Family Businesses

Debate between Bradley Thomas and Robbie Moore

Wednesday 26th February 2025 Commons Chamber

[Bradley Thomas]

Does my hon. Friend agree that what we are discussing demonstrates quite a perverse contradiction, in that the sums are huge for the businesses involved—as he describes, they are catastrophic—but the overall net receipt to the Exchequer in the grand scheme of the Government Budget is so small, and that that is further testament to the Government’s lack of economic and political nous?

[Robbie Moore]

Absolutely. My hon. Friend makes the excellent point that the likely revenue—albeit I challenge the Treasury’s figures—is only £500 million, yet the impact that it will have on many of our family businesses is catastrophic. That includes those in the hospitality sector, and manufacturing, engineering and tech-based businesses in my constituency. Ultimately, the Government need to listen to the concerns being raised about business property relief, because it will undermines the stability and growth of the many family businesses owned by our constituents. The Government need to rethink the policy and axe it, which is what we are calling for. The Conservatives have been very clear that not only will we reverse the changes to agricultural property relief, but we will put back 100% business property relief, providing certainty for many family businesses.

Many other challenges have been brought about by the Budget. The increase in employer national insurance is impacting many family businesses, not least Hi Energy, a gym in Keighley in my constituency, which openly tells me it has calculated that its employer national insurance bill, coupled with the challenges of its business rates bill, which is likely to increase down the line, will have catastrophic consequences. Its overheads will increase, but it will not be able to increase its gym membership fees while keeping the business competitive among the many other gym organisations across Keighley. The same narrative is reiterated by all our family businesses.

For family businesses, the Budget was yet another instance of the Labour Government saying one thing but doing another. They claim to be pro-growth, yet they directly tax employment. They claim to be pro-business, but they tax wealth creators and family firms. Growth cannot be magicked up out of thin air, as the Government stipulate. The Conservative party is on the side of family businesses and I am pleased to support the motion today.