Farming and Inheritance Tax
Caroline Johnson Excerpts(2 weeks, 5 days ago)
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Victoria Atkins
It is a great pleasure to have the right hon. Gentleman not just as a friend but as my Lincolnshire neighbour. He has put his finger on the point—genuinely, it is the next paragraph in my speech.
Some Labour MPs must be haunted by the phrasing from the Secretary of State during the general election campaign—because I suspect that they repeated it up and down the market towns and villages in their constituencies—when he described fears that Labour would impose this family farm tax as “desperate nonsense”. Labour candidates will have repeated that line and assured the farming families in their constituencies that Labour would never treat rural communities in that way, yet within weeks the Chancellor was planning to do exactly that.
Since then, families across the country have been trying to work out how to pick up the pieces after Labour’s family farm tax bomb. They will not forget. A farmer from Derbyshire emailed me this week to say:
“Our hard work and investment as a family has been wiped away in the stroke of a pen.”
They went on to say:
“My 60 year old husband had a bleed on the brain in June and thankfully has made a full recovery but I’ve never seen him so stressed. He doesn’t know what to do”.
Hon. Members representing seats in Derbyshire may wish to reflect on how they will respond to that. A farmer from Northumberland has written to me as follows:
“We had to talk about which one of my parents are going to die first, in front of them.”
He said that Labour is
“destroying people’s lives with this policy. Many of us are worried about the mental state of many within agriculture and are concerned that it may be the final straw for some.”
In fairness, the hon. Member for Hexham (Joe Morris), who is in his place, has voiced concerns about whether his Government are listening to ordinary people about this. Will he vote for his farmers or will he toe the party line?
Dr Caroline Johnson (Sleaford and North Hykeham) (Con)
As a farmer’s wife, I understand the emotional impact that my right hon. Friend sets out so clearly. This is about not only the farmers who will be affected but all the farmers who know that they might be affected. This is a tax on tragedy, and no one knows if it will befall them.
Victoria Atkins
My hon. Friend and Lincolnshire neighbour sets out exactly the personal impact of the tax. I know how Treasury Ministers look at spreadsheets and those terribly impressive packs of information from civil servants. [Interruption.] I remind Government Members that this is deeply serious; it is not a joke. I also know that Chancellor after Chancellor has looked at the figures and come to the conclusion that this is a political decision. The current Chancellor has got it wrong.
Oral Answers to Questions
Caroline Johnson Excerpts(2 weeks, 6 days ago)
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Dr Caroline Johnson (Sleaford and North Hykeham) (Con)
Rachel Reeves
The tax rises in the Budget were used to provide a £22.6 billion uplift in the Department of Health and Social Care budget to ensure that our NHS is properly funded. The NHS will ensure that important services are properly funded, and those allocations will be set out in the normal way.
VAT: Independent Schools
Caroline Johnson Excerpts(2 months, 2 weeks ago)
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Dr Caroline Johnson (Sleaford and North Hykeham) (Con)
Others have talked about the effect on children of military families and on children with special educational needs, as well as the impact on friendships, mental wellbeing, jobs in both state and private schools, and the bursaries, but I will focus on students in exam years. I declare an interest as I have three children in private school, one of whom is in her final year.
This measure is wrong, but it is especially reckless for those in exam years. We have heard a lot about the steps the Prime Minister took to ensure that his son could study peacefully, to give him the best chance in his GCSEs. Why does he not want the same for all the other children in this country?
The measure is not only disruptive but potentially impossible. Local to my constituency, Stamford school offers A-level Russian, Lincoln Minster school offers A-level Chinese and Oakham school offers the international baccalaureate. How could those children move into a state school that does not offer their course? Even if their course is offered, the timetable might not work. And even if the timetable works, the school might not teach the same periods and texts. For example, a student at Nottingham girls’ high school studying the Russian revolution as part of the AQA history curriculum might have to move partway through the year to Branston academy, which is teaching the Tudors under the OCR curriculum. What should children taking such courses do? Should they change course, merely months or even weeks before their exams? Should they try to learn the material themselves? Should they resit a whole year of school? Will the Government provide state schools with the extra resources to help those children complete their courses? If they intend to do so, will those resources be ready and available to the state schools those children will be forced into for January 2025?
I want to talk briefly about bursaries. I went to a state primary and a state secondary school. When I was a teenager hiking with my parents in the North York moors, I met a young lad who told me all about the cool, exciting school he went to, where they did a lot of outdoor stuff. I said, “I would like to go there. That would be really cool.” My parents said, “That’s far too expensive, Caroline. We can’t do that.” Then I read about the scholarships they offered. I was very proud and pleased that Gordonstoun School offered me the opportunity to study at the sixth form there—I will always be intensely grateful for that.
The measures proposed by this Government will reduce the amount of bursary support available to students like me, and those currently receiving bursaries, which enables them to get the education they wish for. Schools will have to cut back. The most obvious areas in which to do that will be in their charity work, the extra teaching staff they offer to pupils in state schools and the facilities they make freely available to state schools. This is a short-sighted measure focused entirely on the politics of envy and division.
Saqib Bhatti (Meriden and Solihull East) (Con)
I want to say from the outset that this is clearly an attack on aspiration, an attack on opportunity. I say to the constituents of the hon. Member for Southampton Itchen (Darren Paffey) that he voted for winter fuel payments to be slashed and now he is voting for an attack on hard-working families who will be struggling to make ends meet. I went to a state school and an independent school and I was grateful for both those journeys and the education that I received in both. Plenty of hard-working families will be struggling to make ends meet.
The first point I want to make is about tone. I will come back to the Education Secretary’s tweet, which was deeply offensive. Surely Labour Members must acknowledge—it is a simple case of maths—that people who are rich enough to afford VAT increases, whether it is 4%, 16%, which is the average, or the whole 20%, will continue to send their kids to independent schools and pay the fees. It is the people who are struggling to make ends meet, or the really hard-up families, or—God forbid—parents of children who are on scholarships and bursaries who will no longer be able to send their kids to those schools, because those schools will have to withdraw those scholarships and bursaries as they will be less affordable. So the tone of this debate is really important. I would caution the Government to be more reticent on this. They refer to tax breaks; these are not tax breaks. Education should not be, and is not, taxed, and they are about to open that Pandora’s box.
There have been a lot of comments from Government Members about state schools. I agree: standards in state schools should be improved. They talk about the last 14 years. We delivered a real-terms increase per pupil. We have delivered record funding—about £60 billion. They may challenge that, but it is pure fact. I am happy to share those facts. We did that, and the result of that, especially with our focus on things like phonics, which Labour challenged when in opposition, is that we now have some of the highest reading standards in the world—independently and internationally rated. We also have some of the highest ratings in mathematics. So the Government may try to frame this debate as anything other than ideological, but those arguments are severely undermined by the Education Secretary’s tweet, which put it out there that this is really a class war.
Dr Caroline Johnson
My hon. Friend is making a great point about how this change is ideologically motivated. Can he see why there is a difference between private school fees, which the Government have chosen to tax, and something like Kip McGrath tuition, which is also a paid-for form of education, which they have chosen not to tax—at least yet?
Saqib Bhatti
My hon. Friend made an excellent speech about the practicalities of introducing this change in January, and she makes an excellent point now about the slippery slope involved. The Government say that the money will be focused on educational improvements, but there is no guarantee of that, as it will go into the general pot. They promised 6,500 new teachers, which is fewer than we delivered; it is a drop in the ocean, which will barely make a difference to the hundreds of thousands of schools that, of course, need extra teachers. I concede that point; we should have better educational standards.
SEND will affect every Member of Parliament. It affects me. I was with a north Solihull parents group just a few weeks ago. Those parents will no longer be able to afford to give their children a private education for SEND purposes, and they will now have to rely on the state. Surely Government Members can see that that will further increase the burden on state provision, particularly if they are right that there is a lack of teachers. The Minister might address this point: how does this policy improve state school provision? How does it improve the standard and quality of delivery for SEND parents? It was all right for the Prime Minister to make special provision for his kids, and for the Education Secretary to have a benefactor, but what are these parents going to do?
Winter Fuel Payment
Caroline Johnson Excerpts(3 months, 1 week ago)
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James Murray
I thank the right hon. Gentleman for his intervention. The Chancellor will take all decisions in the Budget on 30 October—[Interruption.] Let me make one important point to him as we approach the Budget on 30 October: we know there are going to be difficult decisions that we have to take in the Budget and, frankly, that is a direct consequence of the decisions taken by him and his colleagues when they were in government.
Dr Caroline Johnson (Sleaford and North Hykeham) (Con)
As he is a Treasury Minister, I wonder whether he could help me with this question. How many of the pensioners who will lose the winter fuel allowance today receive less than the average train driver the Government have just given a pay rise to?
James Murray
I understand the political point that the hon. Lady is trying to make. But let me be clear. If she is talking about pensioners, the foundation of state support for pensioners is the state pension, which is why the Government have committed to maintaining the triple lock for the duration of this Parliament.
Peter Swallow
I said that the Labour party would restore the broken economy inherited from the Conservative party.
In the long term, there is only one permanent solution to ending fuel poverty: we must end our dependence on volatile foreign energy markets and deliver lasting energy security. The Conservative party failed to do that in Government, leaving energy bills higher for every household, including those most in need. That is why this Government’s plan to create GB Energy, a new national energy company, is vital. It will bring energy supply back into the hands of the British public and help to get prices back under control. That is the long-term solution to fuel poverty: home-grown, British-controlled power.
Dr Caroline Johnson
Roughly 13,000 people in the hon. Gentleman’s Bracknell constituency will not get the winter fuel allowance this year as a result of the changes that he has just voted for. How many of them does he estimate will struggle to pay their bills?
Peter Swallow
I have already set out the support that I want to see, as well as the support that the Government have put in place to help pensioners in my constituency and to bring energy bills down in the long term, which will help all households in Bracknell and across the country. That is a really important first step on the road to growth. Because of the triple lock, a growing economy means growing pensions and growing support for pensioners in need.
Future prosperity does not fall out of the sky. We have to create the conditions for it, and those conditions are sensible spending, bringing debt under control, and encouraging investment. To do those things, we must dig ourselves out of this financial hole, and that means tough choices. This policy is a difficult step—a step that I did not want to take—but it is a step away from the brink towards stability, security and growth. That is why I back it.
Wendy Morton (Aldridge-Brownhills) (Con)
Madam Deputy Speaker,
“The winter fuel payment gave me peace of mind that I would be able to heat my home and stay warm during the winter”—
not my words, but those of a constituent, and they are typical of the many comments I have received in my inbox and those I have heard when I have been out and about across my constituency.
In my constituency, there are just 2,138 recipients of pension credit, yet an estimated 18,300 pensioners will lose out this winter. This political choice, because that is what it is, means that those very same pensioners—those 18,300—will lose up to £300 of winter fuel payment; in addition, the energy price cap rise of 10% puts further financial pressure on them of about £149. It impacts pensioners earning as little as £13,000 a year. Contrast that with the inflation-busting pay rises that the Government have handed out. Contrast that with the billions that the Government are spending on GB Energy, a state-run company that will not produce any energy, nor will it cut their bills. What is more, when the vast majority of my pensioners, who are waiting for their annual increase of £460 next year—thanks to our work when we were in government—deduct £300 for losing the winter fuel payment, they will be left with an increase equivalent to just 44p a day: less than the cost of a pint of milk.
Dr Caroline Johnson
I wonder how many of my right hon. Friend’s constituents who will lose that vital payment earn less than the train drivers who have had all that extra money.
Laurence Turner
We will take no lectures on hospital admissions, given the state of the NHS that the right hon. Member’s party left us.
The Conservatives claimed that they did not know what the pay review body recommendations would be, but the School Teachers’ Review Body recommendations were known to Ministers before July. They will know also that the different PRBs tend to make similar recommendations. Why were most of those recommendations not submitted in good time? Because Ministers were late in submitting their evidence, pushing the timetable until after the election. The Office of Manpower Economics has said:
“The work of the PRBs is demand led and essentially non-negotiable—departments set the remits and timetables.”
Shadow Ministers talked about productivity gains, but when it came to NHS negotiations under the last Government, productivity was just a slogan. The cupboard was bare. They had nothing to actually ask for.
Dr Caroline Johnson
The hon. Gentleman is making a case comparing the salaries of working individuals with the pensions of the elderly. Could he tell me how many of the people who will lose the winter fuel allowance in his constituency earn or receive less than the minimum wage?
Laurence Turner
In my constituency, there are approximately 2,600 pensioner households that do not receive pension credit—that is one of the legacies of the previous Government—but are entitled to it.
The Conservatives suggest that they would have rejected the pay review body recommendations, forgetting that one of the first acts of the Margaret Thatcher Government in 1979 was to accept the recommendations of the Clegg commission on pay comparability. If only the Conservative party had more courage today.
The winter fuel allowance exists because of a Labour Government: a Government who increased the value of those payments fivefold in 13 years, compared with an increase of zero under 14 years of the previous Government—a real-terms cut of 33%.
Rebecca Harris
My hon. Friend is spot on. It is the anxiety that it causes people. They do not know if they will live another 18 months or 25 years. People on fixed incomes, with no ability to raise that income, are very worried about spending money. There is also a large and, sadly, growing cohort of elderly residents who are developing dementia, and one of the early symptoms, often, is financial anxiety, including in people whom we would think of as really quite wealthy. I have known residents who have regressed to thinking that they are still living under rationing because they grew up as a lad in abject poverty, and they will not spend money. Being told, “Here’s £300 for fuel,” makes a world of difference to those people.
I was not a fan of Gordon Brown, who once gave a derisory 75p increase to pensioners, but this policy was a huge success—credit to him. That is why my Government never changed it. For £300 for every pensioner, we give incredible peace of mind that they can put their heating on—
Dr Caroline Johnson
Does my hon. Friend worry, as I do, that some of our constituents will die this year as a result of this policy?
Rebecca Harris
I do not think that I need to worry; I think we know that will happen, because we know about their behaviour and their concerns about putting the heating on, and their lack of understanding of how much every heating bill will cost them. This £300 was psychologically very important to knowing that they could put their heating on to keep them healthy and out of hospital. Of all the tough decisions that we had to consider when we came into office in 2010, when there was no magicked-up, home-made £22 billion black hole excuse—there was a vast deficit and we had to make a lot of tough decisions—we never made this one.
Public Spending: Inheritance
Caroline Johnson Excerpts(4 months, 3 weeks ago)
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Rachel Reeves
We have heard today that hon. and right hon. Members across the House campaigned in good faith on projects that they thought the money was there for. The money simply was not there. We cannot go on like that, which is why I have been open, transparent and honest about the state of our public finances and the £22 billion black hole left by the previous Government. The Secretary of State for Health and Social Care, my right hon. Friend the Member for Ilford North will meet my hon. Friend the Member for Watford (Matt Turmaine) and all MPs who are affected by the problems left by the previous Government.
Dr Caroline Johnson (Sleaford and North Hykeham) (Con)
Congratulations, Madam Deputy Speaker, on your new role. This Labour Government have chosen to take the winter fuel payment away from pensioners. The right hon. Lady does say she will keep it for those on pension credit, but the threshold for that is very low. That means someone on an income of just £220 a week may find themselves receiving nothing. It is long established that being cold increases ill health among vulnerable people. What estimate has she made of what her changes will cost the NHS?
Rachel Reeves
Pension credit is paid to a single person who has an income of just under £12,000 and for a pensioner couple of just under £18,000. We will indeed keep pension credit for the poorest pensioners and boost take-up of pension credit to ensure that everybody who is entitled to it gets it, but we cannot make promises—the previous Government should not have made promises—without being able to say where the money is going to come from. That is the road to ruin. We saw that with Liz Truss, and I am afraid it was repeated under the current Leader of the Opposition and the current shadow Chancellor. They should hang their heads in shame for what they have done to our public finances and our public services.