Family Businesses

Debate between Caroline Johnson and Mel Stride

Wednesday 26th February 2025 Commons Chamber

[Mel Stride]

To paraphrase the leader of the hon. Gentleman’s party, I have already answered his questions. I do note his serial offence of being a member of several trade unions at the moment—it is good of him to disclose that.

The changes to business property relief will see the break-up of many family firms. Of course, the Government will say that it will have an impact only on the wealthiest estates because of the £1 million threshold, but how many of those companies will have the cash available to settle those liabilities? The value of many businesses, of course, lies in their assets. Liquidating those assets to pay those kinds of liabilities, given that the assets are often instrumental to the effective working of the firm, is an absurdity. We also know that the changes will damage businesses’ ability to borrow against assets when there is a sword of Damocles hanging over their head by way of a potential future inheritance tax liability.

Research by CBI Economics for Family Business UK suggests that this policy may not even raise any money. The firms that will be impacted have said that on average, they will invest 17% less in their business as a consequence of this measure; in fact, 15% of those businesses have said they would sell their business altogether.

Of course, the rules will be complex. There will be plenty of red tape and legal advice to be taken from solicitors—real ones. Some people will pay through dividends on which they have already been taxed, so they will be taxed twice. Tax on tax, as we know, is the Labour party way. William Lees-Jones of JW Lees, the long-established family brewery and pub operator in the north-west, has said that the family business tax would

“inevitably reduce future investment in the company.”

Importantly, he goes on to say:

“It would also place our business at a considerable disadvantage to our competitors who tend to be listed or owned by private equity, sometimes overseas.”

So it is that British institutions, which, in some cases, have been in the same family for decades, or even centuries, may end up shutting down or being forced to sell to foreign buyers as a result of this single reckless policy.

[Dr Caroline Johnson (Sleaford and North Hykeham) (Con)]

What Labour seems not to understand is that every business starts with an idea, a hope or a dream, and the individual then puts their whole heart and soul, and every working hour they have, into building their business, often as a whole family endeavour over many generations. It is that, not just the economics and the jobs, that Labour is destroying.

[Mel Stride]

My hon. Friend is absolutely right. That is where the dearth of experience of entrepreneurship on the Government Front Bench really shows. We see this not just with BPR, but with agricultural property relief. Family farms will be broken up, with years and generations of people struggling and working hard, whatever the weather, to grow businesses and provide the food that we need torn asunder with a stroke of the Treasury’s pen.

Oral Answers to Questions

Debate between Caroline Johnson and Mel Stride

Monday 31st October 2022 Commons Chamber

[Mel Stride]

Given that I never made that statement, I do not agree with it, no.

[Dr Caroline Johnson (Sleaford and North Hykeham) (Con)]

Thank you, Mr Deputy Speaker—sorry, Mr Speaker. [Laughter.] I will not be called next time, will I?

The Government have done a great deal to help people with their cost of living challenges, but elderly residents in my constituency are troubled by reports in the newspapers suggesting that we may not meet our manifesto commitment to retain the pensions triple lock. Pensioners face a triple whammy of dwindling savings value due to low interest rates, rising costs due to inflation and, owing to their age, an inability to go out and earn any more. Will my right hon. Friend please confirm that we will increase pensions in line with inflation?

[Mel Stride]

I admire my hon. Friend’s persistence on this matter, but I am afraid I must give her the same response that I have given on numerous occasions this afternoon, namely, that we will have to wait until at least 17 November for an answer. I understand the particular pressure that pensioners are under because they are often unable to change their economic circumstances, as others within the labour force can; but we will have to wait.

HMRC Estate Transformation

Debate between Caroline Johnson and Mel Stride

Tuesday 29th January 2019 Commons Chamber

[Mel Stride]

I would be very happy to meet the hon. Gentleman to discuss the matters he has raised.

[Dr Caroline Johnson (Sleaford and North Hykeham) (Con)]

Improving public services is about more than just spending more money; it is about delivering better services more efficiently, on which the Treasury is well placed to lead. Will my right hon. Friend confirm that these changes will improve the services available to my constituents and how much money will he save to spend on the other public services they receive?

[Mel Stride]

I can confirm that services will be improved. All the evidence suggests that is the case as we have upgraded and brought HMRC into the 21st century, and I have already stated that the savings will be of the order of £300 million in the run-up to 2025.