Christmas Adjournment

Jim Shannon Excerpts
Thursday 19th December 2024

(4 days, 18 hours ago)

Commons Chamber
Read Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
- View Speech - Hansard - -

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
Sammy Wilson Portrait Sammy Wilson
- Hansard - - - Excerpts

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 Portrait Jim Shannon (Strangford) (DUP)
- Hansard - -

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

(2 weeks, 5 days ago)

Commons Chamber
Read Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Victoria Atkins Portrait Victoria Atkins (Louth and Horncastle) (Con)
- View Speech - Hansard - - - Excerpts

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 Portrait Jim Shannon (Strangford) (DUP)
- Hansard - -

Will the shadow Minister give way?

Victoria Atkins Portrait Victoria Atkins
- Hansard - - - Excerpts

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 Portrait Victoria Atkins
- Hansard - - - Excerpts

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 Portrait Jim Shannon
- Hansard - -

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 Portrait Victoria Atkins
- Hansard - - - Excerpts

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
Damian Hinds Portrait Damian Hinds (East Hampshire) (Con)
- Hansard - - - Excerpts

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 Portrait Jim Shannon (Strangford) (DUP)
- Hansard - -

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 Portrait Damian Hinds
- Hansard - - - Excerpts

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
James Murray Portrait James Murray
- Hansard - - - Excerpts

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 Portrait Jim Shannon (Strangford) (DUP)
- Hansard - -

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 Portrait James Murray
- Hansard - - - Excerpts

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
Jacob Collier Portrait Jacob Collier (Burton and Uttoxeter) (Lab)
- View Speech - Hansard - - - Excerpts

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 Portrait Jim Shannon (Strangford) (DUP)
- Hansard - -

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 Portrait Jacob Collier
- Hansard - - - Excerpts

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.

Financial Services: Mansion House Speech

Jim Shannon Excerpts
Monday 18th November 2024

(1 month ago)

Commons Chamber
Read Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Tulip Siddiq Portrait Tulip Siddiq
- View Speech - Hansard - - - Excerpts

My hon. Friend will know that I can never resist an ice cream, so I probably will visit after all. Places such as JP Morgan, which employs 4,000 people in the financial services industry, are vital to us. One of the things that the Chancellor’s speech built on was the significant steps that the Government are already taking to enhance the competitiveness of our financial services sector. We want to look at the biggest changes to the UK’s listings regime in more than three decades and—my hon. Friend will be familiar with this—deliver the final stages of the post-crisis capital reforms to banks. With our financial services growth and competitiveness strategy, which I hope my hon. Friend will write to us on, we want to give the industry certainty and the confidence to invest. That is the main thing that the financial services sector wants right now, and people in Bournemouth will probably agree with that. I look forward to that ice cream.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
- View Speech - Hansard - -

I thank the Minister for her statement. We must welcome the news that London edges closer to New York as a financial hub. However, the Minister is aware that growth happens only if we attract investment. I believe that the decision to pool pension funds into larger investment vehicles is a bold one, yet the Chancellor must ensure that guarantees are in place, so that the mega-pool of pensions does not go down the drain, and that guardrails are in place to safeguard the nation’s pension pots.

Tulip Siddiq Portrait Tulip Siddiq
- View Speech - Hansard - - - Excerpts

I reassure the hon. Gentleman that boosting return for savers is at the very heart of this agenda, which is why we are pursuing this pensions review. We want these reforms to increase security and boost people’s pension pots, and we want to unlock about £80 billion of productive investment. The Government’s reforms are already in the pension schemes Bill, and they could boost a typical defined contribution saver’s lifetime pension pot by £11,000. I do not want the hon. Gentleman to worry, because we have our eye on how to protect pensioners and savers.

Oral Answers to Questions

Jim Shannon Excerpts
Tuesday 29th October 2024

(1 month, 3 weeks ago)

Commons Chamber
Read Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Rachel Reeves Portrait Rachel Reeves
- View Speech - Hansard - - - Excerpts

All of the above. That is why my hon. Friend is in his place and Conservative Members are on the Opposition Benches.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
- View Speech - Hansard - -

If the Chancellor wants to increase investor confidence, the thing to do is help small and medium-sized enterprises. Tomorrow she will have the opportunity to do that. What will be done to help them? In Northern Ireland, 85% of businesses employ 10 or fewer employees. If she helps the SMEs in Northern Ireland, that will increase employment.

Rachel Reeves Portrait Rachel Reeves
- View Speech - Hansard - - - Excerpts

I know that the hon. Gentleman is a proud supporter of businesses big and small in his constituency and across Northern Ireland. I will set out more detail in tomorrow’s Budget, including on business rates, but I recognise how important it is for us to support small businesses, so that they can grow and create jobs right across the United Kingdom.

Fiscal Rules

Jim Shannon Excerpts
Monday 28th October 2024

(1 month, 3 weeks ago)

Commons Chamber
Read Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Darren Jones Portrait Darren Jones
- View Speech - Hansard - - - Excerpts

I thank my hon. Friend, and I thank his constituent for putting her trust in this Labour Government. As the Prime Minister said today, this Government will “run towards” the problems, as opposed to running away from them, as the Conservative party did. That will mean difficult decisions at the Budget on Wednesday to deal with the mess that we inherited, to reset public finances and to be able to start to deliver our manifesto. But this Government will take those decisions and we will announce the detail on Wednesday.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
- View Speech - Hansard - -

I thank the Minister for his statement. I want to ask what the legacy of this will be. Will he further outline how the change to the fiscal rules to allow for more efficient borrowing will not simply pass more debt on to, for example, my six lovely grandchildren and everybody else’s grandchildren, who already face a scaled-back welfare system and increased costs of living before they even earn their first pay cheque? How will the Minister’s so-called guardrails not simply be barriers to future generations owning their own homes and making ends meet? I am thinking of the ones who come after.

Darren Jones Portrait Darren Jones
- View Speech - Hansard - - - Excerpts

I thank the hon. Member for his question. He and his constituents will know, as much as mine do, that the problem for this country before the election was that the last Government had to borrow each month to pay for bills that they did not have the money to pay for, and that they made a whole list of promises across the country that they knew they could not pay for. That is why we have the £22 billion black hole, and why our first fiscal rule is that day-to-day spending will be paid for from tax receipts by the Exchequer. We will put the public budget back into surplus so that we are not in a doom loop of borrowing and borrowing just to keep ahead of ourselves each month. Where the Government do borrow, we will do so for productive investment to modernise our public services and to get growth back into our economy.

Business Property Relief and Agricultural Property Relief

Jim Shannon Excerpts
Thursday 17th October 2024

(2 months ago)

Westminster Hall
Read Full debate Read Hansard Text Read Debate Ministerial Extracts

Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.

Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.

This information is provided by Parallel Parliament and does not comprise part of the offical record

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
- Hansard - -

It is a pleasure, as always, Dr Huq, to serve under your chairship. It has probably been more than once this week but, none the less, it is lovely to see you in your place. I thank the hon. Member for Gordon and Buchan (Harriet Cross) for setting the scene so well and giving us all an opportunity to make a contribution on an important issue. It is an honour to speak on a subject that is not just a matter of fiscal policy, but is of vital importance to the very backbone of the United Kingdom. I declare an interest as a farmer, landowner and member of the Ulster Farmers Union for some 40 years. I joined the Ulster Farmers Union not because it was in Northern Ireland, but because the insurance premiums were very cheap. They are maybe not quite as cheap now, but then no insurance is as cheap now as it is used to be, and that is a fact.

I can attest to the importance of agricultural property relief in ensuring the sustainability and longevity of farming enterprises across our great nation. In my constituency of Strangford, farming is not just an industry, but much more—it is a way of life. It is about generations of families working the land, providing food, maintaining the landscape and contributing to the rural economy. More than that, it is about stewardship, which the hon. Member for Gordon and Buchan referred to in her introduction. It is really important that we focus on that. Farmers are custodians of the countryside, caring for the environment while ensuring food production to feed the nation. That means everyone; not just the farmers, but everyone who lives in this great nation. Agricultural property relief plays a critical role in maintaining that balance, allowing farming families to pass on their land and business without crippling tax burdens.

Agricultural property relief is one of the key supports for farming families across the United Kingdom, and in Strangford it is essential. In Northern Ireland, agriculture is responsible for some £501 million in income, as of 2021—a substantial 8.3% increase from 2020. It is no exaggeration to say that agriculture is at the heart of our economy, and everyone has said it. Agriculture is critical to everyone. Not a person who has spoken so far has not said that about our rural community.

My constituency of Strangford is home to a vibrant agrifood sector that employs thousands of people through major employers such as Willowbrook Foods, Lakeland Dairies and Mash Direct. Those companies are household names. They are family businesses that started as farms and then diversified—something that the right hon. Member for Orkney and Shetland (Mr Carmichael) referred to. They have ensured the sustainability of our rural community. Without APR, those family-run enterprises could be forced to sell land and assets just to meet inheritance tax liabilities, potentially dismantling businesses that have been built up over generations. This issue is critical to the future of my constituency’s farming community, and to those businesses.

Agriculture is not just a business; it is the fabric of rural life. We often talk about food security, environmental stewardship and rural economies, and yet without the right fiscal support, those pillars of our country are put at risk. That is why this debate is so important. APR helps farmers to plan for the future, ensuring that the next generation can take over the family farm without being forced into financial hardship. It allows them to focus on what they do best: producing high-quality food, maintaining biodiversity and contributing significantly to local economies.

We have a rich agricultural tradition. Our dairy farmers, sheep farmers, pig farmers and vegetable growers are among the best in the world and take immense pride in their work. Lakeland Dairies, which employs more than 250 people in my constituency, and Mash Direct, which employs more than 230, have been the cornerstones of our agrifood economy.

Let us not forget the Comber early, a potato with protected geographical indication status, which means it is recognised across Europe for its unique quality. It is grown right there in the fields of Strangford. Those enterprises are not just businesses; they are a way of life. It is about not just tradition, but innovation. Innovation is part of what farmers do. They are not just the boys who plough the fields and scatter the seed—that is almost like the hymn “We plough the fields and scatter”.

Let us take Mash Direct, for example. A family-run business that began in a kitchen 20 years ago now supplies some of the largest retailers in the United Kingdom, including Asda and Spar. The business is forward-thinking. It has installed solar panels and invested in sustainable practices, all while providing hearty, healthy food at affordable prices. Lakeland Dairies, meanwhile, exports its milk products across the world and contributes to the economy. These are family businesses that started off in a very small way and have grown and created jobs. They are success stories, and we must ensure that the tax system supports their continued growth and does not hamper them.

This is why I am calling on the Government to ensure that agricultural property relief remains intact and that it is not reduced or removed as part of any future tax policy. We must give farmers the confidence to invest in their businesses, to innovate and to continue producing high quality food for our nation. The very last thing we need is for farms to be sold off piecemeal because families cannot afford the tax burden. Let us be clear. APR is not a loophole for the wealthy; it is a lifeline for farming families who are working hard day in and day out to maintain their land and their livelihoods.

In Strangford, where agriculture is not just a part of our economy but a part of our identity—it is who we are—support is vital. As we look to the future of UK farming post Brexit, with new trade deals, changing subsidy regimes and heightened environmental targets, we must ensure that the fiscal framework surrounding agriculture is robust and supportive. APR is a crucial part of that framework, allowing farmers to pass on their businesses, invest in new technologies and ensure that rural communities remain vibrant and sustainable.

Farmers in Strangford and across the United Kingdom are already taking steps to reduce emissions, embrace low-emission technology and promote biodiversity. However, those efforts cannot come at the cost of financial viability. Many of the improvements needed to reduce emissions, such as upgrading farm infrastructure, require significant investment, as the hon. Member for Gordon and Buchan said. She set the scene very clearly. The money that is made must go back into the farms so that they can move forward.

APR helps to ensure that farmers have the financial security to make those investments. Without it, we risk failing not only our farming communities but our environmental goals. I say this to the Minister kindly—he knows that I do not criticise or give people a hard time, but I do make a point. The Secretary of State for the Environment has made it clear that Labour is committed to achieving environmental goals. The farmers whom I and others here represent are also committed to achieving those goals, but that can only happen if the money comes through for that purpose.

I want to mention the need for better protection of farmland from schemes such as solar farms and pylons, which can remove valuable agricultural land from production. While we must embrace renewable energy, we must also ensure that food production remains central to our land-use framework. There has to be a balance, as Members of both the previous and the current Government will understand. We need to strike the right balance between energy production and food security. Farmers should not be forced to choose between their livelihoods and environmental progress. Both things can, and must, go hand in hand.

I have spoken fairly quickly, and I think I have got more words in than anyone has ever done. Farming is at the heart of our nation, and agricultural property relief is at the heart of farming. Without APR, many of our farming families—those in Strangford and across this great nation—would face insurmountable challenges. The loss of that vital relief would be a blow not just to rural communities, but to our food security, economy and environment. Each of those is critical, so let us continue to back our farmers, protect our rural communities and safeguard our food security by maintaining agricultural property relief. I urge the Government to make that commitment and recognise that the future of farming in the United Kingdom of Great Britian and Northern Ireland depends on it.