Stamp Duty Land Tax

Gideon Amos Excerpts

Tuesday 28th October 2025 Commons Chamber

[Gideon Amos (Taunton and Wellington) (LD)]

Access to home ownership has never been harder. Fewer and fewer people can afford to buy a home of their own, and 12,000 households in my county of Somerset are languishing on the waiting list unable to get a home at a decent rent. We have heard a lot about Mrs Thatcher, but since the sell-off of council houses began, 2.3 million were never replaced. The Conservatives broke that promise over and over again, so although our population has increased by five times that amount, we have had a massive loss of homes for social and council rent; several Conservative Governments never replaced them.

By taxing transactions, stamp duty land tax is unfair on buyers. It needs to be reformed, but, as my hon. Friend the Member for St Albans (Daisy Cooper) has said, as part of a full review of property taxes. The vast majority of first-time buyers would be completely unaffected by the Opposition’s proposals, because they already pay no stamp duty land tax. It seems clear that, by triggering a big increase in house prices, the policy would mostly benefit those who are selling homes at high prices, and probably only those right at the beginning of the chain.

More importantly, wiping out tax revenue without wider tax reform or any serious proposals for the resulting massive hole in public finances would be another Liz Truss Budget in the making. Perhaps she planted the magic money tree, but this autumn we are seeing the fruits of it in more mad Conservative tax proposals. It seems clear that the Conservatives have learned nothing from the Truss Budget’s rocketing of inflation and increasing of mortgage rates, which affected everyone in my constituency.

[Mr Snowden]

The interest rates on the bond market are now higher than they were after that mini-Budget. Constantly harking back to that, when we are in a worse position now than we were then, makes the point that the Lib Dems are on everybody’s and nobody’s side.

[Gideon Amos]

I understand why Conservative Members keep asking us to look forward not backwards: their own Government’s experience with the Truss Budget is one that they do not want to remember and would like to forget, but unfortunately its effects were long, far-reaching and serious for all of our constituents.

[Adam Jogee (Newcastle-under-Lyme) (Lab)]

I am grateful to the hon. Gentleman for giving way. I followed him when I gave my maiden speech and it is good to see him in his place. Does it not say everything that Conservative Members are now defending the Truss Budget and all the damage that it did to communities like mine and his?

[Gideon Amos]

Absolutely. They have no recollection of the past, they are blind to the experience of their own Government, and they are only asking, urging and pleading us to look forward, not back at their own record.

In Taunton and Wellington, there are countless examples of folk who are unable to afford a home of their own. Rosanna, a qualified solicitor, has been living with her parents for over six years because she is unable to afford a new home. What is needed is a far bigger focus on building the council and social rent homes that are needed by our country. The Liberal Democrats propose to raise the number from the Government’s target of 20,000 per year to 150,000 per year. There should be less reliance on a few big house builder developers, whose interest, perfectly reasonably, is in increasing profits and the value of their land, rather than in making their products cheaper—why would they?—or in necessarily increasing the amount of housing supply.

Less reliance on the big developers and more council and social rent homes delivered by public funding would mean that there would be no need for the Government to cut the affordable housing requirements in London, as they did last week. Our manifesto provided £6 billion a year over five years to begin to achieve not just the 90,000 social rent homes that Shelter and the National Housing Federation say that we need, but our manifesto target of 150,000 homes. A decent home should not be for just the most vulnerable and excluded; all working people should be able to have a home with a decent rent. Coupled with that, we need new routes to be available for people to get on to the home ownership ladder and a new generation of rent-to-own homes, where renters can gain ownership over 30 years.

[Rebecca Smith]

The hon. Member is making a powerful speech, as he always does. However, there is a gaping hole in his argument when it comes to people who are looking not for their first home, but for a bigger home, which may be a new property or a property that already exists. What would he say to his Taunton constituents who are in that middle bracket, given that he will be voting not to scrap stamp duty? That land tax will hinder them from taking a step up the ladder, whether by buying one of the many new homes that he admirably wants delivered in his constituency or by buying a home that already exists.

[Gideon Amos]

I would point my constituents to the comments made by Lucian Cook, the head of research at Savills, who has said that the proposed SDLT giveaway would simply pass straight into house prices. It would have very little, if any, effect on people’s ability to buy homes, whether they are downsizing or not.

[Graham Stuart]

The hon. Gentleman is being very generous with his time. I may have misheard, so will he clarify for the benefit of the House? At the beginning of his remarks, I thought that he said that this was a very bad tax and that it was harmful, but then, as only a Lib Dem could, he proceeded to argue strongly in its favour. Will he help me out, because I am not following the line of his argument?

[Gideon Amos]

The right hon. Member, for whom I usually have respect, was clearly not listening to what I said. It is possible for there to be several features to a change in tax policy. Our argument, as my hon. Friend the Member for St Albans pointed out, is that we need a comprehensive review of property taxes. The effect of the stamp duty holiday was to increase house prices. It may, none the less, be a valuable policy, because it may free up transactions, as my hon. Friend the Member for Carshalton and Wallington (Bobby Dean) argued. My observation is that these are not the policies that will help people who are struggling to afford a home to rent and to get on the housing ladder in the first place. They may be valuable for other reasons, but they will not address that problem. As I say, coupled with that we need a big investment in rent-to-own housing. Since 2015—this is the big point, which would be unaffected by the Conservative proposal— the multiple of income needed to get a mortgage, as my hon. Friends have pointed out, has risen from four-and-a-half to six-and-a-half times their income.

Without more genuinely affordable homes in significant numbers and wider tax reform, this cut is unfunded. It will leave first-time buyers with nothing new and transfer funds to the wealthiest. That is simply not enough to help my constituents. We need a much more ambitious renaissance in the building of council and social rent homes, and we need new measures to help people to get on to the housing ladder.

[David Chadwick (Brecon, Radnor and Cwm Tawe) (LD)]

I am glad that my hon. Friend is calling out the consequence of Thatcherite policies. Does he agree that no country has suffered more from Thatcherite policies than Wales?

[Gideon Amos]

My hon. Friend is a fantastic champion of his constituency in Wales and has experienced the effects of the reduction in and dwindling of council and social rent homes around the country in Wales, as in other parts of the country, including in my own constituency. We used to have 30,000 council homes available, but we now have only 6,000, and that number is going down every year.

This is not about the broken promise not to allow people to buy their homes; it is about the broken promise of not replacing those council and social rent homes. That has to be addressed, and it was never addressed by multiple Conservative Governments. Without those changes and wider tax reform and investment in social and council rent homes, this policy on its own would do nothing to help my constituents, and I am unable to support it.

Spending Review 2025

Gideon Amos Excerpts

Wednesday 11th June 2025 Commons Chamber

[Rachel Reeves]

I thank my hon. Friend for raising those concerns about schools in the Forest of Dean and that school in particular. The state that schools are in after 14 years of Conservative Government is just not good enough. After what they did in the ’80s and ’90s, I did not think that even a Conservative Government would leave schools in this state. Many MPs will be able to talk about examples similar to my hon. Friend’s from their constituencies. I will ensure that the Department for Education and the Education Secretary hear about the specific case that he raises, because we want to improve the conditions that our young children are taught in.

[Gideon Amos (Taunton and Wellington) (LD)]

I thank the Chancellor for her statement. As well as freeing people up by tackling the social care crisis, the real way to get the growth we all want is a target for publicly funded social homes—albeit, I welcome the funding that has been found for housing—and funding for the infrastructure that communities want, which will unlock tens of thousands of homes. The Wellington and Cullompton stations project was something I raised with the Chancellor last summer. She said at the Dispatch Box that it would be going ahead, because it had started. That project will bring £180 million of growth to the Cardiff-Bristol-Exeter corridor and generate hundreds of new jobs. Are my constituents right—a genuine question to the Chancellor—to be dismayed that there is no mention of any south-west projects in the statement today?

[Rachel Reeves]

Last week, we set out additional money for the Mayor of the West of England, and today we have announced a fourfold increase in local transport funding, which will be available for communities across the country. The hon. Member says that he wants to grow the economy—it is disappointing that the Liberal Democrats voted against the Planning and Infrastructure Bill yesterday, which will do exactly that.

Regional Growth

Gideon Amos Excerpts

Wednesday 4th June 2025 Commons Chamber

[Darren Jones]

I thank my hon. Friend for her question and for rightly recognising the importance to our country of its capital city, which has been at the centre of our engine of growth for many years. She also alludes to the fact that we have a brilliant Labour Mayor of London in Sadiq Khan, who strongly makes the case for investment in the capital. We will make further announcements next week that will bolster and strengthen London, and Sadiq’s leadership in London, to deliver for the whole country.

[Gideon Amos (Taunton and Wellington) (LD)]

The Chief Secretary will know that the benefits of the Cullompton and Wellington stations project would bring tens of thousands of people to the city, the metro region and the Cardiff-Bristol-Exeter corridor. Thanks to a cost-benefit ratio of almost 4:1, will he acknowledge the strength of the case for that project, as set out in the letter he received from his hon. Friends the Members for Weston-super-Mare (Dan Aldridge), for North Somerset (Sadik Al-Hassan) and for Exeter (Steve Race) and from me and my hon. Friend the Member for Honiton and Sidmouth (Richard Foord)?

[Darren Jones]

I thank the hon. Member for his campaigning and for welcoming today’s news of historic levels of investment into the west of England for transport. The best use of the money is to make sure that not only do we deliver infrastructure within our combined authorities, but that opportunities are unlocked for broader spending decisions on intercity transport, heavy rail, road investments, new house building and industrial policy spending. The review of the Green Book has been looking at this and further details will be published next week. However, I am confident that we will be able to unlock opportunities for areas outside the combined authorities, and the investment announced today makes a stronger case for doing so.

Business Rates Relief: High-street Businesses

Gideon Amos Excerpts

Wednesday 4th June 2025 Westminster Hall

[Steve Darling (Torbay) (LD)]

It is a pleasure to serve under your chairmanship, Ms Jardine. I congratulate the right hon. Member for Stone, Great Wyrley and Penkridge (Sir Gavin Williamson)—that’s the hardest bit of the speech out of the way now—on securing this important debate.

When we reflect on our communities, it is often our town centres that we think about. Whether it is our own communities, which many hon. Members have spoken about with great love, or others that we enjoy visiting, it is often the town centre at the heart of it that we truly love. However, the challenge that we have faced over recent years is the strange death of our town centres, whether that is a result of out-of-town shopping, online shopping or, more recently, the failure under the Conservatives to reform the business rates system. We now need the new Labour Government to step up to the mark and ensure that reform happens.

As many hon. Members have noted, it is clearly not just about business rates. The problem has been exacerbated by the national insurance hike, which has had a massive impact. Many businesses tell me that they are comfortable with the increase in the minimum wage, but the double whammy of national insurance hikes and the lowering of the levy has had a major impact on them. The worry for many Opposition Members, I am sure, is that the current Government see business as a cash cow. If they bleed the cow too much, it will die. That is a real challenge. I ask the Government to reflect on that.

[Gideon Amos (Taunton and Wellington) (LD)]

Does my hon. Friend share my concern about Hatchers department store in Taunton? It was founded in 1775, but because of the combined effects of the change in business rates and the revaluation, it has seen its business rates go up by 144% in one year.

[Steve Darling]

My hon. Friend makes a very good point. I congratulate him on coming from the glorious county of Somerset, where our Liberal Democrat colleagues have had to pick up the pieces after the disastrous Conservative-run council effectively ran it into the ground for many years.

National Insurance Contributions (Secondary Class 1 Contributions) Bill

Gideon Amos Excerpts

Consideration of Lords amendments
Wednesday 19th March 2025 Commons Chamber

[James MacCleary]

I absolutely agree. The care provider in my constituency faces a 9.4% increase in employer’s costs, which it simply cannot absorb. These are the very people keeping elderly and disabled residents safe in their homes, preventing hospital admissions and easing NHS pressures, yet the Government have chosen to burden them rather than support them. The Lords amendments I mentioned would ensure that care providers can continue to deliver essential services without being driven into financial crisis.

[Gideon Amos (Taunton and Wellington) (LD)]

The £615 cost per person reported to me by care providers in my constituency will mean that one constituent, who is paying £1,500 a week for care for her 94-year-old mother, will no longer have the money to pay for the care of her disabled brother as well, after the fees go up as a result of this jobs tax. Does my hon. Friend agree that that is a shockingly unacceptable result of these changes, and that the Lords amendments introduced by the Liberal Democrats should be accepted?

[James MacCleary]

I thank my hon. Friend for providing such a concrete example of the real suffering these changes will cause. This is not an abstract thing; it is about real people’s lives, and there are people who will suffer as a result, as in the example given by my hon. Friend.

I will move on to nurseries and early years providers, an issue very close to my heart. In my constituency, they are facing the same impossible squeeze. The rise in national insurance contributions, combined with the increased statutory wage costs, is pushing many to the very brink. The National Day Nurseries Association has warned that the average nursery will see an additional £47,000 in costs, which the Government’s funding increase does not come even close to covering. If nurseries are forced to close, it will leave working parents, who are already struggling with the cost of living, without the childcare they need. If schools are exempt from this tax hike, as they should be, the nurseries that provide the very foundation of a child’s education should be, too.

What makes this even worse is that the Government are not just undermining essential services, but forcing more people towards them by stripping away other forms of support. At the same time as these tax hikes, Ministers are cutting vital benefits such as personal independence payment, leaving thousands of vulnerable people struggling to afford the basics, meaning that more people will have no choice but to turn to the very care providers and community health services that are now being hit financially by these national insurance changes. The Government cannot claim to support essential services while actively driving them towards collapse. They are giving with one hand, while taking much more with the other.

I find that a gauge of the level of enthusiasm and pride that a Government have in a policy they have put forward is often the number of their representatives who turn up to support it and be associated with it. Notwithstanding the heroic contribution of the hon. Member for Loughborough (Dr Sandher), the emptiness of the Government Benches speaks volumes.

The Liberal Democrat Lords amendments before us today would help to prevent irreparable damage to GP practices, care providers and the wider healthcare system. I urge the Minister to back them, because failing to do so will cost not just money, but lives.

Inheritance Tax Relief: Farms

Gideon Amos Excerpts

Monday 10th February 2025 Westminster Hall

[Gideon Amos (Taunton and Wellington) (LD)]

It is a pleasure to serve with you in the Chair, Dr Murrison.

I rise to speak up for the 337 signatories to this petition from my Taunton and Wellington constituency. One thing that we should have learned—surely, I hope, the Treasury must have done—is that farms are asset-rich but cash-poor, and that especially applies to smaller family farms. The Treasury’s figure that only 27% of farms will be affected is therefore an underestimate. As the NFU has pointed out, it is more like 75%, because Government figures often leave out the fact that changes are being made to both business property relief and agricultural property relief. That means that more farms will experience an impact, since the maximum allowance applies to both combined.

More importantly, this measure fundamentally misunderstands that the value of a farm is wrapped up in the land and is about not just pounds and pence, but the integrity of that farm. If one starts selling off chunks of that farm piecemeal, time after time, one eliminates the value of that farm as a whole. The Government need to accept the damage that this family farm tax could do.

The Minister might say, “The money can be borrowed—why do they not just borrow the money and pay it off over time?” Ed Hawkins from Cutsey farm in Trull came to see me and explained that if he annualised that payment over a number of years, it would wipe out the very small margin that he depends on to live. We have heard the same thing from other Members. It is not realistic. Robbie Vile from Higher Lillesdon farm in North Curry came to see me with his son, Charlie, who is hoping to go into farming. However, looking at how farming has been treated recently—the delays in the SFI payments, the underspend of a full £358 million of the agricultural budget over the last three years, massive advantage given to Australia and New Zealand, cheap imports after Brexit and now inheritance tax—they ask: why would any young person be encouraged to go into farming in those circumstances?

[Graham Stuart]

Does the hon. Gentleman agree that it would be useful for the Minister to say from the Treasury Front Bench what the average profitability is in British farming? It would be useful to have that on the record, because it is in that context that we have to look at this. If we do not see it in context, we just compare farming with other businesses and can easily mislead ourselves as to the reality for farmers across the country.

[Gideon Amos]

I agree; that would be a very useful statistic. If the Minister is not willing to look it up, I hope he might ask the House of Commons Library to do so, because it would certainly reveal the vast number of farms that would be affected by the scale of the tax that is proposed for them.

In short, I have no objection to the taxing of super-large landowners who use farms as a loophole to avoid inheritance tax—in fact, I would support it. But the irony of this policy is that it will drive more land into the hands of those super-large landowners, because every time farmers have to sell off some of their land, it will go to one of those bigger companies. Seeing that land being sold piecemeal time after time will only damage British farming as a whole. Drawing this tax down to some of the smallest family farms in Taunton and Wellington, and across the country, is unjust. It will not raise the money that the Government say it will. It will mean piecemeal disposal of farms up and down the country. The Government really must raise the threshold for this policy or extend the transitional relief. If they do not do that, the policy needs to go and it needs to go now. That is what the Liberal Democrats would do.

[Dr Andrew Murrison (in the Chair)]

Colleagues, we have some time available, so I am prepared to give a bit of latitude for the Front Bench speeches. I would suggest an indicative 15 minutes, starting with the Liberal Democrat spokesperson, Sarah Dyke.

Employer National Insurance Contributions

Gideon Amos Excerpts

Wednesday 4th December 2024 Commons Chamber

[Lisa Smart (Hazel Grove) (LD)]

I will talk in particular about two organisations in my constituency that have contacted me about the subject we are debating. For context, we know that small businesses have had a tough time for a number of years. They have been struggling with rising prices, interest rates and input costs going up. They were absolutely hammered by the previous Conservative Government, who broke their promise to reform business rates, trapped them under a mountain of red tape and made it much harder and more expensive to trade internationally. Making things harder for small businesses and their workers just is not right. They are the lifeblood of our economy and are exactly where we should be looking for the growth we all need. When we are talking about small businesses, we are also talking about community pharmacies, hospices and GP practices, all of which will be impacted by this tax rise.

We on the Liberal Democrat Benches are particularly worried, as the House would imagine, about the impact of these tax rises on our health and social care sector. We are worried about what it means for social care providers, for the families who depend on them and for the local councils that have to find the funding for many of them. Raising the employment allowance will shield only the very smallest, leaving thousands of small organisations still negatively affected.

In the Chief Secretary’s opening remarks, he asked for ideas about where else he might find some tax revenue. I really encourage him, and indeed all Government Members, to reread the 2024 Lib Dem manifesto—I am sure they have read it at least once. As my hon. Friend the Member for St Albans (Daisy Cooper) laid out from our Front Bench, the Government could reverse the tax cuts that the previous Government gave to the big banks, reform capital gains tax so that it is applied in a much fairer way, and charge the gambling giants more so that they pay their fair share.

I turn to the two organisations in my constituency. A childcare company got in touch because, like many early years settings, it allocates 70% of its revenue to staff wages, and annual increases to the national living wage combined with the increase in NICs will make it impossible to pay for rent, staff improvement and training. That will just make the staffing crisis worse, which is the exact opposite of what the Government say they want.

[Gideon Amos (Taunton and Wellington) (LD)]

Does my hon. Friend agree that businesses such as Sheppy’s cider farm in my constituency, to which I invite all Members to come to enjoy a pint of cider, will be affected not just by the national insurance rises but by the change in business rates and the family farm tax?

[Lisa Smart]

I thank my hon. Friend for his intervention. Sadly, I have not yet tried the wares of Sheppy’s cider farm, but I would welcome the opportunity to visit, try those wares and support it as we all need to do in the face of these changes, which affect everyone.

The second organisation is one of my GP practices, which emailed me. It operates as a legal partnership, as it has done since the inception of the NHS, but as it is a GP practice it lacks flexibility to absorb the increased costs. It cannot raise prices and it cannot do more than it is already doing and drive up activity levels. As it is designated as a public authority but does not get an employment allowance exemption, it will bear the full cost of the impact. It tells me that the rise in national insurance and the lowering of the thresholds will force it into reductions in clinical staffing, adversely impact patient care and increase waiting times. That is exactly the opposite of what the Government say they want.

Oral Answers to Questions

Gideon Amos Excerpts

Tuesday 3rd December 2024 Commons Chamber

[James Murray]

As the right hon. Gentleman will see in the National Insurance Contributions (Secondary Class 1 Contributions) Bill that we will be debating this afternoon, we have doubled the employment allowance to help small businesses to employ up to four people earning the national living wage without paying a penny in national insurance. That is dedicated support to help those small businesses, in the context of what, I admit, is a tough decision. If the right hon. Gentleman has a chance to contribute to the debate, he might say whether he supports the extra public services funding that comes from those difficult decisions.

[Gideon Amos (Taunton and Wellington) (LD)]

Businesses like Mr Miles in Taunton High Street are being hit hard by the changes in taxes for hospitality businesses, including the increase in the wage bill and national insurance contributions, and the massive increase in business rates. That business is now considering reducing its opening hours, which would make our high street less vibrant than it should be. One challenge is the £50,000 rateable value limit for the discount, as many high street premises have a rateable value of more than £50,000. Will the Chancellor consider reviewing the limit placed on the business rates discount for small businesses?

[James Murray]

As the hon. Gentleman will know, we set out our plans for reforming business rates to ensure that retail, hospitality and leisure properties on the high street with rateable values below £500,000 will benefit from a permanent tax cut from this Government. The importance of that tax cut being permanent is that it gives businesses the stability they need to invest and grow. I look forward to his support for our reforms when we vote on them in due course.

Non-Domestic Rating (Multipliers and Private Schools) Bill

Gideon Amos Excerpts

2nd reading
Monday 25th November 2024 Commons Chamber

[Gideon Amos (Taunton and Wellington) (LD)]

The hon. Member for Thirsk and Malton (Kevin Hollinrake), who spoke for the official Opposition—he is no longer in his place—described the Conservative Government’s approach to supporting business. I was going to say that I listened to him with interest, but I think incredulity would be a better word. My hon. Friend the Member for Witney (Charlie Maynard), who is no longer in his place, was rather harsh on the Conservatives. He said that they never followed up on their commitments on business and did not have a clear policy on business. The Conservatives had a very clear and pithily described policy on business: it began with f, had k in the middle and ended with the word “business”. And believe me, they delivered on that policy with their post-Brexit trade deal. In case the message had not been rammed home hard enough, they confirmed it with a Budget that played helter-skelter chaos with the economy.

I therefore sympathise with the new Government’s approach in terms of the Budget they are trying to set and in terms of establishing stability. That is something I would want to support, but I am disappointed that I will not be able to vote for the Bill because of the effect it will have on towns like Wellington and Taunton, which will be hit by a triple whammy. Those towns support some great independent schools, which are charities: Taunton school, Wellington school, King’s College and Queen’s College. They sustain around 1,000 jobs in the constituency, many of which are now under threat. Many workers at those schools—cleaners and catering staff—are worried about what is going to happen.

There are then the very serious effects of the rise in national insurance contributions on small businesses, particularly the many small businesses whose rateable value is over £51,000. That is quite typical for SMEs in a high street in this country—at the smaller end, I would suggest. The owner of Mr Miles Tea Room, a superb place to go in my constituency, has written to tell me about the combined effects of the Budget on his business:

“Firstly, all my staff will now see a reduction in the hours they will be scheduled. As a result, no doubt, some will leave. Where many of my employees already earn over the current minimum wage, I will not be able to increase their pay rates by as much as I have done in the past. Secondly, any full-time employees who leave our employment will only be replaced by potentially 2 or 3 part-time employees. Thirdly, I will not be investing in any capital equipment in my kitchen or new decor in my restaurant. Fourthly, there is a serious potential for me to operate on shortened trading hours, thus reducing the vibrancy of the Town Centre.”

He goes on:

“I was cautiously optimistic that a new Labour Government couldn’t possibly be worse than the previous Tory one in terms of lack of support for SMEs. Sadly, in the space of 3 short months this Government has already proved my optimism was misplaced and there will be many casualties over the next 12 months as the new measures take effect.”

I urge the Minister to reconsider both the effect on independent schools, and I am a great supporter of the state school system—

[Helen Maguire (Epsom and Ewell) (LD)]

There is an independent school in my constituency, Kingswood House school, which has around 50% of its pupils with special educational needs. Many of those pupils do not have an education, health and care plan. Does my hon. Friend agree that schools providing support to so many SEN children should retain their charitable rate relief?

[Gideon Amos]

I absolutely do agree with my hon. Friend. I am also concerned about the influx of children going to local authorities to apply for EHCPs because they will now need them to get the discount, and about the massive effect that will have on already overstretched local authorities. I worry about how they are going to cope with those applications, over and above the SEN crisis at the moment.

I am a great supporter of state schools, partly because of the record of the Liberal Democrats, who not only ringfenced the education budget in the first years of the coalition, but injected £1.25 billion by inventing the pupil premium, which now injects £3 billion—[Interruption.] The hon. Member for Sherwood Forest (Michelle Welsh) shakes her head, but these are the facts.

[Michelle Welsh]

The pupil premium funding was actually disadvantage subsidy pathfinder funding, introduced by the previous Labour Government. The hon. Gentleman’s party just changed the name.

[Gideon Amos]

The pupil premium was new money, and it went into the state school sector. It was £1.25 billion in the first year, and it is worth £3 billion now. It was in the Liberal Democrat manifesto and was delivered as part of our priority for state schools—but I do not believe in state schools just because of party policy. All four of my children attended great state schools in my constituency: Parkfield Primary School, Bishop Fox’s School, and the fantastic Richard Huish College. The idea that the only way to improve state schools is to level down independent schools shows a shocking lack of imagination and a very disappointing approach to education, and education should not be taxed.

The Minister said earlier that those of us who were going for a different approach should be willing to make clear where we would raise the money, and he was right to make that point. The Liberal Democrats have made the same point, and they have made tough decisions in the past. In our manifesto was a very clear Budget spending plan to restore the tax on the big banks’ profits. It was slashed and then taken away in 2018, but simply restoring that single tax would raise £4.2 billion for the economy. I urge the Minister to adopt the principle that if the broadest shoulders should bear the biggest burden, that should apply in the business sector as much as anywhere else. The big companies, the big banks, the giant online retailers, should be bearing the burden of this Budget, not the small high street firms like Mr Miles in Taunton High Street and the other businesses we have heard about, so I urge the Minister to think further about this.

VAT: Independent Schools

Gideon Amos Excerpts

Tuesday 8th October 2024 Commons Chamber

[Mr Gideon Amos (Taunton and Wellington) (LD)]

Does my hon. Friend recognise that thousands of children do not have EHCPs? My hon. Friend the Member for Chichester (Jess Brown-Fuller) referred to the deluge that would surely come to local authorities in the form of applications for EHCPs. That will be just when, because of the legacy of the Conservative Government, local authorities are on their knees and cannot cope with the level of demand. That will further disadvantage the already most disadvantaged children.

[Munira Wilson]

I think many of us—certainly on this side of the House—would recognise the point my hon. Friend makes, and many have already made it. I suspect that quite a few people on the Government Benches would also recognise that this policy will be a real challenge, because Members from all parts of this House have been turning out in vast numbers at any debate on special educational needs to discuss the major crisis in our state school provision for SEND pupils. The system is broken, and it will have further pressures still.

I come back to the point I was making on partnership working. The sort of exemplary work I was talking about benefits children in the state and independent sectors, and we want to see it become the norm in every part of the country. I fear that it will be one of the first things to suffer when schools are forced to make cutbacks under the Government’s policy. Let us remember that most independent schools are no Eton or Winchester; 40% of them have fewer than 100 pupils. Those small schools, often in rural places, will struggle to absorb this extra cost.