Access to Banking Hubs: Hertfordshire

Jim Shannon Excerpts

Wednesday 25th June 2025 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to serve under your chairship, Sir Desmond. I commend the hon. Member for South West Hertfordshire (Mr Mohindra) for securing this debate. He said that it is his first Westminster Hall debate; no doubt, now that he has the taste for it, he will be back next week for another one. I jest, of course, but I am sure that he will be back at some time in the future.

I am a strong supporter of banking hubs and offering communities the service that they deserve, so it is great to be present both to support the hon. Gentleman, and to ask the Minister for help constructively across the whole United Kingdom of Great Britain and Northern Ireland. Banks are not closing just in South West Hertfordshire; they are closing everywhere else in the United Kingdom. Over the past six or seven years, 11 banks have closed in my constituency. We feel the pain of that even today.

Speaking locally, from the point of view of my constituency, local high streets in Northern Ireland have witnessed a series of banking closures over the past 12 to 24 months. The Ards peninsula, where I live, is a banking desert. All the banks that were on the peninsula have closed. In fairness, they have been replaced by two credit unions, and the post offices have been strengthened, so there are some things to fall back on—but the banks on the Ards peninsula are all away. They went to other towns and bigger cities, which do not have the same accessibility for those who need them, especially those who are vulnerable, elderly and isolated. The hon. Gentleman mentioned bus services, but they are not always available to get to the banks or even to the cities, so the accessibility of the services is limited.

Banking and post office services are used daily and are essential to the lives of our constituents. Northern Ireland has a range of banking hubs across the province. This year, it was announced that two are to be developed in my constituency. One has opened in Comber. It is in an excellent location, exactly in the centre of the town. The post office is there, and the four banks—two of which used to operate in the town—do a half-day each in the Comber hub. From the point of view of a potentially good service, the hub is a step in the right direction. The other hub, in Ballynahinch, is to open shortly as well. The same offer will be available there; the banks that were in the town will do a half-day each and the post office is available within that. Will that meet all the banking requests that people have? Probably not—but it does, by and large, give people access to the banks.

The problem I have with bank hubs is that, between when the banks closed and when the hubs were instated, there was a time of perhaps two years. Cash Access UK is delivering those hubs to support residents with the services that they require. We undertake a lot of discussion nowadays on digital inclusion and exclusion. While it is great that we as a society are able to modernise, that does sometimes mean our elderly population, who are used to doing things a certain way, are left behind. Face-to-face services that are accessible for them are imperative. I hope that in future we can look to a greater scope of hubs across the UK, which will also increase employment in local areas.

I conclude with this comment as an example of the problem we are facing: last year one of my staff bought her first house, and her solicitor required a printed statement from her help to buy ISA for Barclays bank. The Barclays in Newtownards, where she lives, closed in 2023. The Barclays mobile service in Bangor, around a 15-minute drive away, could not carry out that function as it did not have the services available. She had to travel to the centre of Belfast, which is 40 minutes by car, to obtain a single, one-sided document. Banking hubs and mobile vans are great, but they must be accessible in terms of what services they can carry out for people; otherwise, in many cases, there is no convenience. Banking hubs delivers some things, but they do not deliver them all.

VAT Registration Threshold: SMEs

Jim Shannon Excerpts

Tuesday 24th June 2025 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a real pleasure to serve under your chairship, Mr Vickers. I thank the hon. Member for Mid Leicestershire (Mr Bedford) for setting the scene and giving us all an opportunity to engage with the Minister on this issue, as the hon. Member for Keighley and Ilkley (Robbie Moore) just did. The Minister is always a very pleasant gentleman—we all know that—and he always seems to be incredibly calm. I am not sure how he does it; maybe all the worries are somebody else’s worries—I do not know what they are. But I do wish him well with his answers to the questions that we pose today.

I read a very interesting article that outlined the pros and cons of raising the VAT threshold above the £90,000 that we are sitting at. What was most notable was the fact that these arguments were all made around an unalterable fact: we in Northern Ireland are hampered from truly having a full discussion by the Windsor framework, which does not allow Northern Ireland VAT to rise above the £90,000 threshold. Even if this debate today could make a change, and even if the Minister agreed with the change, it could not happen. Why? Because of the Windsor framework. I look to my right-hand side: maybe one of the Conservative Members there might have been in the previous Government who left us in Northern Ireland in that limbo land. They can answer for themselves—it is not for me to answer for them—but I do make the point that we were let down badly by the Conservatives in relation to this.

The reality is that, unless we can have regional VAT rates, the UK is prevented from acting in our best interests economically by the EU. It is a fact of life for us, unfortunately, nine years after the vote. I voted—and my hon. Friend the Member for East Londonderry (Mr Campbell) beside me voted—to leave under the same terms as the rest of the United Kingdom; but the EU is still dictating our economic policy in Northern Ireland. That is the reason that the DUP has consistently stood against this European interference. Perhaps, now that some businesses in other Members’ constituencies are being affected, in different regions—

[Mike Martin (Tunbridge Wells) (LD)]

I thank the hon. Gentleman for giving way, but does he not now regret his vote to leave, seeing as it created all of these problems for his constituents?

[Jim Shannon]

No. I thank the hon. Member—he is a friend—but look, honestly, I am a Brexiteer; it is no secret. I want the same Brexit as the rest of the United Kingdom got. I did not get that. We were let down by a Government who did us over, so we did not get what we wanted, but if I had got the same as everybody else in England, Scotland and Wales—and my hon. Friend had—then I would not be having this conversation, and I would not be doing this spiel. I am still a Brexiteer and always will be a Brexiteer, and incidentally, the majority of people in my constituency voted to have the same Brexit as the rest of the United Kingdom, and my constituents did not get it either. When the Minister thinks about today’s debate, if he does not mind me saying, I would ask that he would petition the Cabinet, if it is not too much to ask for, to withdraw from this inherently flawed agreement for us in Northern Ireland.

The article that I read discussed the benefit of raising the threshold, highlighting that Government should want to encourage small businesses to grow. It would be much more effective to raise the threshold to £250,000, I would have thought. It is probably a better figure to work with. That is, of course, supported by the Government’s own statistics, which showed that, in 2022-23, £117 billion —75% of the total net VAT collected in the UK—was paid by traders with an annual turnover of more than £10 million. So, what does that mean exactly? Raising the threshold to £250,000 may not, therefore, have a significant impact on VAT’s total receipts, but it would allow His Majesty’s Revenue and Customs to save costs and to focus its time on ensuring that the largest VAT payers paid the right amount of tax.

The Government have a big, difficult task before them; they have got to balance the books—whatever the figure might be for the black hole, or whatever it may have been. They have set themselves that target to balance those books, and I understand that. Maybe there is another way of saving money, perhaps within HMRC, that could be better. The Minister is a very wise man; he will understand the point I am making, and the civil servants, who are the brains of the Department—I hope the Minister does not mind me saying that—will be able to respond, and maybe pass the message on about whether that can be done.

Raising the threshold would allow a large number of traders in my area, and others, to focus on growth and not question whether they could grow a business enough to cover the additional accountancy costs when VAT is involved. When most businesses register for VAT, they are faced with a choice: either increase their prices by up to 20% or lose 20% of their existing prices as VAT. That is a difficult scenario for a business. The former makes the business less competitive and likely to see a drop in sales, and the latter eats into the profits and ultimately reduces the amount of money the business can use to expand. Neither option advocates for small business growth. As I have said, this is a moot point, as the EU will not allow us in Northern Ireland even to consider raising the threshold. I cannot tell businesses in Strangford or across Northern Ireland that it could be an option.

Some argue that there are benefits to retaining the VAT thresholds. Research undertaken for HMRC in 2016 found that 20% of unregistered businesses that were trading close to the VAT threshold had taken action to remain below it. Of those businesses, almost half said they had closed their businesses for part of the year to avoid having to register for VAT. One in five said they had turned down work, which was an indication that they could not grow as they wanted to because of the restriction. That strongly suggests that a significant number of businesses actively manage their turnover in order to stay below the VAT registration threshold. Lowering the threshold would prevent businesses from suppressing their trade in that way, which would in turn encourage economic growth.

[Mr Gregory Campbell]

Does my hon. Friend agree that in recent years, because of inflation, even small businesses in the retail trade that try to maintain a level just below the threshold find that they must pass on rising prices to the consumer? That means they will inevitably come to or above the threshold, and even an attempt to keep below it will often fail.

[Jim Shannon]

My hon. Friend always intervenes with words of wisdom and understanding. Perhaps the Minister will respond to that.

There is little point in Northern Ireland MPs discussing this issue, unless the discussion involves the revocation of the Northern Ireland protocol and each aspect of European interference. I ask the Minister sincerely, respectfully and honestly to take back to the Cabinet the circumstances of the Windsor framework, to ensure that Northern Ireland traders can have the very same options as those in England, Scotland and Wales.

--- Later in debate ---

[James Murray]

I would typically ask businesses’ permission before I named them in the House of Commons, but I can reassure hon. Members that in conversations with businesses in my constituency, or indeed across the country in my role as a Minister, they understand the difficult decisions we took to restore stability to the public finances and to the economy. That is not to pretend for a moment that those decisions were not difficult and do not come with consequences, but most businesses I speak to recognise our difficult inheritance from the previous Government, and the importance of restoring stability to the public finances as an essential prerequisite for investment and growth.

What is most important is working hand in hand with businesses—whether they are small businesses in our constituencies or large businesses that operate across the country—and putting through the reforms that we know are needed. That includes making sure that the planning system is reformed, that the National Wealth Fund supports their investment, and that we are investing across the country to ensure there are jobs and growth in every part of the UK. That is what we are focused on, working in partnership with businesses, because we know how important that is.

[Jim Shannon]

Irrespective of the Windsor framework and the protocol issue, I understand that experts and businesses have suggested that the VAT threshold should be £250,000. The hon. Member for Inverness, Skye and West Ross-shire (Mr MacDonald) referred to the fact that that would enable businesses to perhaps employ one or two apprentices or extra people in their companies, and help them to focus on a strategy for growth, which I know the Minister is committed to. Are there any circumstances in which the Minister would consider a £250,000 threshold, because of the benefits that it would clearly bring to all businesses in the United Kingdom?

[James Murray]

I thank the hon. Gentleman for his question. He referred to the impact of the Windsor framework, which as he correctly pointed out, imposes an upper limit of just over £90,000 on the threshold in Northern Ireland. The Windsor framework is therefore relevant to the threshold in Northern Ireland and, by extension, to the Government’s decisions in Great Britain as well. The debate is becoming slightly wider than the question about the VAT threshold, but I can understand why that is the case. The VAT threshold—in fact, VAT as a whole—is only one of the factors in the landscape that businesses face.

Although we recognise that we have taken some difficult decisions on employer’s national insurance contributions, as I said earlier, the important point to focus on is the stability that those decisions have brought to the public finances and that they have put our public services back on their feet. Many businesses that I speak to recognise that they need their workforce to be healthy and to be able to get on a train and get to work.

Businesses need people who are coming out of school to be trained and to have the right skills to access the jobs of the future. They need the Government to create the right environment for growth, because private sector businesses will drive growth and create wealth and prosperity across the country. Businesses want a partner in Government who will provide the infrastructure, reforms and investment to enable them and everyone across our country to flourish. That is the wider context in which this debate takes place.

This debate has mostly been about the VAT threshold. It has taken a wide definition of the VAT threshold and its connected policies, but I understand why: the threshold sits within a wider context that affects small businesses. We all agree that small businesses are at the heart of all our local communities and economies, and we all want them to thrive. That is why the Government have taken steps to ensure that the tax system supports them. We have doubled the employment allowance, increased the small employers’ compensation rate, frozen the small business multiplier, introduced permanently lower business rates for smaller retail, hospitality and leisure businesses from next year, and committed to maintain the small profits rate and £1 million annual investment allowance.

The industrial strategy, published yesterday, goes even further to support small businesses, including by announcing the creation of a new business growth service that will streamline access to Government support, advice and funding for small businesses. The VAT threshold strikes a balance between keeping the majority of businesses out of VAT altogether while ensuring that we can support public services and maintain fiscal responsibility.

I thank you again for your chairmanship, Mr Vickers. I thank all hon. Members who have contributed to the debate and, in particular, I thank the hon. Member for Mid Leicestershire for securing the debate.

Public Sector Pensions: McCloud Remedy

Jim Shannon Excerpts

Thursday 19th June 2025 Commons Chamber

[Christine Jardine]

I thank the hon. Member for raising a very good point, which I will come to later. I agree completely; this has been particularly difficult for many people in the light of the crises we have faced in recent years, with the soaring cost of living and sky-high energy bills.

This is what has happened to my constituents in Edinburgh West who have come to me with their issues with the administration of the remedy—not the remedy, but the administration of it—and the possible future impact on other pension schemes. One of my constituents who was affected is a retired police officer who served 25 years. His pension scheme was forcibly changed in 2017 to the CARE—career average revalued earnings—scheme, which was found to be discriminatory. He retired in February 2023 with his 25% lump sum, on the assumption that the remedial scheme would be in place by October that year. He estimates that he is now owed more than £30,000 in terms of both his commuted lump sum from the new scheme and the lower monthly pension. He is also one of thousands of immediate detriment officers still waiting for their remediation letter from the pension authorities, despite claims that the number of retired officers receiving these has accelerated, including in Scotland.

Another constituent started working for Lothian and Borders police, as it was, in 1996 and retired in 2022, knowing he would only receive his pension for his service between 1996 and 2015, while the remedy was calculated. He was told at the time that he would receive his remediable service statement by April 2025, three years after his retirement. He also estimates a loss in pension income of more than £30,000, given that seven years of his service to our community was not counted when he first retired.

A third constituent of mine has raised a possible issue that he faces when retiring with an NHS pension. The Government’s approach to NHS pension remedies means that pension growth will be calculated under an older scheme from 2008, even if he believes this rollback leaves those in the middle of their careers vulnerable to artificial breaches of the annual pension allowance and significant income tax charges because of the set-up of the 2008 scheme used for calculation.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Member on securing the debate. I spoke to her beforehand to ascertain her focus, which is clearly on the McCloud remedy. The McCloud remedy will have implications on tax for some members, with some needing to pay more tax—she has outlined three—and others being entitled to a refund. My constituents in Strangford are experiencing the same issue as those in Edinburgh West and are in a similar position of uncertainty. Does she agree that discussion with financial advisers is essential, and for those who do not have access to financial advisers, the employer—the national health service, in the case of my constituents—must provide workshops to ensure that workers can understand what their choice will mean in reality?

[Christine Jardine]

The hon. Gentleman raises a very good point. This issue has affected all our constituents, in a different way. His is exactly the sort of point that I hope the Minister may be able to address.

All the cases that we have mentioned show the impact that the remedy process has had on people who have dedicated their lives to serving our communities. It is unfair and must be tackled. In written answers to myself and other hon. Members, Ministers have said that it is up to individual pension schemes and their managers to implement the remedy rather than the relevant Government Department, but that seems to allow the schemes to delay, or leaves them without the resources and support that they need to process claims at pace. Will the Minister outline how the Government work with these authorities to ensure rapid delivery of remedial pay?

What steps will the Government take to ensure that pension authorities can also deliver RSS notices to speed up the process of calculating and awarding remedial pay? That is particularly important for police pensions, as there appears to be a severe backlog in issuing those notices to retired officers to allow them to make their choice under the law. That is leaving my constituents in Edinburgh West and others facing years of further uncertainty on their finances, as the hon. Member for Strangford (Jim Shannon) referenced, and losing out on money that they are entitled to for their work.

As policing is devolved in both Scotland and, as the hon. Gentleman knows, in Northern Ireland, how are the Government working with the devolved Administrations on these pension schemes to share best practice across Departments, provide increased resource and finally give these public servants, who have served our communities, taught our children and kept us safe for so long, the safety, security and financial stability that they deserve for their retirement? Surely that is what they are entitled to.

UK Infrastructure: 10-year Strategy

Jim Shannon Excerpts

Thursday 19th June 2025 Commons Chamber

[Darren Jones]

I thank my hon. Friend, who knows that this Labour Government at Westminster have given the Scottish Government the money to get on with the job. They have no excuses left for not delivering for the people of Scotland. We will continue to partner with and support the Scottish Government as best we can, but ultimately the SNP-led Government in Scotland have to change their ways, and if they cannot, the people’s only choice will be to vote for a new direction under Labour next May.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister very much for his answers. He is always incredibly pleasant, and we appreciate that. Can he confirm that the 10-year strategy incorporates the need to enhance connectivity throughout the whole of the United Kingdom of Great Britain and Northern Ireland? In particular, may I ask him about flights between Belfast and other major UK cities, which are becoming more costly by the day?

[Darren Jones]

I thank the hon. Member for his question. He will know that the Government have renewed our commitment to regional airport capacity, with plans for a national policy statement to be published in due course. I am sure the Transport Secretary and her team are listening to him on the increasing costs for his constituents of those flights, which we would of course like to reduce, if we can.

Bank Closures and Banking Hubs

Jim Shannon Excerpts

Thursday 5th June 2025 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Member for Blyth and Ashington (Ian Lavery) on setting the scene and on his introduction of the issue. As an MP for an area that has been hard hit by the removal of 11 banks, first in rural villages and now increasingly in even the main towns of Strangford, the issue is incredibly important. We need the regulation of access to banking services in legislation and to stop the drain towards online and city-centre banking only.

Millions of people in the UK still rely on cash day to day; in fact, some 1.1 million people in the UK remain unbanked and rely entirely on cash, while more than 8 million adults report that they would struggle to cope in a cashless society. A YouGov survey found that nearly 28% of small businesses use cash at least weekly. The British Retail Consortium has shown a rise in the use of cash for the second year in a row to 20% of transactions in 2023, as more and more people use cash to manage their budgets in a difficult economic environment.

While closing branches, banks have managed to increase their profits by some £2.5 billion. It is clear where their focus is. However, once the banks are closed and the profits are allocated to shareholders, how will they continue to up the profits? What services will be removed next? The percentage of branch closures is lower in larger and medium-sized towns and highest in villages and smaller communities, at 50% and 70% respectively.

[Sir John Hayes]

That is why the Link criteria need to change, is it not? The trouble is that rural areas are disproportionately damaged by the fact that the population size is not big enough. People cannot get access to banking in The Deepings, Long Sutton, Donington and elsewhere in my constituency. I am sure it is the same in the hon. Gentleman’s.

[Jim Shannon]

The right hon. Gentleman is absolutely right; that is replicated not just in his constituency and mine, but probably in those of everyone here today. Those in rural areas are twice as likely as those in urban areas to depend on their local post office branch for cash and banking services. With 11 banks closing and two banking hubs opening, we depend more than ever on the post office. We have credit unions but what we can do with them is very limited, despite being very welcome.

While bank networks decline, the Post Office continues to provide free and convenient access to cash through its branch network. However, the branch in Newtownards in Strangford is set to close—there is potential for that to happen, anyway—and that is absolutely devastating because the range of services that are not available in the local garage, which has a sub-post office, will only grow. Even the Post Office must therefore rethink its obligations.

Through the banking framework that the Post Office has with 30 UK banks and building societies, postmasters support over £3 billion in withdrawals and deposits each month, providing a trusted, convenient face-to-face service at the heart of communities. However, large branches such as the one in Newtownards must be left open if we are truly to have a full service.

According to Age UK, 27% of over-65s and 58% of over-85s rely on face-to-face banking. Nearly a third—31%—of people over the age of 65 said they were “uncomfortable” with the idea of banking online. The age sector must be protected, and the way to do that is to require legislatively a better minimum service from banks and post offices that are trying to fill the gap but are pulling back.

So what do I want? I want banks to be required through legislation that they deliver for their customers. I want to ensure that the post offices, including the main post office, are in place in my constituency and to see opportunities through credit unions. I look to the Minister to outline how the Labour Government will protect access to cash, face-to-face banking and a full-service post office in each area.

Regional Growth

Jim Shannon Excerpts

Wednesday 4th June 2025 Commons Chamber

[Darren Jones]

I thank my hon. Friend for welcoming the £2 billion of investment announced today for the east midlands. I have been on a number of visits to her region, including with Labour’s brilliant Mayor Claire Ward, who has made a very strong case for the investment being announced today. It shows the difference a Labour mayor can make. I also pay tribute to my hon. Friend and her colleagues from her regional group, who have campaigned as vociferously here as Claire Ward does from her mayoral office in the east midlands?

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for his answers. Regional growth is an imperative for the whole of the United Kingdom of Great Britain and Northern Ireland, and I am pleased that he is expanding the horizons for areas considered for further funding. I am also pleased to announce in the Chamber today news of a previous scheme initiated by the Conservatives and delivered within the time of this Government for the Ards and North Down local council: the Queen’s Parade development. It was one of the regional schemes that were delivered, and £9.8 million was set aside by Westminster for that project. It was signed and sealed, and the project is going ahead. It is estimated that some £70 million of regeneration will come off the back of it, so whenever the Government spend money here, they can be assured that the benefits are significant. The Minister has also hinted at the possibility of other moneys coming through. What commitment can he give to ensuring that coastal communities across all of the United Kingdom of Great Britain and Northern Ireland can apply to similar schemes to improve the beauty and tourist attractions of all our coastal towns and centres?

[Darren Jones]

I thank the hon. Member for continuing his work campaigning for Strangford and for Northern Ireland in general. As he knows, details of funding for the Northern Ireland Executive will be announced at the spending review next week, building on the back of significant increased investment. He is right to say that investment in transport projects opens up opportunities for new housing, new jobs and new livelihoods. I recognise that the Northern Irish economy is one of the best performing parts of the United Kingdom, and we want to continue to support that in the future.

Business Rates Relief: High-street Businesses

Jim Shannon Excerpts

Wednesday 4th June 2025 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a real pleasure to serve under your chairship, Ms Jardine. I thank the right hon. Member for Stone, Great Wyrley and Penkridge (Sir Gavin Williamson). He outlined the attractions of his constituency, and I will do something similar. There will then be a choice for everyone here: which is better? I jest—the right hon. Gentleman’s constituency is lovely.

In a world of online convenience, the role of the high street is ever evolving, but the need to ensure that it is worth while for a business to retain a high street presence has remained. The fact is that the costs of energy, heating and lighting a premises, water and insurance—all those hidden costs—are rising and profit margins are steadily decreasing. The rise in national insurance contributions has put additional pressure on businesses that hire staff, which many can simply no longer stand.

I am pleased to see the Minister in his place. He is a very convivial man, and he never puts across his point of view in a way that offends anyone. I congratulate him on that, and I know that he will try to answer our questions on this issue. High street businesses and business relief are incredibly important.

I am very fortunate to have represented Strangford as an MP since 2010, as an MLA before that and, going back to 1985, as a councillor. I have seen many changes in the high street—lots of things happening and new businesses coming—but one of the cores we have is family businesses, which the right hon. Member for Stone, Great Wyrley and Penkridge referred to. I will mention some of them for the record. Wardens has been there for 125 years. We also have Knotts, another family business. We have local family butchers like Carnduff’s and Mawhinney’s, which have been there for the best part of my life, and local bakeries. The clothes shops are all family-owned. There are very few businesses like KFC and so on—those are all out of the town. The town centre is perhaps unique.

We are fortunate to have a number of restaurants and pubs. The Parlour pub and restaurant dates back to 1860—not many restaurants or pubs date back that far, but we have one. We also have Roma Hamill’s and Rice’s—again, family pubs and restaurants in the centre of town—and we have developed a coffee culture. There is only one thing we are missing in Conway Square in Newtownards, where everything looks idyllic: if the sun is there, Ms Jardine, you could be forgiven for thinking you were in the Mediterranean, but if it is not there, you might have a different opinion—as the rain belts down on you and reminds you that we are probably one of the wettest places in Europe.

I am thankful that businesses have evolved. Excel, for instance, has increased its online sales but committed to retaining its high street presence. That is the point I want to make. Older shop owners have moved on, and their families have decided it is no longer viable to have a shop on the high street and have gone online. Online is good, and I want to see it, but I want to have family businesses on the high street. Excel is a family business. Some 65% of their trade is online, but 35% is in the shop.

It has never been harder to have a shop. Bills are rising, and many in Northern Ireland cannot order things from the mainland. Retail NI has highlighted these concerns. It has said that increases in the cost of business in April are the perfect storm. Some 74% of Retail NI members indicate that they will reduce their number of employees, 86% say that they will cut back on their expansion plans and 96% say that more must be done to support local business and to deliver.

We need our local heart back, and the Minister is the perfect man to make sure we get it. We look forward, with expectation, to his answers and to hearing how he will ensure that our high streets are saved right across this United Kingdom of Great Britain and Northern Ireland.

Inheritance Tax: Family-owned Businesses

Jim Shannon Excerpts

Tuesday 3rd June 2025 Westminster Hall

[Susan Murray (Mid Dunbartonshire) (LD)]

I beg to move,

That this House has considered the impact of Inheritance Tax on family-owned businesses.

It is a pleasure to serve under your chairship, Sir John, and a privilege to lead this debate on a matter of real consequence to our economy. I begin by paying tribute to the extraordinary contributions that family-owned businesses make across the country, not least in my own Mid Dunbartonshire constituency. They are not just economic actors; they are part of the fabric of our communities. They offer good local jobs and apprenticeships, sponsor local sports teams, support local charitable activities, and keep our high streets and industrial parks alive with character, energy and local pride.

According to the Fraser of Allander Institute, in 2025 family-owned businesses are in turbulent and uncertain times. They are facing national insurance increases, with many scaling back plans for workforce expansion and recruitment as a result. The latest quarterly economic indicator from the Scottish Chambers of Commerce network presents a stark picture, as businesses face pressure that threatens to derail growth, investment and competitiveness. Taxation is now the No. 1 concern facing Scottish businesses.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Lady on securing this debate. She is absolutely right to highlight the issue of taxation. Does she agree that taxing businesses at 20% based on their value at the time of the owner’s death cannot possibly take into account the owner’s personal input into the business, and leaves a situation that can run a successful business into the ground? There is only so much that one person can be taxed before the burden is too great, and the taxation the Government are pushing is definitely going to destroy the farming sector.

[Susan Murray]

I thank the hon. Gentleman for raising that issue; I completely agree.

The Centre for Economics and Business Research found that nine out of every 10 privately owned businesses in the UK are family owned, and that they provide employment for nearly 16 million people and contribute more than £200 billion in taxes annually.

Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 20th May 2025 Commons Chamber

[Torsten Bell]

I certainly can. Our reforms to the local government pension scheme will support local investment in every part of England and Wales. Our defence spending plans will be felt on the ground—total defence spending in the west midlands totals £1.6 billion a year. We are building reservoirs again, including one in the west midlands. We are also getting the country trading once again, including businesses in Tamworth, where PI-KEM, a specialist chemical supplier, recently won a major export order, with £100,000 in UK Export Finance support. Britain, and Tamworth, are open for business.

[Jim Shannon (Strangford) (DUP)]

I want to ask about 18-year-olds, who are just starting off, being encouraged to take out a pension. Whenever I was 18, my mother took me down to see John Thompson, the pensions man in Ballywalter, and he said, “You’re going to take a pension.” I asked, “What for, Mum?” She said, “You’re taking a pension.” So I took the pension. Does the Minister agree that what everybody really needs is somebody like my mother to encourage them to take a pension?

[Torsten Bell]

I did not know where that was going, but I know that I speak for everybody in the House when I say that the whole country needs someone like the hon. Gentleman’s mother.

Speaker’s Statement

Jim Shannon Excerpts

Tuesday 13th May 2025 Commons Chamber

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

Further to that point of order, Mr Speaker. I first knew Sir Roy Stone when I became leader of my group after the 2017 general election. He did, in fact, pass views on the Chief Whips of the time, but I think they are probably best kept to myself for now, because some of them are in the Chamber. He was immensely supportive, and as the leader of a very small group, I learned so much from him. It was the first time that the group had had meetings with the Chief Whip. I speak on behalf of a small party, and Sir Roy’s respect for Parliament, and for the presence of small parties in it, was evident. He felt that we had a role to play, and he enabled us to play that role very effectively.

My lasting memory of Sir Roy was from just after he left. A member of staff, Fflur Elin, could play the harp. Sir Roy found that out, and nothing would do but for Fflur to bring in said harp to play for him. It has been an honour to know him, and people’s recollections of him today tell me that he had immense influence on all of us here.

[Jim Shannon (Strangford) (DUP)]

Further to that point of order, Mr Speaker. On behalf of the Democratic Unionist party, I want to convey to the family of Sir Roy Stone our deepest condolences at this time of tragedy and grief. To serve under a number of Prime Ministers and Chief Whips is no easy task, but he was always fair and impartial. He contributed loyally and with great wisdom. I would not like to say anything against any of the Chief Whips in my party, but I have probably challenged them all, and to be perfectly honest, I probably still do. Sir Roy’s advice was much sought after and liberally given. He set a standard for others to follow, and to admire from a distance. It is always good to cite the Bible at these times; he has run the race, he has fought the good fight and there are many crowns laid up for him in heaven. Thank you, Sir Roy, and God bless all the family at this time.

[Mr Speaker]

These really have been fitting tributes to Sir Roy Stone. He will always be in our thoughts and memories because of what he did for this House. I know that the Clerks feel the same way.