Budget Resolutions

Debate between Jonathan Reynolds and Gregory Campbell

Wednesday 6th November 2024 Commons Chamber

[Jonathan Reynolds]

I ask the right hon. Gentleman to look at the detail of our plans. From the data held by the Treasury, we can plan for how many firms will be affected, and it is a very small number. In most cases, given the existing inheritance tax nil-rate band, especially where property is involved or where there is a transfer from one spouse to another in the inheritance chain, the allowance is so great that it is already considerably in excess of the average claim for relief in this area.

The right hon. Gentleman is talking about a very small number of firms at the very large end. I think the revenue can be raised in a way that protects the kind of family firms he and I want to see continue to thrive. We all know there are cases where, for instance, people advertise the sale of agricultural land or certain types of investments specifically to avoid inheritance tax, which is not right. That is not good for business. We have to recognise that these fair and proportionate changes will pay for the last Government’s spending commitments. The changes will always have a benchmark for international competitiveness, in a way that the right hon. Gentleman should recognise rather than scaremonger.

At the Budget, as a statement of intent for our new industrial strategy, we saw the Chancellor make the first of many down payments with multi-year funding commitments for these areas of our economy. There will be significant tax relief for our world-leading creative industries, up to £0.5 billion for a brand-new life sciences innovative manufacturing fund, and nearly £1 billion for our aerospace sector to fund vital research and development into jet zero technology, which will boost industries in the east midlands, the south-west and Scotland. There is also £2 billion for our automotive sector, ensuring that the next generation of electric vehicles are designed, developed and built right here in the UK.

At the same time, we recognise that our industrial strategy’s success rests upon working in partnership with mayors and multinationals, councils and CEOs, unions and academics. That is why this Government are championing local growth plans—growth plans for the long term—to be delivered by strong local political leadership, which will work together with the Government to create the right conditions for success.

Crucially, our new industrial strategy will be international from the start, taking learnings from the best of what has been achieved globally so that we enable businesses of all sizes and sectors to thrive in our market. To that end, it will work in lockstep with our trade strategy and our twin-track approach to trade, acceding to the comprehensive and progressive agreement for trans-Pacific partnership and negotiating deals with the Gulf Co-operation Council and India, all to the benefit of British business.

Unlike the previous Administration, we are also making it much easier for UK firms to do business in and with Europe. Although the Opposition might not want to hear it, the EU is not just our closest trading partner but is still our largest trading partner, by quite some margin, yet the previous Government’s adversarial approach to working with the EU—all that incendiary rhetoric—was not conducive to good business. We are changing course, aiming to remove unnecessary barriers to trade, so that British companies will be able to operate more easily in France, Germany, Italy and across Europe.

We are making real progress. Earlier this month, the Prime Minister and the President of the European Commission issued a joint statement to deepen our co-operation on the economy, energy and security. We have agreed to regular EU-UK summits to strengthen our connections in all those areas, including the close business and investment ties that connect our economies.

[Mr Gregory Campbell (East Londonderry) (DUP)]

On the sectors that will benefit, does the Secretary of State agree that the hospitality sector would benefit more from some honesty and openness? The Government announced a 6% increase for people on the minimum wage, many of whom are employed in the private hospitality sector, but while our constituents will pay for that, the Treasury will benefit by hundreds of millions of pounds, because almost all those minimum wage earners will become taxpayers overnight.