National Insurance Contributions (Secondary Class 1 Contributions) Bill

Debate between Carla Lockhart and Sammy Wilson

Committee of the whole House & 3rd reading
Tuesday 17th December 2024 Commons Chamber

[Sammy Wilson]

The mentality is that with these national insurance increases we are imposing more taxes on small businesses and on all the sectors I have spoken about. I would ask the hon. Gentleman what spending decreases could have been looked at—have any productivity impositions been put on the public sector, for example? That should be the answer, rather than asking, “Who should we tax to pay for the black hole?” Instead, we should be asking how we can reduce and reprioritise the things that we do; looking at some of the things the Government do at present that they do not need to do, or that they could do better, or that they could save money on.

I listened with bemusement to the hon. Member for Dartford (Jim Dickson), who was relieved by a survey in The Guardian in which more than 50% of those surveyed were quite happy with this tax. If there are so many Guardian readers happy to pay more taxes, I am sure the Scottish National party would love them all to move to Scotland, because it might solve some of the problems they have. These are the kinds of strained arguments that we have had from Government Members.

They know the impacts the Bill will have. I am sure they are having the same conversations with their constituents as I have had with the people who have spoken to me in my constituency office—the small businesses, those in the hospitality industry, the GPs and those in the care sector and the charitable sector, who have come to me and told me the impact it will have on their organisation. I do not believe we can run away from this, despite what will happen when we vote later today.

I do not share the optimism of the right hon. Member for Beverley and Holderness (Graham Stuart) that somehow little cabals will form on the Government Benches—that they will all start whispering, and maybe 10 of them will go to see the Chief Whip, and then next week it will be 20, and then, by the time there are 50 of them going to see the Chief Whip, this will all change. I do not share that optimism. What I do hope, however, is that the predictions that have been made about the Bill will finally resonate with the Chancellor, and we will see a change in policy.

[Carla Lockhart]

In my constituency and that of my right hon. Friend, agrifood manufacturing is a big business base and a big sector. As he will know, many agrifood businesses are saying that these changes will increase their bill by £50,000, £60,000 or £100,000. On top of the death tax for family farms, that will absolutely decimate our agrifood sector. I urge the Government to pull back from this measure; otherwise, we will see the cornerstone of our economy destroyed.

[Sammy Wilson]

Of course, agrifood is another sector that I had not mentioned, along with hospitality, food processing, all the charitable sectors and some that are supporting the health industry—all are affected by it; they cannot escape it. I believe the impact will be far worse than what the Government are hoping for. Of course, as a result of the side effects of this measure, the revenue that is hoped for might not even be obtained.

Future of Farming

Debate between Carla Lockhart and Sammy Wilson

Wednesday 4th December 2024 Westminster Hall

[Carla Lockhart]

I could not agree more: the knock-on impact will be immense.

The Budget’s decision to cap full inheritance tax relief at £1 million, with a 20% charge above that, will devastate family farms. These changes know no boundaries and will affect countless small and modest family farm businesses. Independent analysis shows that up to 75,000 farming taxpayers will be impacted over a generation—five times the Government’s initial estimate. In Northern Ireland alone, the Department of Agriculture, Environment and Rural Affairs predicts that one third of farms and 75% of dairy farms will be hit the hardest. These figures are not plucked from the sky; these are real, evidenced figures from DAERA. Farmers face the grim prospect of selling off prime agricultural land, probably to big businesses that certainly do not want to use it for food production. This death tax will erode our food security and end future generational farming.

Three weeks ago, at the Eikon centre in Lisburn, I stood in front of 6,000 farmers who had braved Storm Bert to voice their concerns. Their message was clear: stop the family farm tax grab. The Government must listen. If they proceed with this policy, it will not only destroy an industry that feeds the nation, but tarnish their legacy, with the destruction of rural communities and livelihoods. When we are asked about this Government’s legacy thus far, sadly farmers and pensioners come to mind.

[Sammy Wilson (East Antrim) (DUP)]

Does my hon. Friend not find it really angering that the Government justify this policy by saying that a few big landowners buy up land as a way of escaping inheritance tax? Yet, the impact is not on the big landowners; it is on ordinary landowners, such as those she has described. The impact on the countryside will be enormous.

[Carla Lockhart]

My right hon. Friend is exactly right: big businesses will be the ones buying over the land, and they are not interested in farming it.

I respectfully ask the Minister to heed the voices of farmers, backed by detailed analysis from the Central Association for Agricultural Valuers and others. Farmers know their industry best. This policy must be revisited to ensure the sustainability of farming for generations to come. Let us act now to protect the custodians of our land, the economic drivers of our rural areas and the hand that feeds our nation.

Our farmers face relentless challenges, and the abolition of agricultural property relief is just the latest in a long list of blatant attacks. For too long farmers have been denigrated and subjected to some of the most draconian environmental restrictions. They are blamed for polluting waterways, while raw sewage goes unaddressed. Across all four nations, farmers are held back by planning restrictions over ammonia, making it nearly impossible to replace or upgrade sheds, despite these improvements benefiting the environment. Farmers face real threats from disease, including bluetongue, tuberculosis and bird flu, with little effective support. In Northern Ireland—this is a devolved issue, but the point is still important—herds of cattle are being slaughtered because of a lack of decisive action on TB, leaving farming families devastated and unsupported.