Family Businesses
Peter Fortune Excerpts(3 weeks, 6 days ago)
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Peter Fortune (Bromley and Biggin Hill) (Con)
Like many Conservative Members who have started a small business, I draw the House’s attention to my entry in the Register of Members’ Financial Interests. It has been fascinating to listen to stories about businesses from across the country during the debate. I was particularly moved by my hon. Friend the Member for Keighley and Ilkley (Robbie Moore) who talked about the pressure facing a local gym. It made me feel better as I am contributing to my local gym by paying the membership fees and not using any of the facilities.
Seven months ago, when Labour came to power, the new Government proclaimed that economic growth was their first mission. For all the doom-mongering, Labour inherited an economy that had turned a corner, following the pandemic and the energy crisis. The economy was growing, energy bills were falling, inflation was back on target and employment was high. However, in seven short months, economic growth has stalled, the Bank of England has halved its growth forecasts, the cost of living is rising again, with high inflation and energy bills, and unemployment is increasing, as businesses brace for tax rises.
Britain’s economy is stuttering because of this Government’s failing policies: a family business tax to break up thriving enterprises, a jobs tax to make it more expensive for businesses to employ people, a business rate hike to squeeze the already struggling British high street and more employment red tape to tie businesses’ hands. But Labour is not content with cutting jobs and closing businesses—it is giving Ministers the power to shrink the great British pint. While they say they will never do it, who could trust a word this Government say? Not pensioners, not working people and certainly not farmers. On an issue of such vital national importance, can we take that risk?
Every employer I speak to in my constituency tells me that they have no choice but to cut jobs, wages and investment. That is true whether the employer is a nursery in Bromley Common, a large franchisee on Bromley High Street or a charity serving our borough. That is what an anti-business Government look like, not a pro-growth Government.
The policies are all the more bizarre as the Prime Minister once said:
“Wealth creation is our number one priority.”
In reality, he does not know how to create wealth, only tax it. The Government are taxing family farmers who will be forced to sell off their land, family businesses that will be forced to sell and high street businesses that will be forced to close, taking jobs so that working people face redundancy.
It is not too late for Labour to spare family businesses. Those businesses employ 14 million people and contribute £575 billion to the economy. Labour’s decision to cap and cut the business property relief risks breaking up long-running family businesses. Instead of continuing those businesses, the next generation will be forced to sell. The Government’s policies will not grow the economy, but hollow it out. Britain simply cannot afford Labour’s assault on our nation’s economic future.
VAT: Independent Schools
Peter Fortune Excerpts(5 months, 2 weeks ago)
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Peter Fortune (Bromley and Biggin Hill) (Con)
My children have been educated in both the state and independent sectors. I spoke earlier in the Westminster Hall debate about how Labour’s plan to impose VAT on independent schools is a tax on aspiration, but it is also something else: a lack of understanding of how to govern. The Government’s education tax is not just a lousy decision; it is a lousy plan.
As has already been said, imposing the VAT in January—the middle of the school year—risks disrupting children’s education and forcing mainstream schools to accept mid-year students. It denies parents time to prepare and does not allow independent schools time to register for VAT. Families of more than 5,000 pupils studying at independent schools in the London borough of Bromley and my constituency must find up to £4,345 more per year to protect their children’s education, or take the gruesome decision to remove their child from their friends and the school they enjoy, even at crucial moments such as GCSE and A-level years. Is that really what the Government want? One concerned parent told me that, with their children just two terms away from their GCSEs and A-levels, finding a local state school with the capacity to take them on and that is studying exactly the same exam boards would be impossible.
In truth, the Government have no idea how many pupils might leave. The Institute for Fiscal Studies, which the Government rely on, estimated that up to 40,000 people would leave independent schools, but it admits that there is too little evidence to be sure and that the situation is uncertain. In 2018, the Independent Schools Council estimated that, if this change were imposed, pupil numbers would drop by more than 134,000 over five years. Whatever the number, it is a safe bet that this will be a slow burner, with some pupils forced out immediately, others leaving after exams, and those who will never enrol, resulting in years of uncertainty for schools, their staff, students and teachers, as many smaller schools will simply wither away.
Even a moderate number of exits threatens to close small independent schools. The likely result will be fewer pupils, fewer schools and more significant pressure on mainstream schools. This is a reckless recipe that will disrupt the education of pupils with special educational needs, pitch parents against councils and burden mainstream schools. When the Labour party said that it would not tax working people, we had no idea that its targets were children and pensioners. This is ideological, not practical, and it will impact far more pupils than the Government will admit to or recognise. Let us be clear: in a few short weeks, when children up and down the country will be saying goodbye to their friends, when they will be struggling with the anxiety of being forced to go to a strange new school, and when, through no fault of their own, they will be suffering academic pressure in an exam year, it will be the result of Government policy. As one headteacher said to me, this policy is nothing short of cruel.
Independent Schools: VAT and Business Rates Exemptions
Peter Fortune Excerpts(5 months, 2 weeks ago)
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Peter Fortune (Bromley and Biggin Hill) (Con)
I should be clear that both my children attend independent schools. Like many parents who make the same choice, my wife and I, with the support of our families, made sacrifices to enrol them. We did so because, with that support, we could.
Make no mistake: I recognise it is a privilege to have that opportunity. Like many parents, I want to give my children something I did not have growing up—an excellent education. My schooling in Lambeth, where I grew up on a council estate, left a lot to be desired. As I grew older, I realised that an excellent education was the way out. With my children, I spent what I had to give them the best possible education. Crucially, our decision for our family did not impact anyone else.
Sending children to independent school—a personal and privileged choice—is not a bad thing that should be taxed and regulated out of existence, as Labour also want to do with smoking or by introducing a two thirds of a pint measure. It does not mean that state schools are poorer. In fact, we pay our taxes and opt out, leaving more space and school resources for others. Independent schools also offer bursaries and donate the use of their facilities to other local schools. Those who think differently have an ideological obsession, and I am afraid that this new Labour Government share it. They are not thinking about lifting schools up, but tearing some down. Remember, in 2019, it was the Labour party that voted to abolish independent schools.
Instead of the complete destruction they desire, the Government have settled, for now, on taxing these schools to the brink by imposing VAT on fees and removing their charitable status. What they picture are Eton schoolkids fresh from the family estate, high on their parents’ aspirations. They do not picture the kid done good from a council estate who also has high aspirations, the shopworker doing the extra shifts to give her kids the chance she never had or the parents giving up everything to get the extra SEN care they want to provide for their child.
This is ideological, not practical. It is knocking people down, not lifting our country up. Worst of all, it is ill-considered. As one local headteacher told me, this policy is nothing short of cruel.