Finance (No. 2) Bill

Jim Allister Excerpts

2nd reading
Tuesday 16th December 2025 Commons Chamber

[Jim Allister (North Antrim) (TUV)]

I want to begin by endorsing and agreeing with the very articulate and passionate contributions from Members right across the House. It is encouraging that there have been speeches from those on the Labour Benches attacking the cruel death tax on family farms—that is the only way to describe it. It is cruel, no matter what way you look at it.

The right hon. Member for Orkney and Shetland (Mr Carmichael) laid it out very clearly, as indeed he did yesterday in the Liaison Committee when he put the Prime Minister on the spot and the Prime Minister had no answer. A Prime Minister with no answer needs to change course. The Government have lost the argument on this issue. It is no answer to simply say, “We have the numbers to drive it through”. This needs to be done on the basis of equity and what is right. Having lost that argument—and so patently lost it—they need to face up to that. Just as the Prime Minister lost the argument yesterday in the Liaison Committee, so the Government need to face up to that point on this issue as well.

I want to make some comments about the Bill that are particularly pertinent to Northern Ireland. In any fiscal landscape, critical to being a part of a United Kingdom is the reasonable expectation that there will be the same fiscal ground rules across that United Kingdom—that if business is given advantage in one part, it will equally have that advantage in another. Yet when I come to this Finance Bill, particularly clauses 13 to 15, I discover to my dismay that businesses in Northern Ireland are not to have the same advantages when it comes to the capacity to scale up, as is provided for in clauses 13 to 15 regarding enterprise investment schemes, venture capital projects and enterprise management incentives. That is because the hideous tentacles of the Windsor framework have reached right into this Bill.

Because of the Windsor framework’s imposition on Northern Ireland business of EU state rules, we find in clauses 13 to 15 the exemption of Northern Ireland companies from the advantages to be given to others under those clauses. That removes the fiscal level playing field that should operate in any UK internal market. That undermines the UK internal market, because under those clauses companies in Great Britain will rightly be able to maximise state aid so that they can maximise their trading power, but an alike company in Northern Ireland has the benefit it can obtain from those scaling-up opportunities capped by EU state aid rules. That means they are not on a level playing field when it comes to competitiveness in respect of the capabilities in the Finance Bill.

That causes me to challenge the declaration that the Bill has no effect on GB-Northern Ireland trade. It most patently does if some companies in GB can scale up using these enhanced benefits from investment and venture capital unfettered by any state aid rules, while the same type of company in my constituency has the benefit it can draw fettered by the imposition of EU state aid rules. That is neither fair nor right, and it is but the latest manifestation of the Windsor framework and our continuing subjection to foreign laws.

These are not laws that we make here. EU state aid rules are not set here; they are set in a foreign Parliament that no one in this United Kingdom elects by a combination of Ministers from 27 other countries who have no accountability to anyone in my constituency or any constituency in this Parliament—and yet those rules are traducing and impeding business in Northern Ireland.

[Carla Lockhart]

The hon. and learned Member is making a passionate contribution, and he is absolutely right. In truth, clauses 13 to 15 all increase support for businesses across the UK, apart from those in Northern Ireland. It is not that we have been overlooked; the clauses expressly, explicitly and deliberately exclude us. That amounts to discrimination. It has to end.

[Jim Allister]

It has to end. It is discrimination at the behest of a foreign power. It is Brussels saying, “You must impose state aid rules on Northern Ireland.” The product of that in these clauses is a foreign Parliament dictating to this Parliament what we can and cannot give to our own businesses in this United Kingdom. That is so fundamentally offensive to our constitutional integrity that it goes to the very heart of what it means, or what it should mean, to be part of a United Kingdom.

--- Later in debate ---

[Lucy Rigby]

The Scottish Government have been given a record settlement—a £820 million boost in this Budget—that takes the total additional funding for the Scottish Government from this Labour Government to more than £10 billion.

I was talking about the entrepreneurship package in the Budget. As my hon. Friend the Member for Buckingham and Bletchley (Callum Anderson) said, we are doubling the maximum amount that a company can raise through the generous enterprise investment and venture capital trust schemes. We are making them more generous, and are supporting more investment in companies that are making the transition from start-up to scale-up, and we are not stopping there.

When some of our most innovative, high-growth companies succeed, bringing jobs and growth to our economy, we want them to list here, too. That is why this Bill ensures that companies that list here in the UK will benefit from a stamp duty holiday on their shares for the first three years on the market—a point well made by my hon. Friend the Member for Burnley (Oliver Ryan). We are backing British entrepreneurs and ensuring that the UK remains one of the most attractive places in the world to found, scale and list a business.

Let me address the point referred to by the hon. and learned Member for North Antrim (Jim Allister) about the application of the measures that I have just spoken about to Northern Ireland. I can assure him that Northern Irish service companies will benefit from the expansion of the scheme, and goods and wholesale electricity companies in Northern Ireland will continue to benefit from the previous scheme limits.

[Jim Allister]

The key is in the point that the Minister finally made there; that is under the previous scheme. Northern Ireland is not to get the uplift that the rest of the United Kingdom does under clauses 13 to 15. Why? Because we are subject to EU state aid rules. We are being held back by the old rules, whereas everywhere else in the United Kingdom gets the new uplift.

[Lucy Rigby]

I assure the hon. and learned Member, who makes a valid point, that there are hardly any—very few, if any—of these types of goods and wholesale electricity companies in Northern Ireland that come close to the existing limits of the scheme, let alone the extended limits.

We are very clear about the role of business and economic growth in improving household incomes, but we are also clear that after the Opposition gave this country the worst Parliament on record for living standards, far too many people are still struggling with the cost of living. This Government are already making progress to tackle that. Wages have gone up more in the first year of this Government than in the entire first decade of the last Government. Real household disposable income was £800 higher in the first year of this Parliament than in the last year under the Tories, but we know that there is more to do.It is because of the fair and necessary choices in this Bill that we are able to help ease the cost of living for millions of families across this country. Those choices are how we are cutting energy bills for millions of households by an average of £150 per year and extending the warm homes plan. They are how we are lifting the two-child cap and, with it, lifting half a million children in this country out of poverty. They are how we are freezing prescription charges and rail fares, and increasing the national living wage while protecting the triple lock on pensions. This is a Government who are committed to helping people with the cost of living, to putting more money in people’s pockets, and the choices we are making in this Bill do just that.

My hon. Friends the Members for Scarborough and Whitby (Alison Hume) and for Wolverhampton North East (Mrs Brackenridge) are absolutely right that the choices this Government are making in this Finance Bill will help restore our public services. Those choices are why the Chancellor is able to put libraries in primary schools, as my hon. Friend the Member for Scarborough and Whitby referred to, and they are why she is able to protect NHS budgets as well. They are why she is able to invest an extra £300 million in NHS technology, roll out 250 new neighbourhood health centres right across this country, and continue to get waiting lists—which stood at a record high when this Government came to power—back under control. That means millions more people able to access the healthcare they need, free at the point of use; millions more people getting the operations, preventive care and scans they need. It is how we will be able to repair our NHS and ensure it will continue to exist for the next generation and for many generations to come.

This Finance Bill is about delivering on our commitments. It is about building a stronger economy in which prosperity and living standards rise, child poverty falls, businesses succeed and public services are renewed. Every measure in this Bill is geared towards that goal. We promised change and fairness, and we are delivering both. For those reasons, I commend this Bill to the House.

Question put, That the amendment be made.

Finance (No. 2) Bill

Jim Allister Excerpts

Report stage
Wednesday 11th March 2026 Commons Chamber

In summary, my constituents in Bolton West simply want to know that the rules apply to everyone. They want a tax system that is fair, they want high streets where legitimate businesses can thrive, and they want to be confident that those who cheat the system will not be allowed to prosper. If the high streets illegality taskforce focuses on enforcement and practical reforms, it has the potential to restore confidence, support honest traders and ensure that everyone pays their fair share. I look forward to doing all I can to support the Chancellor, the Treasury team and HMRC in this endeavour, and I trust that this Bill will work towards achieving that goal.

[Jim Allister (North Antrim) (TUV)]

I rise to speak to amendments 112 to 139, which stand in my name and those of other hon. Members. When the Chancellor introduced the Budget, she described it as a Budget for growth and a Budget to encourage business. The natural assumption was that we would have growth across the whole United Kingdom, that there would be no discrimination against any part of this United Kingdom, and that what was available to encourage growth in one part of the UK would be available in the others. That would be a natural expectation, given that we are a United Kingdom.

Sadly, this Bill does not live up to that expectation, because clauses 13 to 15 introduce scandalous discrimination against businesses in Northern Ireland. Clauses 13 to 15 are about updating the assistance to businesses in England, Scotland and Wales, but not to those in Northern Ireland. These are the very levers that enable businesses to grow. Clause 13 is about enterprise management incentives, which were introduced in 2000. Since then, thousands of companies have used them as a tool to attract, retain and reward their employees through options, enabling employees to acquire shares in a company without liability for income tax or national insurance contributions. Instead, any gain is usually subject to lower rates of tax under capital gains tax.

Under the enterprise management incentive, there have been caps on what is available. Under clause 13, the EMI limit on company options will be increased to £6 million for Scotland, England and Wales, but it will stay at £3 million for Northern Ireland. The EMI limit on gross assets will be increased to £120 million in England, Scotland and Wales, but limited to just £30 million in Northern Ireland. In England, Scotland and Wales, the number of employees a company can have will be lifted to 500, but Northern Ireland will retain the figure of 250. On that measure—one of a trio of measures capable of encouraging businesses to grow—we see an uplift for Great Britain, but a stagnation in the assistance for Northern Ireland.

We see the same in clause 14 on the enterprise investment scheme. That scheme, along with the venture capital trusts covered in clause 15, has been a very useful tool for companies attracting investment so that they can grow. It has been described by the British Business Bank as

“a government-driven initiative designed to stimulate investment in early-stage businesses through venture capital. It serves as a significant source of capital for these companies while also providing attractive tax reliefs to the investors who support them.”

What is happening to the enterprise investment scheme across this one United Kingdom? In England, Scotland and Wales, the gross asset requirement will be raised to £30 million, but in Northern Ireland it will stay at £15 million. There is an uplift for both standard companies and new growth companies in GB, but none in Northern Ireland. A knowledge-intensive company’s lifetime investment limit in Scotland, England and Wales will be raised to £40 million, but in Northern Ireland it is capped at £20 million. It is the same in clause 15 on venture capital trusts. Again, Northern Ireland is trapped at the level set in 2012, whereas the rest of the country is allowed to move into 2026.

When this Government talk about growth and pretend that it is growth for the whole United Kingdom, the fundamental question I have to ask is this: why does this Budget, in clauses 13 to 15, inhibit growth in my part of the United Kingdom while not giving a level playing field, not allowing equality across the United Kingdom and denying parity to Northern Ireland in this way? This amounts to systemic discrimination against business in my constituency. One is tempted to ask: are the Government trying to incentivise companies to locate in GB? Is that the motivation, because if someone about to set up a company realises that their venture capital thresholds and the incentives they could be given are higher in GB, why would they go to Northern Ireland?

That is the disparity this Government are creating, and it is certainly not because the private sector is doing too well in Northern Ireland. Alas, Northern Ireland still has 27% of its workforce in the public sector in comparison with the UK average of 18%. The answer, sadly, lies in the fact that this Government and this Parliament embrace that discrimination against Northern Ireland because they are wholly beholden to the European Union. Northern Ireland, under the iniquitous Windsor framework, has been left under the EU state aid rules. That is the effect of article 10 of the Windsor framework. It leaves us subject to the state aid rules of foreign institutions, not the state aid rules of this United Kingdom. That has caused the Government, in their beholden attitude to the EU when it comes to enterprise schemes, venture capital and all the things in clauses 13 to 15, to simply retain Northern Ireland at the levels of support that were permitted pre-Brexit. Why? Because they are not prepared to face down the EU on the imposition of their foreign laws on my part of the United Kingdom in respect of support for industry.

[Carla Lockhart]

Many small and medium-sized enterprises in my constituency are looking to expand, invest and grow beyond being an SME, but the Bill does not afford them that opportunity. You would forgive businesses in Northern Ireland for feeling deeply disadvantaged. That, on top of the practical daily problems they face as a result of the Windsor framework, is putting them at a disadvantage.

[Jim Allister]

There is absolutely no doubt about that, and the Government are putting it up in lights. They are saying to new businesses coming into the United Kingdom or starting in the United Kingdom, “If you place yourself in GB, you will have an uplift available to you in terms of the aid we can give and the venture capital you can draw in, but if you stay in Northern Ireland then you will be at the bottom of the pile, treated unequally.”

[Charlie Maynard]

Will the hon. and learned Gentleman please remind the House what last year’s growth rate was for Northern Ireland compared with for the whole UK? I think it might have been three times higher.

[Jim Allister]

That is a very insightful question, but the answer is even more insightful. The growth we have had in Northern Ireland is in the services sector—lo and behold, the sector that is outside the Windsor framework. The manufacturing sector, which is clobbered by the Windsor framework, has not grown. The growth we have had—and thank goodness for it—is in the services sector. Contrary to the hon. Gentleman’s mantra of believing that all things EU are precious and beneficial, that is an illustration and an indication that our liberation from the EU in terms of services has served us well, but our entrapment in the EU in respect of manufacturing has served us very ill. The Bill underwrites that disadvantage to Northern Ireland.

I say to the Minister: tell my constituents and my businesses why they are treated differently, why they are less deserving of the same capacity to be supported, why they cannot draw in the same level of venture capital or investment schemes, and why they are the second-class citizens of this United Kingdom. The answer, as I have said, is because this Government are wholly beholden to the EU. This is a Government with a reset policy. If they follow the trends of Northern Ireland, then very shortly under their reset policy, they are going to enslave themselves again to EU state aid rules; they are going to end up in the same predicament, where they will not be allowed to increase their state aid, such as they are doing here.

There is one final point that the House needs to understand. If there is a dispute over whether there has been state aid that might breach the rules of our foreign masters, it is not the courts of this land that would decide on such a matter, but the European Court of Justice. It is so obnoxious, so wrong and so offensive that, though I sit as a Member for a United Kingdom constituency and come to this Parliament of the United Kingdom, this Parliament cannot make laws governing these issues in Northern Ireland because of the surrender of sovereignty to the EU. If this Government had any backbone and cared about parity in the United Kingdom and about the businesses in my constituency, they would be setting about giving us an equal playing field and facing down those who insist that it is their laws, not ours, that must apply.

[Madam Deputy Speaker (Caroline Nokes)]

I call the Minister to wind up.

--- Later in debate ---

[Dan Tomlinson]

If the Conservatives had credible plans and a credible history of reining in welfare spending, then I would, of course, be interested in taking them seriously. However, it was the shadow Chancellor, the right hon. Member for Central Devon (Sir Mel Stride), who was the Work and Pensions Secretary when the welfare budget exploded. We are now trying to get on top of that.

I will not address new clauses 15 to 19 directly. The Government have set out our position on them at previous stages, although I do urge the House to reject them today.

I will now turn to the points raised by the hon. and learned Member for North Antrim (Jim Allister) around amendments 112 to 139, which would have the effect of removing the distinction between the options available in respect of “specified Northern Ireland companies” and other companies from clauses 13, 14 and 15. The hon. and learned Gentleman has made his views known very clearly both today and on Second Reading. I will make the same point that the Economic Secretary to the Treasury made on Second Reading: as he will be aware—although he did not, I believe, mention this in his speech —service companies are able to benefit from the increase in the threshold. It is the Government’s understanding that there are very few, if any, goods and electricity companies in Northern Ireland that are close to the current enterprise management incentive limits, and we therefore think there will be minimal impact from these companies being subject to the previous scheme limits.

[Jim Allister]

Is the Minister saying to the House that the criterion here is to look at each region and see who is near the thresholds, and then to magically increase those that are? Surely the truth is that the Minister is not increasing the threshold because he has handed the power to do so to a foreign jurisdiction.

[Dan Tomlinson]

I am just stating a fact, which is that there are few—if any—businesses near the relevant thresholds. The hon. and learned Member made the point that the Government’s decision may be hampering growth and investment; I do not think that is the case. I am proud to be a member of a Government who are seeking to deepen and strengthen our ties with the European Union so that we in this country can increase our productivity through better flowing trade, working together with our partners. I therefore urge the House to reject amendments 112 to 139.

Amendments 6 and 8 relate to the changes to business property relief and agricultural property relief as raised by the shadow Exchequer Secretary as well as the hon. Members for Weald of Kent (Katie Lam) and for Keighley and Ilkley (Robbie Moore). If we were to adopt those amendments, we would weaken the public purse by about £300 million a year. It would also leave a status quo that contributes to the very largest estates paying lower average effective inheritance tax rates than the smallest estates. I therefore urge the House to reject those amendments.

The hon. Member for Keighley and Ilkley asked for clarity on payment deadlines in the inheritance tax system. The Government’s position is that the six-month point is the right one. It has applied for a long time, and it is not our position to change that timeline when these changes come into force.