Budget Resolutions

Debate between John Lamont and Greg Smith

Thursday 27th November 2025 Commons Chamber

[John Lamont]

My hon. Friend is absolutely right. The intention may have been to force overseas investors, trust funds and others out of the farming sector, and to attack big landowners, but the tax is doing the complete opposite: it is destroying the family farm sector, forcing tenant farmers out, and seriously impacting on our food security ambitions.

The family farm tax is yet another promise broken by the Chancellor, who gave no indication before the last election that Labour would introduce it. The supermarkets agree: Tesco, Sainsbury’s, Morrisons, the Co-op, Marks & Spencer and many more have expressed their concern about how the tax will impact farmers and our nation’s capacity to produce our own food. I grew up on a farm, so I understand this. The consequences of the Chancellor’s failure to reverse this cruel tax will be catastrophic for our rural communities.

Two weeks ago, I visited dozens of small businesses across the Scottish Borders—corner shops, greengrocers, butchers, manufacturers, gift shops and many more. The same issue came up at almost every single one: the extremely tough business conditions just now. The jobs tax is forcing many of them to delay hiring decisions, or even lay off staff, and the additional red tape is forcing good employers to jump through totally unnecessary hoops. The average cost of a member of staff has surged by almost £1,000 a month, thanks to the jobs tax and the Government’s Employment Rights Bill. To make matters worse, because of the state of the economy, customers have less to spend on goods and services. It is all adding up to be an economic nightmare.

The Chancellor’s decisions are pushing our economy into a tax doom loop: higher taxes will fund more spending, which harms our economic growth and— surprise, surprise—means that the Chancellor receives lower revenue, and so once again comes back to ask for more tax rises.

[Greg Smith (Mid Buckinghamshire) (Con)]

I entirely endorse the argument that my hon. Friend is making. The big punishment in yesterday’s Budget was the increase in taxation on dividends. That says to our wealth creators and entrepreneurs—the people who create jobs—“Don’t bother.”

[John Lamont]

My hon. Friend is absolutely right. The Budget creates no incentives for people to invest and take the risk of setting up and growing a business. It sends out all the wrong messages about what we want in a country that has traditionally been full of entrepreneurs. Because of the doom loop that the Chancellor has created, it will always be hard-working businesses and families who pay the price for her economic failure.

The Chancellor could have made much better choices in her Budget. She could have saved £47 billion, including £23 billion from welfare, avoiding the need to increase taxes in this way altogether. She could have introduced a cheap power plan to bring down energy costs for homes and businesses. But the Chancellor has not listened. She has not learned from the mistakes she made in last year’s Budget. This Labour Government promised economic stability, but this Budget does nothing to make that a reality, which is why Conservative Members oppose it so strongly.