(1 week ago)
Commons Chamber
Anna Gelderd (South East Cornwall) (Lab)
Meur ras, Madam Deputy Speaker. I am pleased to have secured a debate on this issue, which I have campaigned on consistently since becoming the Member of Parliament for South East Cornwall, and which has existed for many years before my time in this House. It is an issue that I hear about daily because of its impact on almost every aspect of local life. I want to thank local residents, community groups—including the Tamar Toll action group and Safe38—previous MPs, local councillors and Tamar Crossings for their efforts to improve our local transport connectivity.
South East Cornwall is a place that bridges the old and the new. Our communities continue to bring life to historic fishing villages and welcome thousands of tourists annually, while also looking to the future, with advanced defence capabilities, artificial intelligence and digital industries, and world-leading regenerative agriculture. To fully play our part in the next decade of national renewal, we must bridge the gap, both physically and metaphorically, between Cornwall and the rest of the country. That includes the seamless integration of my communities with the new Plymouth defence deal in order to unlock opportunity in one of the poorest areas in western Europe and ensure that South East Cornwall is fully connected to the growth, security and prosperity that the deal will bring.
At its heart, this issue is about how we connect to places and services, how communities function, and how nationally significant infrastructure is sustained. It raises a fundamental question about whether our current connectivity policies reflect the lived reality in rural and coastal areas like mine and whether historical funding models still work in a modern economy.
Ben Maguire (North Cornwall) (LD)
Does the hon. Member agree that a real devolution deal, similar to those enjoyed by our Celtic cousins, must include a roads budget that is equivalent to the Cornish proportion of the strategic road network? Equating to around £95 million a year, it could easily make the Tamar toll free, at around £15 million a year, and leave further funds for urgent upgrades such as the A38 in her constituency, a Camelford relief road and—
Order. Interventions must be brief, but as it is so long before 10 pm, Members could make a speech if they so wish.
Ben Maguire (North Cornwall) (LD)
I take up your kind invitation to make a short speech, Madam Deputy Speaker. I thank the hon. Member for South East Cornwall (Anna Gelderd) for making an excellent speech and raising this important issue.
I want to make a few brief points, particularly while we have the Roads Minister here. The national focus in recent times has been on train connectivity in the north, so I am pleased to see Cornwall, Devon and the wider south-west getting a proper share of the debate this evening. One point I want to make while the Minister is here is that National Highways does not currently contribute any maintenance moneys to the Tamar bridge, despite the fact that the bridge is a critical part of its roads network. I understand that it recently cost as much as £6 million to resurface the bridge, because the method used is complex, but not a penny spent was from National Highways; it used the tolls generated.
Noah Law
The hon. Member makes an important point about the lack of National Highways funding for the bridge, but does he share my delight at the £220 million investment coming into Cornwall’s roads from national Government? We are seeing record-breaking investment in our roads, but that is not to detract from the point he makes about the lack of funding for the Tamar bridge.
Ben Maguire
I thank the hon. Gentleman for his intervention, and hopefully he and I can make the argument to the Minister and her colleagues that some of that money should go to the Tamar bridge.
There are certainly other road projects across Cornwall. The hon. Member for South East Cornwall spoke passionately about the A38, which my constituents frequently raise with me, and hopefully that is another project that can be funded from the large amount of money we are hearing is coming to Cornwall’s road network. There are also much-needed safety upgrades at Plusha in my constituency. I have met the Minister on numerous occasions, so I know she is aware of the upgrades to the Camelford relief road, which have been promised for many years.
As I have mentioned, I really hope that a devolution deal will now be forthcoming in which we see the equivalent of the Cornish proportion of the strategic road network, which is around £96 million a year. This evening, we have talked about making the Tamar toll crossing cheaper for local residents, or potentially removing the toll altogether at a cost of around £15 million a year. In their devolution deals, our Celtic cousins enjoy a budget equivalent to the amount of the road network they have in their nations, and that would leave plenty of money left over for the A30 upgrade that the hon. Member for South East Cornwall mentioned, and for lots of other upgrades across Cornwall.
Anna Gelderd
I thank the hon. Member for making that point. It is important to recognise that the future costs of these projects in Cornwall include maintenance, electrification and lots of other elements. That means we must work together with concrete resources to make sure that cheaper tolls are delivered for local people.
Ben Maguire
I absolutely agree with the hon. Member.
Finally, my Launceston constituents in North Cornwall frequently use the Tamar bridge crossing, on which they rely to access healthcare at Derriford hospital in Plymouth, so they absolutely have to make that journey. It is not a shopping trip or a leisure trip; they really need to make that journey. It takes around two hours by public transport to get to the hospital, and it takes almost one hour to get there by car, which is still quite staggering. On top of the fuel costs and the costs of running a car, they have to pay this £3 charge, and that is before we get to the extortionate cost of the hospital car park once they arrive. I urge the Minister to factor that into the Department’s thinking, because this is not just about leisure trips. We are talking about vital healthcare.
I thank my hon. Friend for his intervention. I will make a diversion to the south-east of England to say that the Government are committed to delivering the lower Thames crossing, which is the most significant road-building scheme in a generation. It will provide access to more than 400,000 jobs within an hour’s commute of local communities, and of course it will ease congestion at the Dartford crossing. Although the charging regime for the lower Thames crossing has not been set, like other crossings in England, such as the Dartford crossing, it will have a charge applied in order to cover the cost of providing the infrastructure, and the development consent order made clear that it is our intention that both tolls will be equal when the lower Thames crossing opens.
Turning back to the south-west, a question was raised about the role of National Highways. The A38 on either side of the Tamar bridge is the responsibility of National Highways as part of the strategic road network, but the bridge itself is not. However, while the Tamar crossings themselves are not the responsibility of National Highways, it does make an operational contribution each year towards the Saltash tunnel tidal flow system, which is monitored by the board that manages the bridge and the ferry.
We saw the completion of the essential major road network scheme in Cornwall linking St Austell to the A30 last July and look forward to progression of the Manadon interchange scheme in Plymouth, which will benefit so many people using the road network. The Government are committed to supporting local authorities in maintaining and renewing the local highway network, which is why by 2029-30 we will commit over £2 billion annually for local authorities to repair and renew their roads and fix potholes, doubling the funding since we came into office.
Ben Maguire
I humbly ask the Minister to write to the Cornish MPs so we can see what proportion of that £2 billion—I think she said by 2030—might come to our region. Perhaps then we can see how it might contribute to reducing, or maybe even removing, the tolls on the bridge.
The hon. Gentleman will be delighted to hear that Cornwall will benefit from up to £221 million of that £2 billion over the next four years, alongside over £24 million of local transport grant capital for maintenance and enhancements.
Of course we do not just need better roads; better links through high-quality public transport are also essential. People have a right to expect cohesive, reliable bus networks, enabling them to travel easily and comfortably to get to work, to school, to social clubs, to shops, and to see friends and family, and of course to visit hospitals and other health facilities, as a number of colleagues have mentioned.
As my hon. Friend the Member for South East Cornwall said, under the previous Government many thousands of bus services were lost, leaving communities cut off and reducing people’s opportunities for travel and all that that means. That is why, despite the challenging financial position this Government inherited, we are investing over £3 billion for the rest of the spending review period to support local leaders and bus operators across the country to improve bus services for millions of passengers, including those living in rural areas. This is additional funding to the more than £1 billion we are already providing this financial year. We are also giving the certainty that local authorities and bus operators need to build their networks longer term through multi-year allocations under the local authority bus grant, totalling nearly £700 million per year. That puts an end to the previous short-term approach to bus funding, enabling councils to plan their spending more strategically, ensuring that outcomes for passengers are always the top priority.
Cornwall council will receive over £30 million of this funding from 2026-27 to 2028-29, in addition to the £10.6 million it is receiving this financial year. On top of that, we continue to see the benefits yielded by our decision to extend the £3 national bus fare cap until March 2027, making bus journeys consistently more affordable for passengers. As my hon. Friend has said, in many of these areas people have low incomes, and that is why it is so important that we are cutting the cost of bus travel.
Additionally, we are funding bus franchising pilots to test the viability of different franchising models so that we can understand how these can deliver better bus services, including in rural locations. That includes a pilot in Cornwall, and I await the results with interest.
Active travel infrastructure to improve walking, wheeling and cycling routes remains essential. Following on from almost £300 million that the Government provided for active travel schemes up to 2026, we announced an additional £626 million for such infrastructure in a four-year settlement to help local authorities further improve active travel facilities and support network planning. Cornwall council will benefit from over £4.5 million of this funding.
Connectivity through reliable rail services is equally important, and I acknowledge hon. Members’ concerns about resilience on the rail line in Cornwall and Devon, particularly given the recent adverse weather. Network Rail is responsible for maintaining the railway network and has established processes in place for ensuring that it is safe to use when incidents happen. It continues to work closely with rail operators to help affected passengers and restore services as quickly as possible.
We announced in the November Budget that for regulated fares rail, passengers will not be faced with the increased cost in rail journeys that they have become accustomed to year on year. We are freezing regulated rail fares until March 2027 for the first time in 30 years. Meanwhile, 26 class 175 trains are being introduced on to Great Western Railway routes in Devon and Cornwall during this year. They will replace older diesel units, improve capacity and reliability, and free up rolling stock for wider use across the south-west, providing resilience across the network. The introduction of these trains on the Newquay branch line is part of mid Cornwall metro, doubling the frequency of trains on this branch and connecting rural communities to employment and education in Truro and Falmouth. As part of our commitment to improving digital technology for passengers, we secured funding to fit all mainline trains with low-earth orbit satellite technology to upgrade on train wi-fi.
My hon. Friend rightly brought to my attention in recent correspondence road safety issues—in particular, the need to reduce speeding in rural areas. The Government recently released the first road safety strategy in more than a decade, setting out our vision for a safer future on our roads for all. This strategy sets an ambitious target to reduce the number of people killed or seriously injured on British roads by 65% by 2035, with measures to protect vulnerable road users, updated vehicle safety technologies and a review of motoring offences. I know that these are particular concerns in rural areas, which are disproportionately places where fatal collisions occur.
In overarching support for delivering everything I have mentioned today, and to gain and maintain momentum in driving forward better transport for everyone, our forthcoming integrated national transport strategy has been informed by extensive engagement with the public and our stakeholders. It will set out this Government’s vision of putting people at the heart of everything we do, better connecting places and working in partnership with local leaders and experts to deliver. It will help drive improvements in the experience for all users of the transport system and empower local leaders to deliver good transport that is right for their communities—place is at the heart of our strategies.
I would like to turn now to tolls and, in particular, the Tamar bridge and Torpoint ferry, which I will refer to as the Tamar crossings, as these are tied together under the Tamar Bridge Act 1957. I thank my hon. Friend the Member for South East Cornwall for continuing to support local people who have understandably expressed concerns about increasing toll charges and network congestion, as many of them pay these charges to access essential services, which can be a financial burden. I recognise that the Tamar crossings are a very important issue for her, her constituents and the constituents of my other hon. Friends here this evening.
As we have already heard, the Tamar crossings are jointly owned and operated by Cornwall council and Plymouth city council, and between them they carry 16 million vehicles on the bridge and 2 million on the ferries each year. The crossings are operated together as a joint service and funded by users through toll income. No funding is received from the owners of the crossings, and there is no specific central Government funding stream for the upkeep of tolled crossings such as Tamar. In fact, over 20 road and ferry crossings in England have tolls or charges, and it remains Government policy that river and estuarial crossings normally be funded by tolls, recognising the extra cost of their construction and maintenance, as well as the benefits for users in connecting places that would otherwise require lengthy journeys.
Although increases in toll charges are understandably disappointing for the public, they remain essential to ensure the long-term sustainability of the crossings’ operation, which itself is essential to secure strong regional connectivity. The Tamar crossings are not alone in this; tolls and charges have increased or been introduced in many places over the past 12 months, including across the Humber, Mersey, Thames and Tyne.
Raising tolls is not done lightly. Rigorous processes are in place for assessing proposed toll increases. Applications can be made by asset owners to the Secretary of State not less than 12 months from the date of the previous increase, or a refusal to approve an increase, and the proposed change must be advertised in the local media before public consultation. Where objections are received but not resolved, a public inquiry is arranged, after which the inspector in attendance submits their recommendation to the DFT for a decision.
Issues relating to the crossings, including the tolls, are determined locally by the Tamar bridge and Torpoint ferry joint committee, established by the 1957 Act. The joint committee’s view is that, owing to inflation and other issues, there is a need for additional income via the toll. Given the cost of living pressures for so many people, I recognise that this is challenging, but it is vital to the future of the crossings. My fellow Ministers and I welcome any suggestions from the joint committee for improving the operation of the bridge and ferry services, and I commend its ongoing work in developing and delivering the Tamar 2050 plan, which aims to provide users of the crossings with a more stable and certain future.
I know that the Tamar crossings will become even more essential following the announcement last September that Plymouth had been named as one of five key national defence growth areas in the UK defence industrial strategy. I hope that my hon. Friends the Members for South East Cornwall and for Plymouth Moor View (Fred Thomas), in particular, welcome the fact that DFT officials are working collaboratively with the councils of Plymouth, Devon and Cornwall, alongside National Highways, Network Rail, Peninsula Transport—the sub-national transport body—and many others, to ensure that transport challenges in the south-west, including those concerning the Tamar crossings, are identified and addressed over the coming years through a joined-up approach, which I support and welcome enormously. I am sure that colleagues will have heard the call for more cross-Government working on these issues, and I hope that my remarks today will assure them that it is happening.
I will close by sincerely thanking my hon. Friend for securing this debate and allowing me to address the House on such important issues for communities in South East Cornwall and, indeed, across the country more widely. I wish to reassure the House that this Government are providing record levels of investment in roads, rail, buses and active travel projects across the country to connect people to jobs, education and opportunities. We will continue to drive forward improvements in transport, demonstrated by our multi-year investment to help support economic growth and our wider plan for change. I look forward to working closely with my hon. Friends in delivering our integrated national transport strategy, and to continuing to make transport provision better for everyone, right across the country.
Question put and agreed to.
(4 weeks ago)
Commons Chamber
Dan Tomlinson
There were some forensic questions in that not brief intervention, but of course I appreciate it, and I look forward to trying to go through—[Interruption.] I am trying to answer the questions, okay? [Interruption.] It is a bit difficult when Opposition Front Benchers continue to barrack me while I am trying to answer the questions that a Back-Bencher has asked. If the right hon. Member for Louth and Horncastle (Victoria Atkins) wishes to continue to hector me from a sedentary position, she may, but we will not have any time for me to answer questions.
On the points raised by the hon. Member for Keighley and Ilkley (Robbie Moore)—let me dial down the temperature; congratulations for getting to me—and on how the spousal transfer is used in the inheritance tax system, we are replicating that in the treatment of the spousal transfer for APR and BPR. That is the way the transfer is set out in the inheritance tax system. We are not doing anything different or novel here. We just debated the thresholds, which will be set at current levels and will not be uprated in line with the changes that we are making to other taxes. The hon. Gentleman also asked about interest. As I said, where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, if they like, and that will be interest-free. I have been through the numbers. Only 185 additional estates claiming APR are expected to pay more in 2026.
To conclude, the reforms get the balance right between supporting farms and businesses, fixing the public finances, and funding our public services.
Ben Maguire (North Cornwall) (LD)
I would like to pick up on the point raised by the hon. Member for Keighley and Ilkley (Robbie Moore) about the ludicrous situation where a farm that is worth £5 million if it is owned under a certain ownership model will not be subject to tax, but a farm worth less than that could be subject to tax. Graham, a farmer from my constituency, visited my surgery on Friday. He is in that exact situation. He is a sole trader slightly over the £2.5 million mark. We ended up discussing for more than 10 minutes whether he should marry his long-term partner to get away from this tax. Does that not illustrate just how ludicrous the situation is, Minister?
Dan Tomlinson
This is the normal way that inheritance tax assets are taxed. There is not just APR and BPR, and the changes coming in in April; other assets are passed on through inheritance. We are applying the same treatment here; this is the standard way that inheritance tax is set for various assets.
As I was saying, these reforms get the balance right between supporting farms and businesses, fixing the public finances and funding public services. They reduce the inheritance tax advantages available to some owners of agricultural and business assets, but those assets will still be taxed at a much lower effective rate than most other assets—a £6 million estate owned by a couple, for example, could have an effective tax rate of just 1.2%, which can be paid, interest-free, over 10 years.
Those opposing these reforms in full will be voting for a status quo in which the very largest estates pay a lower average effective inheritance tax rate than the smallest estates—a status quo where the Exchequer sees £219 million in tax relieved from just 117 estates claiming APR, and £558 million in tax relieved from just 158 estates claiming BPR. That is not sustainable, and it is certainly not fair. I therefore commend clause 62, schedule 12 and Government amendments 24 to 29 to the Committee.
Ben Maguire
I would like to slightly correct the record there. We are having a technical debate about who opposed the tax first. I remind the Committee that it was the Conservative party that negotiated those disastrous New Zealand and Australian trade deals that decimated farming in my North Cornwall constituency.
Charlie Maynard
I thank my hon. Friend. [Interruption.] Would you like to intervene?
(1 month ago)
Commons ChamberI thank my hon. Friend for his support. Clearly, local authorities can and should draw on historical collision data when assessing road safety measures, but proactive measures to reduce risks should not be contingent on a fatal or serious incident occurring. Local authorities have the power and the funding to carry out interventions, so it is vital that they listen to the concerns of local people and act to prevent serious incidents before they occur, rather than just responding to them afterwards.
Ben Maguire (North Cornwall) (LD)
Ryan Saltern was hit and left for dead by a drunk driver in 2019. The perpetrator received a four-month suspended sentence. In 2021, Ryan’s family launched their Ryan’s law campaign to increase sentences for hit-and-run offences, and in October I introduced a Ryan’s law amendment to the Sentencing Bill. We all know that there can be lots of talk in this place, but not always much action. Last year, I met the road safety Minister with the family; she clearly listened and has now acted, and I thank her. I pay tribute to my incredible North Cornwall constituents Mark and Helen, Ryan’s parents, and Leanne, his sister, for never giving up—they are a true inspiration. Once the consultation closes, how long will it take the Minister to bring draft legislation to the House?
I thank the hon. Member for the work that he has done to support the Saltern family. It was humbling to meet Mark, Helen and Leanne, and to hear about their work supporting other victims of road traffic collisions. As he knows, we are consulting on strengthening the law around those who fail to stop and report a collision. What happened to Ryan is tragic and I am keen that we act as quickly as possible. Where legislation is required, we will have to wait until parliamentary time is available, but I am determined to act.
(1 month ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Ben Maguire (North Cornwall) (LD)
I congratulate my hon. Friend the Member for North Devon (Ian Roome) on securing this important debate. Constituencies like mine, which borders my hon. Friend’s constituency, are among the most rural in this country.
My constituents rely on their cars to cover vast areas to get to work, to take their children to school and to attend vital healthcare appointments, and they quite literally pay the price when it comes to the cost of fuel. People living in rural areas such as North Cornwall spend, on average, £800 a year more in fuel costs than those living in urban centres. These people make about 75% of their journeys by car. In Cornwall, about four times fewer people than in the rest of England are able to travel to work via public transport. Fuel can in some cases be 10% to 15% more expensive at the pump in Cornwall, compared with other areas. If we extrapolate that across a full year or several years, adding in our increased reliance on our cars, my North Cornwall constituents end up facing astronomical costs, at a time when money is extremely tight.
Under Liberal Democrat proposals, we would double the number of areas covered by the rural fuel duty relief scheme to include places, such as Cornwall, that are in dire need of respite in the face of these extremely high fuel prices. The Government, in the recent Bus Services Act 2025, missed a clear opportunity to ensure that vital healthcare routes have statutory protection, as schools and other education routes do, to ensure proper access to healthcare in Cornwall’s hospitals and GP surgeries.
I have just got off the phone to Go Cornwall Bus, which explained to me once again that this Government are not providing enough bus funding. The logical conclusion is that we have to use our cars for essential trips such as for healthcare. These are not leisure trips; they are essential. My constituents have no other options. They are forced to drive for hours to access hospital and GP appointments in north Devon, Truro, Derriford and elsewhere.
Additionally, we would introduce an official, Government-funded pumpwatch scheme, which my hon. Friend the Member for Newton Abbot (Martin Wrigley) mentioned. That would allow Cornwall’s commuters to compare fuel prices at nearby petrol stations to prevent them from being ripped off. As we have heard from so many Members, prices vary across the country and sometimes within the same region. Northern Ireland already has a comparison scheme in place and, as a result, benefits from some of the lowest fuel prices in the country, as my hon. Friend the Member for Inverness, Skye and West Ross-shire (Mr MacDonald) said.
Will the Minister kindly confirm whether he and the Government will adopt our proposals to double the number of areas included in the rural fuel duty relief scheme and launch an official pumpwatch programme? Please, Minister, give those proposals the consideration they deserve.
(1 month, 3 weeks ago)
Commons Chamber
Adam Thompson
In the interests of time, I will not give way again.
These are income streams that are overwhelmingly enjoyed by the highest earners, and it is, by and large, the already well-off who will pay more under the Bill. Its provisions include changes to national insurance relief on pension contributions through salary sacrifice schemes—again, a mechanism primarily used by the highest earners. They include reforming council tax, so that someone living in a £10 million mansion in central London does not pay less council tax than a terraced house owner in Ilkeston and Long Eaton. They include a new surcharge on homes worth more than £2 million, which will be paid by fewer than 1% of homeowners. This Budget was for working families, for the everyman and the everywoman, for children and for young people. It was not a Budget for millionaires, billionaires, slum landlords, investment bankers, or the bosses of big corporations.
Absolutely. All I advocate, as I am sure my right hon. Friend does, is that this Government simply engage with and listen to our farming community. It is not just our farming community that is hit by the IHT changes; it is family businesses more widely.
Ben Maguire
I want to point out the case of a North Cornwall farmer called Will Harris, who gave up an engineering job at £60,000 a year to provide food security and put food on our tables. His income is about £30,000 a year, but the tax his children may have to pay would be £500,000—or £50,000 a year, which is almost double the farm income. He is terrified and can hardly sleep at night for thinking, if something happens to him, what will happen to his teenage children and their farm.
The hon. Member makes an excellent point, and not only Cornish farmers, but those right across the country are being impacted by this Government’s decisions. He also makes the excellent point that many of our farming businesses are incredibly highly geared, given the level of debt associated with their businesses, and are not returning a level of income to even contribute towards paying an IHT liability at 20% over and above the £1 million threshold. They will therefore be subject to a death tax that they will simply be unable to pay.
(3 months ago)
Commons Chamber
Ben Maguire (North Cornwall) (LD)
The Exchequer Secretary to the Treasury (Dan Tomlinson)
Ministers from Government Departments have met organisations including the National Farmers’ Union, the Tenant Farmers Association, the Country Land and Business Association, the Central Association of Agricultural Valuers, the Ulster Farmers’ Union, and the NFU in Scotland and Wales. I also met farmers in the north-east of England only last month. After listening and considering the independent Centre for the Analysis of Taxation report, the Government believe that the approach we have set out is an appropriate one.
Dan Tomlinson
Just a few weeks ago, I met farmers to discuss this and other important issues. The Government believe that even though this tax is a difficult change—I do not shy away from that fact—it is the right change to make, because it is a method of raising revenue in a fair way that helps contribute to restoring the public finances.
Ben Maguire
I kindly ask the Chancellor to please respond to my joint letter on Cornwall’s future funding, sent last week, which asks her to meet all Cornish MPs without delay. Alternative proposals to this damaging family farm tax—such as a clawback scheme, as proposed by the NFU, or increasing the threshold to £5 million—would raise more in revenue than the Government’s current plans. In contrast to her speech this morning, the Chancellor now has the opportunity to do both the right thing and the popular thing. The mental health toll on farmers is becoming completely unsustainable, so please, Chancellor, rethink this damaging policy.
Dan Tomlinson
I would be happy to meet the hon. Member and Members from across Cornwall to discuss the issues raised in the letter to the Chancellor.
(11 months, 4 weeks ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
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.
I do not think I can listen to many more people say that. When I questioned the Prime Minister at the Liaison Committee before Christmas, he specifically said that what rich people do with their money within the rules was a matter for them, and that the policy did not have a target audience. Does that not point to an inconsistency in messaging among the Treasury and Downing Street?
Ben Maguire
As always, my right hon. Friend makes a very good point. I urge the Minister to look for alternatives. We have heard about the Liberal Democrats’ proposal for a working farm test. Other hon. Members have suggested some kind of clawback scheme in cases in which the farm is sold within, say, 10 years of inheriting it.
I will draw my remarks to a close, because I know that other hon. Members want to come in. This family farm tax will raise around £500 million a year—not an insignificant sum—but is it a price worth paying to kill farming in this country and, crucially, risk our food security? The Liberal Democrats have proposed restoring the cut that the Conservative party made to the big bank levy in 2016. That would have raised around £4 billion a year, which certainly puts this family farm tax into perspective.
(1 year, 2 months ago)
Commons ChamberI am going to crack on now and not take any more interventions because, with help from Members on either side, I have already taken up nine minutes of this place’s time.
I want to give the House a final run-through of some of the consequences of the terrible failure of the Conservative Government on farming. In the last five years alone, livestock farm incomes have dropped by 41%. Year on year, there has been a drop in sheep numbers of over 4%, and a 6% annual drop in the number of dairy farms. We lost 440 dairy farms last year alone. So that is where we are, and that is before we get into trade deals or the attack on rural services, healthcare and dentistry. I am also going to quickly make a reference to Brexit because, without a doubt, our leaving the European Union and the terrible deal that the Conservative Government signed us up to have had the biggest impact of all on agriculture.
Madam Deputy Speaker, you would think that the new Labour Government had a massive open goal in front of them, given what they inherited from the Conservatives. They had a massive open goal, with no goalkeeper between the posts, but somehow the ball ended up in row Z. I find it almost impossible to countenance how they have managed to fluff that opportunity.
I want to talk about two people in my constituency who gave me a really useful insight into the family farm tax in the last couple of days. Both of them gave me four separate case studies. The first was a land adviser who talked to me about four farms. Their story was about shrinking businesses as a result of the family farm tax, and about the potential reduction in the value of land, which would mean that they would not be able to invest in their businesses and there would not be the tax yield that the Government were banking on. Another, a local accountant, gave me four anonymised case studies of local family farms in my communities. Of those family farms, only one was earning above the minimum wage, and three were earning significantly below the minimum wage. In those four cases, two would have to sell parts of their farm and two would have to sell their entire farm to pay the inheritance tax.
The next question is: who would those farms be sold to? The hon. Member for Shipley (Anna Dixon) spoke a moment or two ago about the proportion of farmland being sold into private hands, into private equity and so on. Farms will go into those hands even more—as if a neighbouring farmer is going to buy that land when they are in the same predicament.
We are seeing hard-working farmers, on less than the minimum wage, having to sell off their land to private equity. Is that a very Labour thing to do? The hon. Member for Perth and Kinross-shire (Pete Wishart) spoke about Labour not getting the working class in the countryside, and this is a perfect example. It is not too late for Labour to learn.
Ben Maguire (North Cornwall) (LD)
It seems clear that, as with the winter fuel allowance changes, the Government have missed their target here. As my hon. Friend rightly says, it seems obvious that large landowners will have the ways and means to avoid this tax. Does he agree that there should be some form of working farm test?
Yes, and the Government should have been thinking about these things. We heard from the Minister that lots of planning and diligence went into this before it came out of the Chancellor’s mouth on Budget day, but it does not feel like it, because there is a whole range of issues that could have been considered in advance.
There is something that will do more immediate harm to farming than even the inheritance tax changes, and that is the Government’s decision to summarily reduce basic payments by 76% in a single year. This will have a direct impact, in particular, on tenant farmers who rely on that money and will end up missing their rent payments. We will see evictions as a consequence.
The Government have trumpeted the £5 billion over two years, which my basic maths tells me is £2.5 billion a year. I am always careful, or nervous, about making confident predictions, particularly in this place, but my confident prediction is that they will not spend that budget. If the basic payments are cut by 76% without the new schemes being up and running to replace them, the Government will not spend that money. By underspending, this Government will end up in the same mess as the last one.
(1 year, 3 months ago)
Commons ChamberThe Government recognise the significant pressures that all councils are facing. We are looking at consolidating funding streams for local authorities into the local government finance settlement, and we will work towards implementing our commitment to a multi-year financial settlement.
Ben Maguire (North Cornwall) (LD)
I thank the hon. Gentleman for his question. This is an issue that resonates right across the House, with so many of us hearing terrible stories at our surgeries about the lack of support for some of the most vulnerable children in society. I know that it is a priority for the Education Secretary too, and we will set out more detail on departmental settlements in the Budget tomorrow.
(1 year, 4 months ago)
Commons Chamber
Ellie Chowns (North Herefordshire) (Green)
Fuel poverty is an enormous issue in my constituency due to a combination of demographics, geography, the housing stock and, indeed, living standards. I rise to speak on behalf of the many hundreds of my constituents who have written to me to express their deep concern about the Government’s policy. I do not have time to read out extracts from their very moving emails, but I know that Judy, Kenneth, Pat, Tom, Robert and Gwen are all deeply concerned about the impact that it will have. They have reported their health issues, their partners’ disabilities, and the fact that they are just over the limit and will not be able to access the winter fuel payment. That will force them into the classic, depressing choice between heating and eating that this country must avoid.
I have voted against the Government’s policy today for three reasons. First, it is socially regressive and will increase poverty among about 2 million people, nearly 1 million of whom ought to be getting pension credit. The Labour party’s efforts are nowhere near fast enough to avoid increased poverty this winter.
Secondly, the policy is economically innumerate. It will not save the money that the Government argue it will save. There are far better ways to save that money, and to fund the action that is certainly needed to support our public services.
Thirdly, the policy is, frankly, politically inept. I really cannot believe that this Government have spent political capital on making such an unfortunate and unjustifiable political decision.
The winter fuel payment is not, and never was, a perfect policy. I have some sympathy with Members who have spoken today about the inequity of the inclusion error, whereby those who have significant wealth were still receiving the payment, but that has been replaced by a policy with an enormous and dangerous error of exclusion for those 2 million people who will no longer get the support that they need.
Ben Maguire (North Cornwall) (LD)
Of course millionaires do not need the winter fuel payment, but does the hon. Member agree that there must be support for pensioners who really need it, rather than this cruel cliff edge, especially for those living in rural areas such as my constituency who are not connected to the mains gas grid?
Mid Norfolk is a profoundly rural constituency, with 130 villages and four towns, and in that very rural constituency, as with all rural areas in this country, people are paying a surcharge because of energy costs and because of rurality. There will be colder weather, and many of my houses are not on the gas grid, while rural areas traditionally have lower incomes and we have an elderly population.
The Treasury, very helpfully—it is a shame Ministers did not read it—did a piece of work last year looking at the risks of rural poverty and the higher risk of rural areas falling into real poverty. The Treasury’s own figures showed that the average household at risk of poverty in rural areas needs an extra £800; or in layman’s terms, there is a two and a half times—or 250%—higher risk of rural houses falling into rural poverty. So I find it completely extraordinary that Labour, which in government professes to care about poverty and berated my party when in government about the risks of rural poverty and of pensioner poverty, has decided as their first act to punish people in rural areas.
It is because of those rural risks that, earlier this year, I and a number of colleagues set up a fair funding alliance, supported by Action with Communities in Rural England, the Countryside Alliance and rural bodies. Higher fuel and energy prices are hitting rural areas, and we would have hoped that this Government might have listened. I am proud that the Conservative party in government upgraded pensions, protected the triple lock and took 200,000 pensioners out of poverty.
Ben Maguire
The former Member for Thornbury and Yate introduced the triple lock, which was actually a Liberal Democrat policy. Would the hon. Member care to correct the record on that point?
It was my good friend the now noble Lord Willetts in a coalition Government with the Liberal Democrats, and I will happily debate with the hon. Member some of the brave decisions we took.
The point is that this party, the Conservative party, protected pensioners, protected the triple lock and lifted 200,000 people out of poverty, but we see this Labour Government make this decision. The Minister put it very clearly earlier. This is an attack on people who own their own homes, people who have retired in rural areas and those just over the threshold, and in Labour world they are millionaires. This will not be forgotten by people in my constituency, the low-income rural pensioners who have saved up to be able to afford their own home and are now being clobbered. It is unfair, it is unjust, it is unjustifiable, it is unprecedented, and I urge and beg Ministers to think again.