Inheritance Tax

Patrick Spencer Excerpts

Wednesday 14th October 2026 Commons Chamber

[Daisy Cooper]

I can tell the hon. Member that, based on the statistics, the thing that would bring the biggest amount of growth would be having a closer relationship with Europe. He will know that we Liberal Democrats opposed the rise in national insurance contributions, and we have said that we would like to see the reversal of the lower threshold as an immediate move to give businesses back the incentive to give young people jobs, given the crisis of young people not in education, employment or training. That is why our plans link the additional growth generated by a stronger partnership with Europe directly to tax cuts for working people. That is the fair way to help families facing the cost of living crisis, the responsible way to cut taxes and the honest way to pay for tax cuts, unlike the Conservatives’ unfunded promises.

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

Where is the fairness in rightly reducing an earning couple’s tax bill over time so that they can accrue capital and buy a house, only for it to be taxed when they want to leave it to their children?

[Daisy Cooper]

I think we all accept that there are many unfairnesses in our tax system and that there are many tax reforms we want to see for growth. I have acknowledged in my speech that there are unfairnesses in the way that inheritance tax works, but scrapping taxes in an unfunded way is not the way to reform tax in this country, and it is certainly not the way to run the economy. Rather than offering another round of economic fantasy, we Liberal Democrats have a credible growth plan that would make the United Kingdom safer, stronger and more prosperous.

--- Later in debate ---

[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.

[Noah Law]

Will the hon. Gentleman give way?

--- Later in debate ---

[Patrick Spencer]

I will not.

The Government have a chance to U-turn. It is a move with which they are now all too familiar. They should show some gumption and cut welfare, grow a backbone and not let the slackers in Whitehall get away with a four-day working week. The Government should cut taxes on the productive half of our economy, allowing businesses and families to pass the homes that they worked and saved for on to their children. The Prime Minister loves a football analogy. This is the biggest open goal he will ever face in his career. He should do the right thing: cut taxes, cut spending and support businesses.