Farming and Inheritance Tax
Louise Jones Excerpts(2 weeks ago)
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James Murray
The data we did not have before the general election was the £22 billion black hole that the hon. Gentleman’s party left in the public finances. He knows that, because it is acknowledged by the Office for Budget Responsibility that the full information was not shared with it. It has said that its forecast would have been “materially different” had it known that that was the case. We have had to take a number of difficult decisions.
Louise Jones (North East Derbyshire) (Lab)
This talk of data reminds me that over 12,000 farmers and agribusinesses have gone out of business since 2010. Will the Minister reassure me about what we are doing to improve profitability in British farming?
James Murray
My hon. Friend is absolutely right to highlight the decimation of businesses during the Conservatives’ time in office. Businesses across the economy need stability, public finances on a firm footing and investment in our public services. That is what businesses across the country need to invest for the future and grow.
James Murray
I am going to make some progress. I am going to continue to explain how some of the other exemptions within the inheritance tax system will benefit people affected by this policy.
Louise Jones
Can the Minister confirm that in the case of farms worth several million pounds, any mortgageable value is not included for the purpose of inheritance tax? Might that explain the discrepancies in some of the figures that are being bandied around, in which I believe mortgages have not been taken into account?
James Murray
That is an important point. Looking at the pure asset value of farms does not tell us what their inheritance tax liability might be. As my hon. Friend rightly points out, any liabilities must be netted off against the value of any estate, and the ownership structure—the various nil rate bands, previous spousal transfers, giftings and so on—need to be considered.
Katie Lam
I could not agree more with the hon. Gentleman. My farmers tell me that these inheritance tax bills will take decades of profit to pay off, so they will keep doing the job that they were doing yesterday, but with a fraction of the cash that they had before—which was not a lot to begin with.
Finally, I want to address the idea that farmers can simply give farms away and live another seven years. It is incredible that the Government should introduce a tax in one breath and encourage people to avoid it in the next, and it makes a mockery of the whole policy. If it is true, then the tax will not raise any money for the Government, but instead increase bureaucracy and advisory fees for farmers. Mostly, though, for many people, it is not an option or it will not work. People have not been given enough time to plan for these changes. My constituent Ross grows hops in Tenterden. As he watched the Budget, his father, who is in his 70s, was suffering from sepsis and fighting for his life in hospital.
Especially in farming, our most dangerous industry, people cannot guarantee that they will live another seven years after having handed over the farm. Another of my constituents is in remission, having recently recovered from cancer. If the cancer returns, it is likely to be terminal. This constituent is in their early 50s. Are the Government seriously suggesting that my constituent should hand over, not just the farm, but the home that they live in to their teenage children?
Many of my farmers live in their farmhouses and are planning to work the rest of their days. They do not have pensions; they do not have plans that would allow them to spend the last decade of their lives—of course, it may be much more—no longer farming the land that they have farmed for the whole of their lives up until this point. Finally, to raise a point that seems to have been almost entirely ignored, doing this will incur eye-watering capital gains tax bills. For some of my farmers, it will mean hundreds of years’ worth of land revaluation that they similarly cannot afford to pay.
Louise Jones
Is the hon. Lady aware that the capital gains tax starts from the moment of a person deceasing, not from when they bought that land?
Katie Lam
What I have been told by my farmers, based on the tax advice that they have been given, is that the bills—and not just the inheritance tax on decades of profits—will be completely unaffordable.
Farming is hard. It is not like any other industry: it is a culture and a way of life. It is lonely, revenues are uncertain, profits are tiny and cash is tight.
Louise Jones (North East Derbyshire) (Lab)
All Governments have to make tough decisions. Faced with a £22 billion black hole, Labour has chosen to raise taxes on only the very wealthiest. The Conservatives’ record was instead to choose to place the burden on the poorest in society—those with disabilities and those who are very young. In fact, I am seeing that in real time in Derbyshire, as the Conservative leader of Derbyshire county council has chosen not to spend his time dealing with the disastrous recent Ofsted report on the sorry state of special education needs and disabilities provisions in Derbyshire affecting thousands of vulnerable children, or trying to deal with the terrible county finances which it is trying to plug by closing much-loved care homes, again leaving some very vulnerable people with an uncertain future. Where was he? He was marching with wealthy landowners down here in London. I ask the shadow Minister what she thinks first attracted various multimillionaires in various industries to suddenly discover a passion for farming and buy farms in their late middle age.
I had thought that the Conservatives would want to discuss the huge challenges facing our NHS, the cost of living crisis affecting so many of my constituents or their failed track record in delivering vital regional infrastructure; but no, we have had silence on those issues. What has got them out literally marching on the streets is a rush to defend multimillionaires. My constituents can see what is the No. 1 priority, and it is not the same as theirs. Let us be clear: retaining the status quo, for which the Conservatives are arguing, would see 7% of claimants receiving 40% of the relief. That is £219 million given to just 117 estates. Why should 117 of the richest get £219 million in tax relief, and not ordinary families?
One would have thought that, after such a profound rejection of their party’s record in government back in July, the Conservatives would have taken some time to listen to the electorate and learn. The electorate saw that this Labour party was different, and voted us in. Perhaps the Conservatives should take a closer look—and here I include the hon. Member for Perth and Kinross-shire (Pete Wishart). Many of my colleagues are deeply rooted in their rural communities, and I myself come from a family of farmers. In fact, I spent most of my family Sunday lunch listening to an in-depth monologue on SFI technical details, which was of course very welcome. While the Conservatives are rushing to defend the wealthiest in society, we in Labour will be focusing on what matters to rural communities: access to rural health facilities, a record £5 billion for farmers, a new commissioner for tenant farmers—which is fantastic—a new rural crime strategy, and protecting farmers from bad trade deals.
Coming from a family of farmers, I know a wolf in sheep’s clothing when I see one. However much the Conservatives bleat about standing up for farmers, their bushy tails and terrible record for farming over the past 14 years tell me otherwise. I will always fight for farmers, to improve farming incomes and to support farming communities. That is my priority, and it is the priority of this Government.
Employer National Insurance Contributions
Louise Jones Excerpts(2 weeks ago)
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Louise Jones (North East Derbyshire) (Lab)
A former Conservative leader once had the famous phrase,
“There is no magic money tree.”
Sadly, that is a lesson that Opposition Members have yet to learn. Let us be clear about the economic situation that we are facing. In July, when the Conservatives left office, the tax burden was at a 70-year high, and they left us with a £22 billion black hole in our public finances. This is their legacy and they must live with it: confidence in public services is at an all-time low, and the tax burden at an all-time high. They could not even deliver on their promises in my constituency. If they had chosen to invest the money needed into our NHS, they would have seen the benefits. If they had invested the money in our schools, they would have seen the benefits. If they had funded our armed services to take on the challenges of tomorrow, we would all see the benefits.
Instead, when I look at the primary care centre in Clay Cross, I see hard-working health staff let down by the former Government. When I look at Killamarsh junior school, again, I see hard-working staff and young children let down by this former Government. As I speak to my former Army colleagues, I see no improvement in the situation there either, thanks to the former Government. We must take action. It is our duty as a Government to take the hard choices necessary. I believe that in the long run, this is a positive and necessary step for our UK economy, public services and workforce. National insurance contributions are the backbone of funding for our essential services such as healthcare and pensions, and my voters chose that.
Kanishka Narayan
The Vale of Glamorgan, and Wales more broadly, is full of small and micro businesses. The Office for National Statistics and the OBR have both told us that most small businesses and micro businesses will be better off or the same as before. The Vale’s businesses get not only better public services but a good tax set-up. Does my hon. Friend agree that this is a great Budget and a great proposition for small businesses in the Vale?
Louise Jones
I could not agree more. I have heard from so many small business owners in North East Derbyshire who are so thankful for the changes that we are making to support them.
If we fail to make these decisions today, we risk the prospect of cuts to crucial services or an increased burden on future generations, which would fall on the most vulnerable in society.
Graham Stuart
The hon. Member talks about cuts to vital services. Does she agree that no one would think less of the Government if they were to take £3 billion or £4 billion out of the £22 billion for the NHS and ensure that social care, hospices, GP surgeries and the like do not lose out, to have a holistic and positive input into the health service rather than the disjointed one that we are at risk of right now?
Louise Jones
I am sure that the health team will listen to all and any contributions, and will make a decision.
The Labour Government refuse to balance the books on the backs of the poor, workers or people striving for a better life.
Louise Jones
I am going to make progress, as I know other Back Benchers would like to speak.
Instead of austerity mark II, we choose to invest in our services, our children and the people who fight every day to keep us safe. These increases will strengthen our public services, promote economic stability and invest in the future of our workforce. They are an investment in our long-term prosperity, and I fully support them.
VAT: Independent Schools
Louise Jones Excerpts(2 months, 1 week ago)
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Louise Jones (North East Derbyshire) (Lab)
Thank you, Mr Speaker, for calling me to make my first contribution in the House. It is a great honour to be here. I am so proud to be part of a Government who are putting state education at the heart of our mission. I have not been an MP for long, but I have already spent a lot of my time visiting schools in my constituency, and I have seen and heard for myself the very real challenges that they are facing because of the effects of austerity on their budgets. Opportunities for young people are shrinking in front of our eyes. I am glad that we are making these decisions so that we can invest more in the state education that 93% of our children need.
I would like to talk about the service of my predecessor as MP for North East Derbyshire, Lee Rowley. A constant refrain for me when I was campaigning during the election was how well regarded he was as a constituency MP, which is not always what you want to hear when campaigning for the other side, but it is a clear sign of how well regarded he was by his constituents. I also pay tribute to his service in the House, where he served in various ministerial positions with distinction. I particularly recognise his important work campaigning on behalf of those with ovarian cancer. I am sure that everybody in the Chamber will join me in thanking him for his service.
It is a huge honour to represent my home, North East Derbyshire. I will take a few moments to talk about what that place means to me, and indeed what home means to me. For many of my colleagues, home is where they were born or where they grew up. It is very much the origin of their journey, but for me and many others like me, it is the destination. As many of my fellow military veterans will know, I lived in over 11 different places over the past 10 years as a result of my military service. Whether that was a small officer cadets’ bedroom in the Royal Military Academy Sandhurst, kept to the ruthless standards of tidiness that that place demands—standards that may have lapsed since—my first posting to Normandy barracks in the beautiful city of Paderborn in Germany, or indeed the compound in Kabul where I served on operations, my accommodation has been varied, transient, occasionally used as target practice, and rarely felt like home. So when I say that I have found my home in North East Derbyshire, that is because I have come home.
When I turn off junction 29 of the M1 and see in the distance the latticework of green fields of Holy Moor, I know that I am home. When I am walking up Market Street to have a cuppa at the café Host, or something stronger at The Three Horseshoes, I know that I am home. After a busy day’s canvassing, when I am getting a superlative chippy tea at New Tupton Fish Bar or a bacon cobb at Woodheads in Eckington, I know that I am home. When I am crossing the bridge over the River Rother into Killamarsh and I see the sign for that village, called by its original name—please forgive my Anglo-Saxon here—of Chinewoldemaresc, I know that I am home, When I crest the hill at Coal Aston and see before me across the valley the town of Dronfield, with the purple hills of the Peak district in the distance, I know that I am home.
I want to say thank you to the people of North East Derbyshire for seeing in me the service and the values that they want to represent them in this place. I repeat the pledge that I made during my campaign that I will use each and every day here to serve you and deliver the future that I know we can have: a better future based not just on promises, but on real progress.
The work of this Government has already begun, and there is so much that I know will make a huge positive transformation for people in my constituency, whether that is renationalising railways so that we can be proud of the service they provide again, huge reforms to workers’ rights and renters’ rights so that we can end no fault-evictions, or the establishment of the child poverty taskforce so that we can drive down child poverty, just as Labour Governments have done before, and I know we will do again. There is much to do, and much that I am looking forward to being a part of.
Delivery matters. I want to speak briefly about why that is and about the effect that it has on our democracy. This is a subject close to my heart. As I have mentioned, I served in the military, and nobody is so much affected by the decisions of this House as my former colleagues. The decisions that colleagues sat in the Chamber have made and will make will have a direct impact on their lives. Those decisions could send them to dangerous places to do dangerous things. Indeed, some of my former colleagues in the armed forces have not come back. I would like us all to take a moment now to remember Corporal Liam Riley, who grew up in Killamarsh in my constituency and lost his life in Afghanistan. Lest we forget. [Hon. Members: “Hear, hear!”]
It is of deep concern to me when I see that the number of people voting has diminished over the past few years; that so many people up and down the country see politics no longer as the mechanism by which we govern ourselves and bring the change that we want for our communities but as something done by some other people in some other place for the benefit of some other people. It is our duty to ensure that we leave this precious democracy that we have inherited in a better place than where we found it and that we show everybody that a vote for an MP matters, that a vote for a Government matters, and that a vote for democracy matters. That is how we can make the difference in the small towns and villages that make up places such as my constituency of North East Derbyshire.
Finally, there is a piece of advice that I would like to commend to the House. Over the summer, I had the privilege of meeting Clay Cross air cadets. As I take my place in the House, I commend their motto, “Acta non verba”—deeds, not words. We can all agree that that is a good motto to have as a Member of Parliament, and indeed for the Government.
