Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 21st January 2025 Commons Chamber

[Mr Speaker]

Let us go to the Member for that well-known mining area of Strangford.

[Jim Shannon (Strangford) (DUP)]

Mr Speaker, I spoke to the Minister beforehand, so he knows where I am coming from with my question.

I understand that some families of those affected who have passed away have retired to Northern Ireland, and they deserve their pensions. That being the case, has the right hon. Gentleman had an opportunity to ascertain the numbers of those in Northern Ireland who will qualify for such pensions, and will he chase up those people to ensure they get the moneys they deserve?

[Darren Jones]

I thank the hon. Member for his question. I am afraid I have not had time to do so since he told me 35 minutes ago that he was going to ask that question, but I have heard it clearly. I will take that away and come back to him in course.

UK-China Economic and Financial Dialogue

Jim Shannon Excerpts

Tuesday 14th January 2025 Commons Chamber

[Madam Deputy Speaker (Judith Cummins)]

For the final question, I call Jim Shannon.

[Jim Shannon (Strangford) (DUP)]

While I welcome the UK-China economic and financial dialogue, as the Chancellor will know, as chair of the all-party parliamentary group for international freedom of religion or belief, I have repeatedly highlighted in this House human rights abuses in China, with regard to Uyghur Muslims, Tibetan Buddhists and Christians in Hong Kong and China. How will the Government and the Chancellor make sure that safeguards for British money and goods are put in place to ensure that economic engagements do not directly support those violations? Human rights concerns, forced labour, denial of religious freedom and ongoing suppression in Xinjiang, Tibet, Hong Kong and Taiwan must be remembered at all costs and in all deals with China.

[Rachel Reeves]

I thank the hon. Gentleman for that thoughtful question. It is important that when we engage with China, we co-operate where we can, we compete where necessary, but we challenge whenever our values do not align. Like the hon. Gentleman, I care deeply about issues of religious freedom and forced labour, but that is the whole point of engaging. We have to engage in the world as it is, not in the world as we would like it to be. It is through those engagements that we are able to raise even some of the most difficult issues and be very clear about the values of our great country.

Agricultural and Business Property Relief

Jim Shannon Excerpts

Tuesday 14th January 2025 Westminster Hall

[Graham Stuart]

I thank my right hon. Friend for that intervention. On Friday, I visited Ian and Rebecca at Bygott farm just outside Beverley, which is about 220 acres. Their profits would be wiped out by the expected inheritance tax for 10 full years, with 10 years to pay it. The expected annual payment for 10 years would be greater than their profit last year. They also play that vital role, which my right hon. Friend mentioned, of looking after the watercourses. The villagers nearby do not know what a critical part they play in maintaining those watercourses.

[Jim Shannon (Strangford) (DUP)]

I commend the right hon. Gentleman for bringing this forward. All my neighbours in Northern Ireland are small farmers. Everyone will be impacted, because the threshold of £1 million is too low. The threshold should be between £4 million and £5 million, which would give a chance to retain the family farm. Has the right hon. Gentleman had the opportunity to talk to the National Farmers Union or the Ulster Farmers Union to ascertain their legal opinion, which is against what the Government are introducing?

[Graham Stuart]

The hon. Gentleman is absolutely right. If the measure was about hitting huge investors, they are the ones least likely to be affected. The richest and most sophisticated will find it easiest to avoid the impact. Small farmers, such as the ones I visited on Friday, will be most seriously affected. It is a bit like the winter fuel payment cut. If the Government took that away from people who had an income of more than £25,000, it would be infinitely less controversial. The point is, it hits people on very low incomes and hurts them the most.

Public Finances: Borrowing Costs

Jim Shannon Excerpts

Thursday 9th January 2025 Commons Chamber

[Darren Jones]

I am pleased that the hon. Member can afford the subscription to Bloomberg News; I cannot, unfortunately, so I could not read the article to which he refers. He inadvertently asks me a question about the process of the spending review. [Interruption.] That was the question. We are embedding mission-led government, which is what the Prime Minister set out in his missions in his plan for change. That requires Departments to work together to make sure that they are absolutely focused on the delivery of the plan for change priorities, which is why the spending review is being done on a multilateral basis in a new way. I will be giving a speech on this issue in a couple of weeks’ time, and I will make sure that the hon. Gentleman gets an invitation.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for all his answers this morning. The UK’s public debt has risen sharply over the decades. At the moment, it is reaching levels not seen in the post-world war two era, meaning that a large proportion of our expenditure is focused on paying back, as opposed to public spending. I always try to be constructive, as the Minister knows. Nowhere will the impact—on health and education, for example—be greater than in Northern Ireland. I have a very specific question for the Minister: what discussions has he had with Departments, and particularly the Finance Department, at the Northern Ireland Assembly?

[Darren Jones]

I lead for the Treasury on inter-ministerial relationships with Finance Ministers in the devolved Governments. I regularly meet my counterparts, and I will meet them in Wales in the coming weeks to talk about our spending plans for the future.

Christmas Adjournment

Jim Shannon Excerpts

Thursday 19th December 2024 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

First, let me thank all my staff in the office back home for all the work that they do. Their efforts are the reason that my constituency office works so well.

In the short time that I have, I want to give a message of hope. I was thinking about what I wanted to say a long time ago. It seems like it was only yesterday that we were bringing in the new year, and now that has passed. I think of the loss of friends and my heart aches at the thought of those empty chairs around the Christmas table, which many of us will have. For those whose loved ones are in hospital and not with them, and those whose families work in essential care, Christmas can be a lonely time. I am reminded of Ecclesiastes 3:1-8:

“To everything there is a season, and a time”.

Times can be tough. I think of those who are struggling financially and who cannot find a way to solid ground. They cannot see a way forward, and they have nowhere to turn.

I think of those who have lost relationships with partners or children and who find themselves in a position where they are all alone. I think of those who are awaiting news from hospitals or from tests, or who are watching their ill loved ones, not knowing what the year holds. I can understand the hopelessness that flows from that, yet I have a faith that sustains me. I am reminded of the Christmas message—the ultimate message of faith, hope and love. I often cling to the scripture in Hebrews 10:23

“Let us hold fast the confession of our hope without wavering, for he who promised is faithful.”

I know that, while times may be difficult, God is faithful and will never leave us alone in our struggles. He never leaves me alone.

The Christmas message is from a God who loved us so much that he sent his only son to die so that we could have life. The message that comes from his perfect and sinless life, his shameful death and his glorious resurrection is one that gives us hope over 2,000 years later. This is not a nice story wrapped in a bow. This is a story of desolation and despair, yet the plan of God, which is not always easy to see or to understand, was at work in turning it all for the good for all of us. The baby in the manger—the Christ on the cross—is the King of Glory. I am thankful that this reminds me of the hope that I have when I hold fast to him.

As we consider the Christmas story, we must remember that it did not end with the gift of the three kings, with a miracle at a wedding, or with a cross on a hill. It is an unfolding story in which right hon. and hon. Members have a part to play. We can all choose to bring light and hope. In a world of despair, I find that there is still goodness all around us. I think the goodness of God is seen through the goodness of people around us.

When I think about all the good work carried out by the volunteers, the Church and the charitable sector and when I see the goodness of community groups and neighbours, I am reminded that people are still good. When I read of those acts of kindness to strangers, I think of what it says in the good book—if we entertain a stranger, we could be entertaining an angel. Who knows who we will meet in this world when we do something good for a stranger.

In his introduction to the debate, the hon. Member for Harrow East (Bob Blackman) referred to helping those homeless people on the street. Again, that reminds me that people are still good. There is still a desire to help others, and God still moves in situations. A world without hope is a world in darkness. Although it may feel like the skies are darkening, I have faith because I have seen goodness and light throughout this year, dispelling the darkness.

To conclude, from my home to each and every home in this wonderful United Kingdom of Great Britain and Northern Ireland—I love telling people that we are all better together in this United Kingdom of Great Britain and Northern Ireland—I wish you all a very happy Christmas and blessed new year. It is with hope in my heart that I trust that we will all see the goodness of God through the goodness of the people we meet in 2025.

National Insurance Contributions (Secondary Class 1 Contributions) Bill

Jim Shannon Excerpts

Committee of the whole House & 3rd reading
Tuesday 17th December 2024 Commons Chamber

[Sammy Wilson]

We have seen over the last five months that growth has already been impacted. Of course, the OBR has indicated that in two and three years’ time, growth will be impacted negatively as well. I do not think that one can hide behind those arguments. As I said, I hope that I am wrong, but I suspect that all the economic logic on the impact of this measure and what we are already hearing from employers indicate that that is not the case.

[Jim Shannon (Strangford) (DUP)]

The reality is that those who own businesses in my constituency tell me that they will have to look at reducing wages and reducing numbers. Because of the Government’s policy, those working in doctors’ surgeries will have to look at a reduction in numbers as well. Whether Government Members like it or not, this measure will impact on small and medium-sized businesses and on GP surgeries. That is the reality. The Government are to blame for a recession—there really is talk about it. If a recession comes, the Labour party will be responsible.

Farming and Inheritance Tax

Jim Shannon Excerpts

Wednesday 4th December 2024 Commons Chamber

[Victoria Atkins (Louth and Horncastle) (Con)]

I beg to move,

That this House regrets that the Government has undone its promises to farmers, and is seeking to punish them with Inheritance Tax bills of hundreds of thousands, or even millions, of pounds by cutting Agricultural Property Relief and Business Property Relief; further regrets that the Government has provided conflicting information on the number of farms that will be affected, and has not conducted an impact assessment of this approach; notes that figures from the National Farmers’ Union suggest that some three quarters of farms will be affected; further notes that farmers tend to be asset-rich but cash-poor and that figures from the Country Land and Business Association suggest the average arable farm will have to sell 20% of its land to pay the Inheritance Tax bill that this policy will cause; notes that the Central Association of Agricultural Valuers anticipates that this will affect 75,000 owners of farming businesses over a generation; notes also that this land is not guaranteed to be used for food production if sold; and calls on the Government not to impose the cuts to Agricultural Property Relief and Business Property Relief set out in the Budget that will lead to the end of family farming as it has been known for many generations in the UK.

This Government have driven farmers to despair. The hike in national insurance, the acceleration of delinked payments, the fertiliser tax, the double cab tax, the stalling of capital grants, the scrapping of the rural services delivery grant and the slowing down of applications to farming schemes are all conspiring against our rural economy and the survival of British farms. Yet the Government have added a death tax to that: the family farm tax, which is seeing families across the United Kingdom worry about whether they will be able to hand on their farms to their children, as generations before them have done.

In the 36 days since Labour’s Budget, the Chancellor, the Secretary of State and Ministers have tried to justify their family farm tax, which will break up family farms, by claiming that only 500 farms will be affected each year. Awkwardly, the figures used by the Chancellor are contradicted by figures produced by the Department for Environment, Food and Rural Affairs. The left hand does not know what the far-left hand is doing. When the figure was queried by the National Farmers Union, the Country Land and Business Association, the Tenant Farmers Association, farmers across the United Kingdom and us Conservatives, Ministers told us all rather patronisingly that we did not understand and that farmers should seek professional advice. Well, farmers have sought professional advice, which has revealed just how badly wrong the non-economist Chancellor has got her numbers.

[Jim Shannon (Strangford) (DUP)]

Will the shadow Minister give way?

[Victoria Atkins]

In a moment.

Since the Budget, the Central Association of Agricultural Valuers has analysed the family farm tax and applied tax law and the realities of modern-day farming to it. Its analysis has revealed that up to 75,000 individual owners of farming businesses could be affected over the coming generation, even before inflation, which is the equivalent of five times the Government’s figure of 500 farms affected in 2026-27. How could they have got this so wrong? It is because this city-dwelling Chancellor, Secretary of State and Exchequer Secretary do not understand modern farming or the countryside that they have overlooked a major area of tax policy and forgotten to consider thousands of farmers.

As the Exchequer Secretary has confirmed, the Government forgot to include one of the three routes to the relief in their calculations. They have not included business property relief-only claims in their figures, which means that as many as 14,000 tenant farmers who cannot claim agricultural property relief because they do not own the land on which they farm are absent from their calculations. What is worse is that Ministers do not know how many farmers are affected by that.

The city-dwelling Chancellor and Secretary of State have also forgotten about the farmers who in years gone by followed professional advice and transferred their farms into companies or partnerships. Those farmers will claim only BPR, so they have been left out of the calculations. Again, Ministers do not know how many farmers are in that position.

[Victoria Atkins]

I will in a minute.

I am told by advisers that some farmers choose to use BPR only because it is easier in probate. Guess what? Yet again, Ministers do not know how many farms are in that position, and they have not been included.

I will give way first to the hon. Member for Strangford (Jim Shannon) and then to the hon. Member for Scarborough and Whitby (Alison Hume). I have so much more to say.

[Jim Shannon]

I commend the shadow Minister for bringing forward the debate. The collective decision to have this debate in the House is one that my farmers and constituents very much support. Professional legal advice sought through the Ulster Farmers Union—I must declare an interest as a member of the union—indicates that somewhere in the region of 65% of small farmers and family farms in Northern Ireland will be affected. When it comes to understanding that, has Labour really got no idea what is going on?

[Victoria Atkins]

I thank the hon. Gentleman for intervening. The evidence is building again and again against the assurances that the Chancellor, the Secretary of State for Environment, Food and Rural Affairs, the Exchequer Secretary and the farming Minister have given the House. Frankly, the farmers outside deserve better, and so do we as Members of Parliament.

I will give way to the hon. Lady and then carry on with the calculations that the Government have got so wrong.

National Insurance Contributions (Secondary Class 1 Contributions) Bill

Jim Shannon Excerpts

2nd reading
Tuesday 3rd December 2024 Commons Chamber

[Damian Hinds (East Hampshire) (Con)]

We have a mission-led Government. I am not sure whether anybody knows exactly what that means, but we do know what the mission is meant to be: delivering for working people. But I am afraid that the Government have forgotten how working people become working people. It is the people—the other people—who employ them. All of us in this House want excellent public services, but it is only the Conservatives who understand that to get excellent public services, business needs to generate the wealth. The Government have a bit of a “four legs good, two legs bad” mantra that sees business as a cash cow to be milked to pay for the public sector. They have forgotten that fundamental dependency. They have even messed up the “four legs good, two legs bad” theory, because they seem to have forgotten that a very large part of what delivers our public services is people—people who are not directly employed by the public sector.

Let us take nurseries as an example. We have had another mission this week on early years education, which I welcome, but it will be hampered in its delivery by this national insurance contributions rise. Then there are the universities. They received a bonus of £390 million from a fee increase a couple of weeks ago, but they will be paying £400 million in extra national insurance contributions.

I have also heard from many GPs across my constituency in East Hampshire, who see the Government giving with one hand and taking away with the other. The Minister says that the Government will take care of this in the settlement for GPs, which is fine, but it should have come on top of what they should have been doing for GPs anyway. Lord Darzi and the Secretary of State have been talking about increasing the focus on primary care. We know how the Treasury works when it is making its spending allocations to Departments; things will be tucked in under that settlement, so we need to see it rise. How do the Government think GP practices plan? Here we are in December, and the new financial year starts at the beginning of April. Do Ministers not think that, in the national health service, general practitioners need certainty now about what is going to happen?

The wider point is this: the Treasury can reimburse GPs, but it cannot reimburse the private sector. Ultimately, there is no such thing as a tax on business. Taxes can only ever ultimately fall on people. They fall on the owners of that business, the customers of that business, or the employees of that business. The analogy for the Treasury reimbursing GP practices for their increased costs is the employees of a private company reimbursing their employer for that cost. It is they who will ultimately pay. Economists are united in saying that employer national insurance contributions are only ever, in the end, seen in lower wages or lower employment figures. The Government talk about difficult decisions, but difficult decisions are the ones that employers will be faced with: do I cut down my wage settlements or do I let people go?

[Jim Shannon (Strangford) (DUP)]

Not more than half an hour ago, I met a businessman from Northern Ireland whose firm employs 1,200 people. He said national insurance contributions will cost the firm almost £1 million a year. The cost will ultimately be passed on in its food prices, which will rise by between 15% and 20%, and the ordinary man or woman on the street will pay for it. Does the right hon. Gentleman agree that that is where the Labour party has got this wrong?

[Damian Hinds]

The hon. Gentleman is quite right. This is not some trivial increase that is easy for an organisation to absorb. While 1.2 percentage points may not sound like much, with the serious decrease in the threshold at which it starts being paid, it is a lot of money. The cost of employing the average worker on medium earnings goes up by £900. For a 21-year-old on the legal minimum wage working full time, the cost goes up by £770. Moreover, it is regressive because it will fall more harshly on people at the lower end of the wage spectrum and on people who are part time. It cannot be seen in isolation; it must be seen alongside all the other things the Government are doing. Of course, the national living wage has risen. That increase is a good thing in itself, but the effect compounds with the other measures being taken.

Two of the three volume employer sectors in this country—retail and hospitality—are also seeing a massive reduction in the business rates relief they are getting next year. When unemployment hits, young people are always hit first and most, and that will be true again. It will hit those furthest from the labour market, those who need most help, those coming back to work after a long period and those who were ex-offenders. I sometimes wonder if Ministers talk to each other about the contradiction and irony of one of them producing a document called, “Get Britain Working” while their colleague is hellbent on doing the opposite.

Non-Domestic Rating (Multipliers and Private Schools) Bill

Jim Shannon Excerpts

2nd reading
Monday 25th November 2024 Commons Chamber

[James Murray]

The hon. Gentleman raises a crucial point about ensuring that the tax system is fair and that it supports the behaviour that we seek to incentivise.

That leads me neatly to my next point. As part of the discussion paper on transforming business rates, we have committed to consulting on adopting a general anti-avoidance rule for business rates in England. Although that might not necessarily address the exact problem the hon. Gentleman highlights, it speaks to the general issue of avoidance in relation to business rates.

We will also look at how the burden adjusts with the economic cycle, and we will assess the merit of a further increase in the frequency of re-evaluations. I look forward to working closely with businesses and representative organisations to deliver a business rates system that is fit for the 21st century, and that work begins today with the powers in this Bill to deliver our permanent tax cut for high streets.

As I said earlier, the tough decisions that the Chancellor set out in the Budget to deliver economic stability and fix the public finances enable us to give businesses the confidence they need to invest, and to get public services back on their feet. One public service that is crucial to breaking down barriers to opportunity is the education system, which is why the Government have prioritised ensuring that every child has access to the high-quality education that they deserve.

[Jim Shannon (Strangford) (DUP)]

Like others, I have repeatedly raised the need for exemptions for religious schools. For the Free Presbyterian Church in Northern Ireland, for example, the expression of its faith and treasured beliefs does not sit comfortably with mainstream schooling, and it is the same for many other faiths. If the Government are determined to press ahead, does the Minister agree that exemptions must be made, at the very least, for such schools? On behalf of those Churches, those faiths and those people, I have to say that the Government must think again.

[James Murray]

I thank the hon. Gentleman for a rare intervention, but this Bill is about business rates in England. Some of his wider points may relate to the removal of the VAT exemption for private school fees in other countries and nations of the UK. Those provisions will be debated as part of the Finance Bill on Wednesday and, if he repeats his comments, I might be able to address them more specifically.

Today, we are addressing the business rates system that applies in England. This is important because every parent aspires to get the best education for their child, and we as a Government are determined to ensure that those aspirations are met. At the Budget, the Government announced a real-terms increase in per pupil funding, with a £2.3 billion increase to the core schools budget for the financial year 2025-26, including a £1 billion uplift in high-needs funding.

This funding increase needs to be paid for so, to help make that happen, the Government are ending the tax breaks for private schools, as set out in our manifesto. This includes ending charitable rate relief eligibility for those private schools in England that are charities. This Bill will do that, and its measures operate alongside the ending of the VAT exemption for private school fees, which is being delivered through the Finance Bill that I will be moving on Wednesday. Together, these measures will raise £1.8 billion a year by 2029-30.

Financial Assistance to Ukraine Bill

Jim Shannon Excerpts

2nd reading
Wednesday 20th November 2024 Commons Chamber

[Jacob Collier (Burton and Uttoxeter) (Lab)]

May I start by congratulating my hon. Friend the Member for Amber Valley (Linsey Farnsworth) on her excellent maiden speech? I have heard that former Crown prosecutors can go far in this place, and I am sure that she will.

I rise to speak in strong support of the Bill, and I am grateful to colleagues for showing their support for it, because it is essential to the UK’s continued steadfast support for Ukraine as it defends itself against Russia’s illegal and brutal invasion. Through the Bill, the Labour Government will ensure that funds derived from sanctioned Russian sovereign assets—assets that were once used to fuel Putin’s war machine—will help Ukraine in its fight for freedom. That is not only morally right but in Britian’s national interest, as so many hon. Members have said. Supporting Ukraine means supporting the frontline of our democracy and our shared values of liberty and self-determination.

Most Members of the House recognise that it is critical to stand with Ukraine, but I am deeply disappointed that some question our unwavering support. Some have suggested that concessions should be made on both sides in this war, as if there is some kind of equivalence between Ukraine’s fight for its freedom and Russia’s criminal and illegal invasion. Let us be absolutely clear that calls for concessions send the wrong message to Ukraine, the world and future generations. These calls undermine Ukraine’s sovereignty, reward Putin’s recklessness and disregard the horrific suffering that has been inflicted on the Ukrainian people.

[Jim Shannon (Strangford) (DUP)]

The hon. Gentleman is right to mention what the future holds. We all want peace, Ukrainians above all, but that peace must be based on justice, and we in this House must commit to that. The message from this House today should not be about the Ukrainians under pressure from Russian troops, but about our commitment in this House to them. We can influence the United States President to ensure that things look more positive for Ukraine. Does the hon. Member agree that that has to be the message that we send from this House?

[Jacob Collier]

I now have a parliamentary medal: I have taken an intervention from the hon. Member for Strangford (Jim Shannon). I am grateful, and I agree with what he said.

Some of the views that we hear are a dangerous form of appeasement that only emboldens the aggressor and undermines the cause of peace, freedom and democracy. That weakens Ukraine, our position and the values that we in this House should defend. We must reject such defeatism and appeasement, and we must stand firm in the face of tyranny, for Ukraine and for the values that we hold dear in this democracy. To do anything less is to surrender our ideals, and that is not an option.

The Bill demonstrates that this Government are committed to doing the opposite. It builds on our already substantial support, including £3 billion in annual military aid and £2.3 billion in additional funding, drawn from immobilised Russian assets. It also enables the UK’s £2.26 billion contribution to the G7’s extraordinary loan scheme. This funding will directly support Ukraine’s defence by providing vital air defence systems, artillery and armoured vehicles. That support is vital, not only for Ukraine but for the security of the UK and the wider world. As the Chief Secretary to the Treasury rightly highlighted, a safe and secure Ukraine means a safe and secure United Kingdom.

It is testament to our country’s leadership on the global stage, and a point of pride, that the issue has had cross-party support in this Parliament. The Prime Minister’s commitment to continued military aid, and the UK’s role in driving the largest sanctions package ever imposed on a major economy, reflect our iron-clad determination to hold Russia to account. Putin is now 1,000 days into a war that he thought would last just a few. His miscalculation has drained Russia’s economy; 40% of its annual budget is now consumed by the war effort. His forces have suffered their highest rate of casualties since the conflict began. This is no time for us to falter.

I pay tribute to the bravery of the Ukrainian armed forces, and the crucial work of the UK armed forces in training their Ukrainian counterparts. Let me say how proud I am of our troops’ vital contributions to Ukraine’s defence efforts—a pride that was reinforced by my visit to the 29th Regiment Royal Logistic Corps and the Commando Training Centre Royal Marines. Seeing their dedication at first hand was a reminder of the professionalism and commitment of our armed forces, who are making a tangible difference in Ukraine’s fight for freedom. The unity of this House, our Government and our allies is essential to ensure that Ukraine has the resources that it needs to prevail. Let us send a clear message today: Britain will stand with Ukraine for as long as it takes.