Budget Resolutions
Debate between Caroline Johnson and Andrew Griffith(1 month, 2 weeks ago)
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Andrew Griffith
Indeed, there will be an impact on charities and the third sector—those who care for us at the most difficult points in life. On Friday, I met representatives from a charity in my constituency that cares for those with dementia. Its income is fixed, its needs are ever present, and as a result of this Labour Budget, it simply does not know how it will balance its books.
Dr Caroline Johnson (Sleaford and North Hykeham) (Con)
Is the reality not that the Labour Government also do not know how they will balance the books? I asked the Secretary of State for Health and Social Care in a written parliamentary question how much the rise in employer national insurance contributions will cost the Department. The Government said that they did not know.
Andrew Griffith
Either the Government do not know but should know, or they do know and should say.
The Budget also included the highest-ever increase in capital gains tax, and a reduction in business property relief. Just as with the family farm tax, that reduction is an attack on the family-owned businesses that dominate our high streets and industrial parks. The incentive to take risk, and to create and grow a family business with the objective of passing it on, will be fundamentally undermined. Some 75% of UK businesses are family run, and in aggregate they employ 50% of all workers in the economy. We are talking about decades of hard work, dedicated to building a legacy, and people creating an insurance policy for their passing. The so-called “loopholes” in inheritance tax that Government Front-Benchers talk about are legitimate tax policies, introduced by a Labour Government in 1976 to ensure that businesses were not broken up and devastated on the death of an owner, to the detriment of the remaining employees, workers, suppliers, customers, the wider economy, and even the Treasury, which would lose future tax take. This measure could be devastating for our communities and our high streets up and down the country.
It is not just Conservative Members who are sounding the alarm, though we may be doing it with a greater degree of passion. The chief executive officer of UKHospitality said that the increase in national insurance will undermine businesses operating at the margins and
“be a brake on growth”.
Family Business UK, which represents family-owned enterprises, has said that the Budget
“removes entirely any incentive for starting or running a family business.”
Social Security
Debate between Caroline Johnson and Andrew Griffith(3 months, 1 week ago)
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Andrew Griffith (Arundel and South Downs) (Con)
My hon. Friend is making a powerful, emotive speech and quite rightly talking about some of the impacts on pensioners. Does she agree that those are exactly the impacts that should be captured in an impact assessment and brought before the House so that we can make an informed decision and that my 25,000 constituents in Arundel and South Downs, who may face a loss if the motion is not agreed to, are increasingly talking about the right hon. Member for Leeds West and Pudsey (Rachel Reeves) as “Reckless Rachel” in proceeding with this measure?
Dr Johnson
I thank my hon. Friend for that intervention. He is absolutely right. Why is there no impact assessment? I have my suspicions, and my terrified constituents know why there is no impact assessment—it is because they know what the impact will be. I am sure, Madam Deputy Speaker, that your terrified constituents know what the impact of the policy will be. Right hon. and hon. Members all know, too. As right hon. and hon. Members vote, they should be in no doubt that the Government’s first job is to keep people safe, and they are going to fail miserably.