Inheritance Tax

Neil Hudson Excerpts

Wednesday 14th October 2026 Commons Chamber

[Patrick Spencer (Central Suffolk and North Ipswich) (Con)]

If it is okay with you, Madam Deputy Speaker, I am going to approach this debate in two sections.

First, let me paint a picture of the reality faced by residents in my constituency. I am blessed to represent a constituency that has everything—yes, rural communities made up of farms large and small, but also towns populated with small and medium-sized independent businesses that hon. Members should visit, such as Simpson’s Sweets and Bulstrodes of Framlingham, Luxmoore of Framsden, Buckle Shipping of Blakenham, the Lion pub of Debenham and Milsoms of Kesgrave. Many of those businesses are family owned and run, and many of those family businesses are made up of parents working with children, nephews, nieces, brothers, sisters and even grandchildren.

There is a palpable love and passion among family members working for something that their parents, uncles and grandparents built. There is care for customers and a profound camaraderie among team members that is so hard to replicate. These businesses are not just great places to work; they provide world-beating products and services. Dingley Dell in my constituency sells pork products—[Interruption.] It is a real place. It sells products to the Oberoi Hotel in New Delhi.

[Dr Neil Hudson (Epping Forest) (Con)]

Are there any black Labradors at any of the premises that my hon. Friend mentions?

[Patrick Spencer]

I am happy to report that the black Labrador population of Suffolk is thriving.

SEERS Medical in Debenham sells medical equipment around the world. Such businesses are invaluable to our economy and society. They not only provide jobs, but pay their taxes, which supports critical public services. We need businesses to boost productivity and to supercharge social mobility.

For so many of my local businesses, there is an unquestionable sadness that the current Government seek to penalise them for wanting to keep a business in the family. That cannot be truer for families of farmers who have tended to land for generations, waking up early and dedicating unimaginable hours, seven days a week, 52 weeks a year. Now they are told that they have to give that up, because this Prime Minister does not have the temerity to get to grips with the welfare budget and because this Labour regime cannot bring itself to stand up to the civil service unions that want to work four days a week for more pay. Yes, everyone heard that right: this Government want to tax the farmers and the entrepreneurs who work seven days a week so that civil servants in London can work four days a week.

The Labour party was founded to protect workers’ rights, but workers in my constituency feel abandoned by this Government. The iniquity of this social and economic contract negates the utter lunacy that seems to govern the Government’s approach to our public finances. I would welcome anyone in this Chamber, or anyone in this country, making a reasonable argument that public spending in its current form, with interest rates at record levels and rising, is sustainable. We have a debt-to-GDP ratio of approximately 100%, with £3 trillion in debt outstanding. We borrowed more than £134 billion last year alone. As a percentage of GDP, we spend as much now as we did at the height of the global financial crisis when we were bailing out banks, and as much as we did during the mid-1970s. By complete coincidence, that was the last time we had a proper left-wing Government like this one in place.

How many warnings from the International Monetary Fund do we have to put up with until the Government suddenly take note and realise that they cannot borrow and spend their way out of a crisis? In June 2026, September 2026 and just earlier this week, international economists have said enough is enough.

--- Later in debate ---

[John Cooper (Dumfries and Galloway) (Con)]

Nothing illustrates the great divide between rural Britain and this urban-centric Labour Government quite like the family farm tax. This was a comprehensive failure to grasp how intergenerational farming works and a wilful failure to understand that asset-rich does not equate to cash-rich, as evidenced by the hon. Member for Tipton and Wednesbury (Antonia Bance), who is sadly not in her place.

A chill was sent through rural Dumfries and Galloway by changes to agricultural property relief, for this was not just about farmers but the wider community and the many jobs intertwined with dairy and beef, pigs and sheep, arable and horticulture. Since my election to this place, I have seen military veterans—some of the toughest people I have ever had the privilege to meet—well up, recalling comrades lost and maimed in the service of this country, and a woman in tears because duff pension advice had robbed her. I have had farmers weeping, too—men in their 80s, with hard knocks enough for many lifetimes under their belts. Those proud old men were crying not for themselves and what they thought they might lose in what little time lay ahead, but about what future generations would lose.

Many families realise that no child will now take on the stark new financial reality of farming. How incredible was it to sit in this place and watch Ministers giving advice on how to mitigate the damage their own policies were doing? Labour likes to roar about the 14 years we Conservatives had in power, but what were they doing in their 14 years in opposition? Clearly precious little proper planning, because the inheritance tax changes, which were so toxic that no one else would touch them, were dusted off in jig time amid a scramble to be seen to be doing something—anything—in that first 100 days.

Inheritance tax is invidious in all its forms: it is the state exacting a last drop from estates, which is gathered despite the taxman’s previous depredations. It is double taxation, for anything in the purview of His Majesty’s Revenue and Customs on death has already come through the storm of income tax, capital gains tax and VAT. That is why we Conservatives have pledged to reverse the cuts to agricultural property relief, abolish inheritance tax on the family home and raise the individual threshold to £500,000. That would mean that a couple could pass on their main home to direct descendants free from inheritance tax, plus a further £1 million without any inheritance tax liability.

[Dr Hudson]

These are people who are doing the right thing: farmers who feed us and look after our precious environment, family businesses supporting their local economy and families who work hard to provide a family home. Is not their being able to pass on their farms, family businesses and family homes to the next generation free from inheritance tax, about fairness?

[John Cooper]

I thank my hon. Friend, who speaks to farmers far more than Labour Front-Bench Members ever do. Indeed, he knows that this is about fairness. We Conservatives believe in rewarding those who have done the right thing: those who have strived and who have saved.

There is further positive news from our plan, as highlighted by the TaxPayers’ Alliance. In October 2024, the previous Chancellor of the Exchequer announced an increase in the interest rate on the late payment of taxes. The rate had been calculated on the Bank of England base rate plus 2.5%, but the Budget saw an increase in the surcharge to 4% above base, so the interest rate on late payment of tax is currently a usurious 7.75%. Asset-heavy, cash-light taxpayers such as farmers are particularly vulnerable to that change as it takes time to convert assets into a form that allows them to pay that balance.

Inheritance tax is due six months after death, after which interest is charged daily on unpaid tax. However, executors may struggle to meet the deadline because properties are illiquid assets that can take considerable time to sell, particularly when probate is required. Selling properties quickly may mean accepting a lower price, while waiting for a better offer can result in additional punitive interest charges. The probate process creates further difficulties as executors often need probate to sell inherited properties, yet generally inheritance tax must be paid before probate is granted.

Stamp Duty Land Tax

Neil Hudson Excerpts

Tuesday 28th October 2025 Commons Chamber

[Dr Neil Hudson (Epping Forest) (Con)]

This stamp duty policy will help to lubricate the system, but my right hon. Friend is talking about putting the houses in the right places. Does he agree that this Government really do need to follow through on that? They have to prioritise brownfield sites and stop bringing in policies that will rip up the green belt, which represents the heart and lungs of areas such as mine.

[Kit Malthouse]

I completely agree with my hon. Friend.

Bank Closures and Banking Hubs

Neil Hudson Excerpts

Thursday 5th June 2025 Commons Chamber

[Esther McVey (Tatton) (Con)]

I thank the hon. Member for Blyth and Ashington (Ian Lavery) for his persistence, for securing this debate and for the work he has done and is doing to get banks back on the high street. Perhaps we should be grateful to the bankers, because, by their actions, they are the only group of people less popular than politicians. Unfortunately, in their endeavour to become the most unpopular people in the country, they are doing huge damage to our local communities. To put that in context, since 2010 more than 10,000 banks have closed across the country, and there are now only 3,000 bank branches left open in this country. In fact, we have more chance of finding a Labour voter on a farm than we have of seeing a bank in a rural community.

The hon. Member for Blyth and Ashington rightly pointed out that the loss of banking facilities has left vulnerable groups, such as the elderly and the disabled, particularly affected and financially excluded. So too are residents in rural areas, where internet access is poor and unreliable. People struggle to get on to the internet to do transactions or for any customer assistance, yet banks continue to withdraw physical services from their customers. When we walk down most high streets, we see that banks have become cafés, bars and pubs.

I will focus my attention on Tatton and my local high streets, because the scale of the closures there is stark. In Knutsford, we have lost Santander, Barclays, NatWest, Lloyds and HSBC since 2018, and only Nationwide building society remains. Knutsford is a prosperous town with more than 1,000 businesses operating locally; there is high demand for banking services, yet they have closed their doors. In Wilmslow, the Royal Bank of Scotland and TSB have closed, with only Halifax and NatWest remaining, which are also going to close. That means that only Santander and Nationwide will remain. In Alderley Edge and Handforth, there are no branches at all, forcing residents to travel long distances.

[Dr Neil Hudson (Epping Forest) (Con)]

Like the constituencies of Members across the House, Epping Forest has seen a series of bank closures over the years. Tragically, Lloyds bank has said that later this year it will close its branch in Debden in my constituency. Like the banks in my right hon. Friend’s community, that branch is a lifeline; many people rely on it for face-to-face banking and will struggle to get to other branches. Does she agree that banks such as Lloyds need to rethink and stop those closures, and that the Government and Link need to step in and support high street banking?

[Esther McVey]

I agree—the lack of banks is a disgrace. Where do people go for their banking needs? The reality is that the banks that are closing have entered into an agreement with businesses and individuals; when they opened their bank account, they opened it with the bank on the high street. The business was there because it expected a certain amount of customer service—that is why they went there in the first place. Face-to-face banking offers confidence, security and efficiency, especially for businesses handing over cash and making significant financial decisions. Without those services, it just will not work.

In 2022, the Federation of Small Businesses found that four in 10 small businesses still relied on cash as a primary payment, and six in 10 needed to make regular cash deposits. I regularly hear from businesses in Tatton that they simply cannot deposit cash or access the basic services needed. Why? Well, that is because 64% of bank branches have closed in the last decade and 65% of cashpoints have gone. That is reducing the ability of businesses to deposit cash in the local area. The shift to online poses risks from technical failures and cyber-attacks. We have heard that through this monopoly and lack of access, there is a squeeze, and commission is being charged for the transactions of these businesses.

Our high streets are at the heart of our communities, but without access to banking services, our high streets, which are already under pressure, have become even harder places to trade, grow and thrive. If we are serious about supporting small businesses and seeing investment on our local high streets and in our town centres, we must stop the decline in banking infrastructure.

Some may argue that closures would be reasonable if banks were losing money and needed to take cost-cutting measures, but that is simply not the case. Banks are not struggling institutions. Last year, HSBC reported nearly $25 billion in post-tax profits. Barclays made $6.4 billion. Lloyds made $4.5 billion. NatWest made $4.8 billion. Those are all eye-watering profits—

National Insurance Contributions (Secondary Class 1 Contributions) Bill

Neil Hudson Excerpts

Consideration of Lords amendments
Wednesday 19th March 2025 Commons Chamber

[James Murray]

We inherited public services that were on their knees and needed urgent support. Part of the reason why we took the difficult but necessary decisions at the Budget last October was, of course, to restore fiscal responsibility, but it was also to get public services back on their feet. That is not just about the public services that people across the UK enjoy; it is also about ensuring that we have the stability for economic growth. If we do not have a health service that works well, we do not have a healthy population who can go to work. If we do not have a transport system that works well, people cannot get to work. That investment to get public services back on their feet after 14 years of Conservative control is essential for the experience of people in the UK, but it will also ensure that we have the economic growth that will enable us to put more money in people’s pockets.

[Dr Neil Hudson (Epping Forest) (Con)]

Will the hon. Gentleman give way?

[James Murray]

I will make a little progress. I have spoken about GPs, but the Department of Health and Social Care has entered into consultation with Community Pharmacy England regarding the 2024-25 and 2025-26 community pharmacy contractual framework. The final funding settlement will be announced in the usual way, following the consultation.

--- Later in debate ---

[James Murray]

Reports on work that the Department of Health and Social Care is carrying out are a subject for Ministers in that Department, but on the funding that I am speaking about, the final funding settlement will be announced in the usual way, following the consultation that is under way.

The NHS in England invests around £3 billion every year on dentistry, and NHS pharmaceutical, ophthalmic and dental allocations for integrated care systems for 2025-26 have been published, alongside NHS planning and guidance. On social care, the Government have provided a cash increase in core local government spending power of 6.8% in 2025-26, including £880 million of new grant funding provided to social care—funding that can be used to address the range of pressures facing the adult social care sector.

[Dr Hudson]

The figures that the Minister is presenting, along with the answer that he gave to the hon. Member for Strangford (Jim Shannon), and similar to the Prime Minister, involve money going into sectors that will not mitigate the national insurance rise. Will he confirm that sectors such as hospices, social care, GPs and pharmacies will have some support, rather than tell us about money that is not going to help people with regard to the jobs tax that is coming in?

[James Murray]

The various organisations or services that I am talking about, whether GPs, pharmacies or organisations that provide social care, receive money from Government, and the way that those discussions take place is by considering pressures on the providers of those services in the round—that is the way the negotiations take place. Direct support for employer national insurance contributions obviously applies to central Government, local government and public corporations, which is much the same way that the previous Government approached things under the health and social care levy. Pressures on social care or GPs, as I have been outlining, are considered in the round in terms of their funding settlements, and as I said, the £880 million of new grant funding can be used to address a range of pressures facing adult social care.

Growing the UK Economy

Neil Hudson Excerpts

Wednesday 29th January 2025 Commons Chamber

[Darren Jones]

These partnerships with the national wealth fund are crucial to ensure that local entrepreneurs, businesses and investors have access to the services provided by the Government. Too often, it is only people who know how the system works or who know the people involved who can get deals done, which means that people, especially in the regions, have historically lower levels of investment than companies, in particular in London. That is why we want to ensure the door is open to entrepreneurs and investors in areas of high growth potential, including in Leeds, so they can get their businesses growing and delivering for the UK economy.

[Dr Neil Hudson (Epping Forest) (Con)]

It has been interesting listening to the statement on growing the UK economy, when everything the Labour Government have done so far is having the exact reverse effect. In Epping Forest, businesses and vital services are talking about job losses and a freeze in recruitment due to the jobs tax, while across the country, family farms and businesses are worried about their futures, with the Government’s heartless inheritance tax policies, children are having to move school and some independent schools are having to close due to the punitive school fees policy. When will this Government admit they have got things wrong and, for the sake of opportunity and growth, reverse their ill-judged policies?

[Darren Jones]

Just to reassure the hon. Gentleman, I will point to three things he may wish to look at: in its long-term forecast, the OBR forecasted growth increasing in this country, unlike what he has said; the International Monetary Fund has just upgraded the growth projections for the UK; and PwC just released a report showing that for the first time ever, the UK is the second most investable country in the world. I hope the hon. Gentleman welcomes those things.

Independent Schools: VAT and Business Rates Exemptions

Neil Hudson Excerpts

Tuesday 8th October 2024 Westminster Hall

[Aphra Brandreth (Chester South and Eddisbury) (Con)]

I am grateful to my hon. Friend the Member for Bromsgrove (Bradley Thomas) for securing this important debate. Just last week, I held a roundtable with headteachers, school governors and bursars from five independent schools in and around my constituency. I am grateful to Abbey Gate college for hosting. The message from everyone at that meeting was clear: the child is not at the centre of this policy. This is not just about the more than 1,600 pupils attending independent schools in my constituency; it is about the education of every single child, because every pupil who leaves the independent sector as a result of this ill-thought-through policy will mean further pressure put on the state system.

As independent schools try to absorb rising costs to minimise the impact of these taxes, they are faced with difficult choices about how to continue the important charitable work they do, including fully-funded bursary places—as many as one in 14 pupils at one senior school in my constituency. Like others here, I am particularly concerned about the impact on children with special educational needs.

[Dr Neil Hudson (Epping Forest) (Con)]

Hard-working families sacrifice huge amounts to put their children into independent schools. There are more than 2,000 pupils in Epping Forest independent schools. Does my hon. Friend agree that the Labour policy of removing VAT and business rates exemption from independent schools will impact pupils right across the country, including SEND pupils, and will also impact our fantastic local state schools, which will be hit with serious capacity issues when pupils are forced to transfer? This policy is about the politics of envy, rather than the politics of evidence.

[Aphra Brandreth]

Absolutely. The policy will impact all children across our country, and needs to be taken seriously. I have spoken previously about the challenges of SEND provision in my constituency, where families wait months for an EHCP. They are already being let down, so I am deeply concerned about the added pressure of this policy.

Finally, the policy is simply unworkable. The Government are asking staff and bursars to rethink how they operate invoicing and fee processing halfway through an academic year. At the very least, I urge the Government to move the start to the beginning of the next academic year. This is not about embossed stationery, swimming pools and astroturf; it is about children and their education. I urge the Government to think very carefully about this decision and to do as the headteachers at my roundtable on Friday suggested: put children at the centre of this policy.

Winter Fuel Payment

Neil Hudson Excerpts

Tuesday 10th September 2024 Commons Chamber

[Dr Neil Hudson (Epping Forest) (Con)]

Two months ago, the Labour party was elected promising change and a Government of public service. Although their announcement to cut winter fuel payments is change, I doubt it is one that millions of pensioners up and down the land thought that they would make. In terms of a Government of service, I struggle to think of a greater disservice to millions of pensioners than taking away the winter fuel payment on which they rely. Pensioners who have worked hard all their lives deserve dignity and respect in their retirement, instead of this harsh and ill-judged policy from Labour.

Many of those pensioners will be forced to make a tough decision this winter about whether to have the heating on, as energy prices rise and temperatures drop. The Government have admitted to me in a response to a parliamentary question that, shockingly, they believe that 15,744 of my constituents in Epping Forest will have their winter fuel allowance withdrawn by the Labour Government this winter, among the more than 8.6 million pensioners right across England who will have this lifeline withdrawn. This could have so many implications for the health of older people, who spend more time inside their homes when facing conditions, some of which need social care.

There is a real concern that being cold at home may have a detrimental effect on people’s health, as we have heard from some of our medical colleagues today, resulting in respiratory disease, rising blood pressure, an increased risk of strokes and heart attacks and even hypothermia. It is recommended by the UK Health Security Agency that the temperature should be 21°C in living areas and 18°C in bedrooms, which pensioners are going to struggle with this winter.

[Sir Gavin Williamson]

In Stone, Great Wyrley and Penkridge, over 19,600 pensioners are going to lose their winter fuel payments. Of course, so many of them are incredibly proud and do not want to apply for additional benefits, and so many will be just outside of being eligible. The decisions of this Government are condemning them to a cold and incredibly hard winter.

[Dr Hudson]

My right hon. Friend is exactly right that many people are too proud to claim these benefits, and that many people are just above the cut-off point. These people have been portrayed by some Labour Members as rich and able to deal with it, but that is not the case.

I am proud that our Conservative Government not only provided winter fuel payments, but extensively supported older people and the country through difficult times during the pandemic and the effects of the war in the Ukraine and, very importantly, that they honoured the Conservative triple lock, meaning that pensioners got the pension increases they deserve.

I am also proud that my party is continuing to defend older people, including through the compassionate Conservative motion that triggered this debate and vote, and that I was proud to sign. The economic decisions we make speak volumes about our values as a society and a country. How the Labour Government respond to this debate on winter fuel payments, and how they respond in the upcoming Budget, is their chance to show where their values truly lie. This Government need to confirm that, now and in the upcoming Budget, their need to save money will not come at the expense of older people and the financial support they need.

This Government really need to think again about their move to cut winter fuel payments, for the sake of the millions of older people who need them and for the implications it will have. If Labour chooses to continue with this heartless policy, my constituents and the constituents of Conservative colleagues can be assured that my party and I will continue to stand up for our pensioners and will maintain our call that the winter fuel payment cut be reversed.

[Several hon. Members rose—]