000. Another constituent, who runs venues in London and Birmingham, thought the Budget would bring relief. Instead, he is facing sharp increases in operating costs in the years ahead. Admittedly, the Chancellor has belatedly indicated that she will offer some form of business rate relief to pubs, but what about the rest of hospitality—the restaurants, cafés, bars and music venues?

[Adam Dance (Yeovil) (LD)]

Gareth, who runs the Cow & Apple in Yeovil, has told me that he feels that the assessments and consultations on how the proposals in the Finance (No. 2) Bill will impact the viability of the rural hospitality sector were not good enough. Does my hon. Friend agree that that is why we need to pass the Liberal Democrats’ new clause 9, which calls for a review of the impact on the hospitality sector of these alcohol measures and broader Budget policies within six months?

[Mr Kohler]

Indeed I do. It is death by a thousand cuts. Those who run hospitality businesses have been hit by cost after cost after cost. The Government must listen.

Alcohol duty brought in about £12.5 billion in 2024-25. Hospitality, by contrast, contributed over £60 billion to the economy in 2023 and supported over 2.5 million jobs—over 7% of the workforce. Yet UKHospitality estimates that 89,000 jobs—nearly 100,000—were lost in the nine months after the October 2024 Budget. Official figures show that 366 pubs closed in the year to December 2025. That is one pub every single day. The roots of this crisis lie in years of Conservative mismanagement, Brexit labour shortages, a broken business rates system, energy price shocks, commodity price increases and a cost of living crisis. Many in the sector hoped that the change of Government would bring a change of direction, yet things have only got worse with the rise in employer national insurance contributions.

The cumulative effect is undeniable: rising costs for shorter opening hours and fewer staff. Offering us easier or longer opening hours does not help if we do not have customers coming through the door. Investment is deferred, and too often doors close for good. When that happens, high streets lose more than businesses; they lose employment, footfall and the social infrastructure on which communities depend. That is why the Lib Dems are calling for an emergency cut in VAT for hospitality to 15% until April 2027, real reform of business rates and a proper review of the unworkable wine duty system. Such measures would protect jobs, support high streets and, in time, strengthen the public finances rather than weaken them.

The hon. Member for Edinburgh South West (Dr Arthur), who is no longer in the Chamber, asked where the money will come from. We keep telling Labour: get rid of the red lines and negotiate a customs union with the EU, which would raise £25 billion a year for the Exchequer. Businesses in Wimbledon and across the country are not asking for our pity; they are asking for a tax system that reflects the pressures they actually face. If Ministers are serious about protecting jobs, strengthening high streets and growing the economy, they should reverse this tax increase and introduce an emergency VAT reduction for hospitality.

Spending Review 2025

Adam Dance Excerpts

Wednesday 11th June 2025 Commons Chamber

[Rachel Reeves]

Part of the investment in the north of England is for the trans-Pennine route upgrade, which my hon. Friend and I both welcome. The investments in health and education are important, but so too is supporting disabled people, which is why £1 billion has been set aside in the spending review to help get people back to work. Many disabled people are desperate to work, if the right support is available. Of course, the social security system and the welfare state must always be there for people who cannot work, and under this Labour Government they will be.

[Adam Dance (Yeovil) (LD)]

I heard very little about Somerset, which is facing huge pressure on GP practices, affordable homes, SEND provision, reliable bus services and access to affordable energy. Can the Chancellor promise my constituents that Yeovil will not be overlooked, and does she believe that the decisions announced today leave Somerset council and Government Departments with enough to properly invest in communities in Yeovil?

[Rachel Reeves]

Let me put that right: the people of Somerset will benefit from a 3% uplift in NHS spending; the people of Somerset will benefit from free school meals for their children if they are on universal credit; and the people of Somerset will benefit from stronger defences and stronger borders through the investment that we are making. This is a spending review for the whole country, including people in Yeovil in Somerset.

Inheritance Tax Relief: Farms

Adam Dance Excerpts

Monday 10th February 2025 Westminster Hall

[Ben Maguire (North Cornwall) (LD)]

It is a pleasure to serve under your chairship, Dr Murrison. I stand to speak on behalf of the 800 signatories of this petition from my constituency, and I also speak in this debate as chair of the all-party group on dairy. Almost all of the financial advice that farmers had sought until the Budget had included APR relief in their financial planning and how they would pass on their family farms to the next generation without this ill-thought-through tax. These changes will hit hundreds of family-run farms, many of which have been proudly looked after generation after generation by the same family. I must add that the mental health of my North Cornwall farmers has plummeted since this was introduced.

[Adam Dance (Yeovil) (LD)]

Farmers in my constituency have told me that the Government’s changes to agricultural property relief have damaged their mental health, and some of my constituents have taken their own life. Does my hon. Friend agree that, rather than worsening the mental health crisis in farming, the Government should address it by scrapping this family farm tax, investing properly in rural mental health services and establishing a national working group on suicide prevention, focusing on agricultural and veterinary occupations?

[Ben Maguire]

My hon. Friend will not be surprised to hear that I completely agree and wholeheartedly support those suggestions.

The changes have not even taken effect yet, but their harsh effects are already on show. If no full U-turn is on the horizon, surely we can urge the Minister, with one voice, to look for an alternative to this ill-thought-through tax. The change will not hit the wealthy investors that the Government have taken aim at.

Finance Bill

Adam Dance Excerpts

Committee of the whole House
Tuesday 10th December 2024 Commons Chamber

[Adrian Ramsay]

As we heard earlier, it is vital that there is strong Government support and a dedicated plan to ensure transition to alternative job opportunities for anyone working in the oil and gas sector. Having a background in the renewable energy sector, I strongly support Government incentives and policies that will help that sector to expand, so that we create jobs and skills. My amendments would reverse the Government’s tax relief on the conversion of oil and gas infrastructure to carbon capture and storage installations. There are many other reliefs in the tax regime that should be addressed, but they are out of the scope of the Bill.

Carbon capture and storage is a complex area. There are different types of technology that use different techniques. I support further research and development in relation to the hard-to-abate sector, but CCS cannot be used as a fig leaf to hide the expansion of fossil fuel operations. In reality, after years of hype, the result is very little carbon—less than 0.1% of annual emissions—being captured globally. Most of the carbon dioxide that has been successfully captured has been used to extract more oil. The UK has also been criticised for targeting most of its CCS at so-called blue hydrogen, the use of which would increase our long-term reliance on gas and generate more carbon emissions.

The proposed tax relief is too blunt an instrument to make a useful contribution to decarbonisation. The role of CCS is still relatively untested, so it is vital that we do not bake in over-reliance on that technology. Public funding for CCS should be restricted to research and development, and to projects that would clearly help to decarbonise hard-to-abate sectors. It absolutely must not be a green light for fossil fuel companies to carry on with business as usual and an expansion of operations. Will the Minister explore the idea of reviewing the measures, in the light of what I have suggested?

[Adam Dance (Yeovil) (LD)]

In October 2021, we Liberal Democrats were the first to call for a tax on oil and gas windfall profits, so I am glad that the Bill is finally scrapping the unfair investment allowance loophole, after years of oil and gas companies not paying their fair share under the Conservatives. I urge the House to adopt our amendment, which calls on the Government to set out exactly how much money is being raised through the scrapping of the investment allowance loophole, and how much money was gifted by the last Government to the oil and gas giants. My constituents in Yeovil deserve full transparency.

I encourage the Government to use the money raised by closing the loophole to address energy and environmental issues impacting my constituents in Yeovil, such as fuel poverty, particularly among pensioners; the need to protect homes and businesses from flooding; the need to support farmers with green investments; and helping homeowners to install clean heating.

In conclusion, we must ensure that our constituencies get a fair deal out of the Bill. If the average taxpayer is expected to pay their fair share, then so must the wealthiest individuals and companies in this country. There cannot be one rule for them and another for the rest of us.

National Insurance Contributions (Secondary Class 1 Contributions) Bill

Adam Dance Excerpts

2nd reading
Tuesday 3rd December 2024 Commons Chamber

[Adam Dance (Yeovil) (LD)]

I welcome some of the measures introduced in the Budget, such as more investment in the NHS to start repairing all the damage done to our local health services by the Conservatives. However, the increase to employer national insurance contributions is the wrong decision and will have a serious impact on key sectors and services across the country.

A few examples of such negative impacts stand out. First, on local authorities, I was glad to hear from Somerset council that it believes it will be fully compensated in the settlement for its share of the increase in employer national insurance contributions this year, but as the Minister knows, Somerset council works with care organisations and care homes to provide care for more than 5,000 people. As their share is not covered, those companies will need to increase their charges to Somerset council, impacting hugely on the council finances. Will the Minister commit to supporting the council with those extra costs?

Secondly, many community pharmacies that provide essential services in my constituency and across the country, affecting everyone, are struggling with existing financial pressures. The community pharmacy sector has faced a decade of funding cuts, and the NHS workload has increased. We have already lost 1,200 pharmacies from our communities since 2015. However, as independent contractors, pharmacies will not be exempt from the rise in national insurance. How does the Minister expect pharmacies to continue to support communities and the NHS when yet more pressure is being placed on them?

Finally, the Government have made funding and supporting access to nurseries a priority, which I welcome, but raising the national insurance rate for employers could worsen the shortfall of nursery funding, with parents having to pay. The Early Years Alliance said that 95% of childcare providers were set to increase fees, as the Government did not mitigate the national insurance contributions increase and the rise in the minimum wage. Will the Minister commit to supporting nurseries too?

In conclusion, raising national insurance is a tax on jobs that will deal a hammer blow to small businesses and struggling care providers. Should the Government not look to raise money by reversing the Conservatives’ tax cuts for big banks or by asking social media giants to pay their fair share, rather than burdening sectors that provide essential services to our communities?