Budget Resolutions

Jim Shannon Excerpts

Wednesday 6th November 2024 Commons Chamber

[Jonathan Reynolds]

I am sorry but, again, the right hon. Gentleman is wrong. I agree with part of his assessment, such as that a strong and thriving private sector is crucial to growth, but I find his analysis a little simplistic. Private firms will say that they also need skilled workers, and that they need a decent transport system so they can get to work.

Under the last Government, I would often get up in the morning and check my phone for updates from people using the trans-Pennine line I just mentioned—the one we are upgrading—and it would be full of people saying, “I cannot get to work.” I need the right hon. Gentleman to make a slightly broader analysis.

Despite the previous Government leaving us with a raging skip fire in many areas—we have to raise money, not to deliver our pledges but to deliver their pledges that they did not properly fund—we have had a regard and a heed for the level of competitiveness in the UK economy. For instance, on the rise in employers’ national insurance contributions, over half of all firms with national insurance liabilities will actually pay less or the same, not only because of the changes to the employment allowance but because of how we have removed the threshold so that all firms now qualify.

Despite the frankly terrible inheritance bequeathed to us, we have done our best to meet those needs and to deliver a long-term focus on the future.

[Jim Shannon (Strangford) (DUP)]

Will the Minister give way?

[Jonathan Reynolds]

I was going to move on, but I cannot resist the hon. Gentleman.

--- Later in debate ---

[Jim Shannon]

I hope the Minister will not be disappointed.

There are many good things in what the Government have brought forward, but what is missing, unfortunately, is support for farmers on inheritance tax. Farmers are the backbone of Britain, and they produce almost all the food we eat across this United Kingdom of Great Britain and Northern Ireland. Farmers will be impacted greatly.

I declare an interest as a member of the Ulster Farmers Union and the National Farmers’ Union, and all the farmers I talk to in Northern Ireland have indicated that every farmer in Northern Ireland will be affected by inheritance tax. If the Government want to get it right, the threshold needs to be raised, and it is not too late. Raise the threshold to £4 million or £5 million so that family farms, the backbone of Britain, can continue.

[Jonathan Reynolds]

I always listen to the hon. Gentleman because he is genuine and conscientious in representing his constituency’s interests. I will always listen to what he has to say. We can judge the exact impact of these changes by looking at the value of claims to date. The Conservative party’s analysis has forgotten to aggregate the impact of the changes to those allowances, such as agricultural property relief, alongside the existing nil-rate band and the ability to transfer the allowances between spouses in all cases. The total number of farms across the UK that will be affected by this change is actually only 500 for the 2026-27 financial year. That has been missed, and I remind colleagues that any inheritance tax liability has a 10-year, interest-free payment period. To be frank, there has been some scaremongering from the Opposition, and we have to be clear with people.

We have had to restore economic stability to deliver that investment, and we should not shy away from explaining why this has been so necessary. The previous Government’s scattergun approach to growth left our country starved of investment, economically divided and struggling to maintain a competitive edge in the global economy.

The previous Government’s claim to have delivered the fastest-growing economy in the G7, based on its performance in the first half of this year, is laughably false. I believe that The Sunday Times likened it to someone walking a marathon in six hours but, because they ran the last 100 yards, claiming to be the fastest runner in the world. The truth is that consistency and stability have been sorely lacking. We have had seven growth strategies since 2010 and 11 Business Secretaries in as many years, to say nothing of the UK’s revolving door of Prime Ministers.