Finance (No. 2) Bill

Robbie Moore Excerpts

Tuesday 16th December 2025 Commons Chamber

[Dan Tomlinson]

The OBR was aware of the tax changes announced in the previous Budget when it made its forecast just a few weeks ago. It expects that employment will rise in every year of this forecast; that every year, the figure will be higher than it was in March; and that there will be over 35 million people in work by the end of the decade.

As I was saying, this year, borrowing as a share of GDP will be at its lowest level in six years, and the Chancellor made the decision to more than double our headroom against the fiscal rules in this Budget to provide continued economic stability. This Finance Bill, alongside other Budget decisions, delivers choices that give people new opportunities and renew our public services. These choices will help lift thousands of children out of poverty, get more people into work and maintain the highest level of public sector investment in 40 years. I was struck by the response from the North East chamber of commerce, which welcomed the ending of the two-child limit, saying,

“The Chancellor is right to scrap the two-child benefit cap. Our members have long argued that this is one of the most powerful levers available to tackle the unacceptable rates of child poverty across our region and to support more parents into sustained and meaningful employment.”

Statements like that are further confirmation that lifting 500,000 children out of poverty is not just the right thing to do, in order to give our children the best start in life, but is an investment in the future and our economy. All of us will be better for it.

This Government have promised to deliver economic growth as our No. 1 priority.

[Robbie Moore (Keighley and Ilkley) (Con)]

I am not quite sure whether the Minister believes what he is reading, because UKHospitality has already done the sums on the impact that this Budget is having on many hard-working hospitality businesses across Keighley and Ilkley. Indeed, it has calculated that over the next three years, hospitality businesses in my constituency will have to pay on average an additional £13,690 per annum. Can the Minister say what the Budget will mean for the growth of hard-working hospitality businesses in my constituency?

[Dan Tomlinson]

The hon. Member said that he is not sure whether I believe what I am reading. I did write this myself, and I do very much believe it. We will have plenty of time to debate the business rates measures when we consider the relevant pieces of legislation and in Committee, I am sure. They are not specifically in the Finance (No. 2) Bill, but I am mentioning things that are not in the Bill, so of course, he is welcome to raise things that are in the Budget, too. At Treasury questions last week we discussed at length, with the shadow Front-Bench team and others, the relief and support that is now in the system to help businesses with the increases in valuations they have seen since the pandemic—there is over £4 billion of support over the next few years, with £2 billion coming this year alone. However, I thank the hon. Member for his intervention. Madam Deputy Speaker, I thought I might speak for 15 minutes, but we are 11 minutes in and I am only on page 2, so I will try to make some progress.

We are sticking to our commitments in the corporate tax road map, maintaining the headline rate of corporation tax—the lowest in the G7—and making reforms to capital allowances to support fiscal sustainability while retaining incentives to invest. We are going further to support companies to scale up and attract investment and talent by significantly expanding the enterprise management incentives company eligibility limits, to maintain the world-leading nature of this scheme. We are doubling the maximum amount that a company can raise through the enterprise investment scheme and venture capital trusts scheme, to make the schemes more generous and supportive for entrepreneurs, helping to support more investment in companies and improve access to finance for those we want to see make the transition from start-up to scale-up.

We are delivering a new service to support major investment projects with advance tax certainty, as committed to in the corporate tax road map. We are also introducing a 40% first-year allowance, allowing businesses to immediately write off a significant amount of their investment to reduce their corporation tax or income tax bill in the year that they make that investment. Overall, these growth measures and the many others we are delivering across the Government will result in the doubling of limits for our enterprise tax incentives and will support many scale-ups and businesses to attract capital as they grow.

This Finance Bill builds on many other measures announced at the Budget and delivered over this Parliament. We are expanding and continuing the work of the National Wealth Fund. We have committed £14 billion for Sizewell C, to help power more than 6 million homes. We are making rapid progress on enabling the delivery of a third runway at Heathrow, and we have provided £120 billion in additional capital investment for roads, rail and energy, including £15.6 billion for major city regions.

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[Dan Tomlinson]

I give way to the hon. Member for Keighley and Ilkley (Robbie Moore), who was the first to catch my eye on that occasion.

[Robbie Moore]

Business property relief impacts many family businesses across the country. What does the Minister say to Fibreline in my constituency, which has worked out that its BPR liability is about £850,000? The company employs 250 people in Keighley whose jobs are potentially at risk as a result of the business not being able to mitigate an inheritance tax liability that this Government are imposing on it.

[Dan Tomlinson]

Our proposals on APR and BPR mean that those with business or agricultural assets will have both the additional £1 million allowance and a tax rate that is half the rate that others within the system pay. My understanding is that the system will be more generous than the one in place before 1992, throughout the whole time that Margaret Thatcher was Prime Minister.

We are reforming the Motability scheme to end the VAT relief on top-up payments, which was a one-off payment required to lease more expensive vehicles on the scheme. We are also ending the application of insurance premium tax on leases to ensure that the scheme delivers value for money for the taxpayer, while choosing to continue to support disabled people.

We are introducing reforms to ensure that private hire vehicle operators will no longer be able to illegitimately exploit an administrative scheme intended for tour operators to pay a much lower rate of VAT than others.

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[John Grady (Glasgow East) (Lab)]

I fully support the Chancellor’s decision to rebuild the headroom, tackle Government borrowing and stick to her fiscal rules. It is consistent with Labour values. There is nothing progressive about 10% of Government spending being on interest. There is nothing progressive about leaving unsustainable debt to future generations.

I worry that there is a lot of criticism of the Chancellor’s proposals but very little by way of fully worked-up alternative proposals. Tackling debt is very important because the nature of Government debt buyers is changing with the closure of defined-benefit schemes, and as the OBR has outlined in a report, where we borrow money from in the future will be very different from what we face now. Furthermore, there is rising debt across many Governments in the western world. Tackling this Government debt in the longer term is very important, and the Chancellor is quite right to focus on her fiscal rules and face the tough decisions that need to be taken. All of us must play our part in assisting with something that is incredibly important for our country.

[Robbie Moore]

This comes down to choices. The tax revenue that will be raised from the changes to APR and BPR is about £500 million. On the other hand, the Government are saying, “We are going to spend £1.8 billion on a roll-out of mandatory digital ID, and £47 billion on the Chagos deal.” This is about choices and how the Government not only raise revenue, but spend it.

[John Grady]

It is about choices—choices to invest in the health service so that people can return to work and contribute to the economy. There is nothing more heartbreaking than being a constituency MP and listening to people who have been waiting for over two years for a hip operation and cannot work. It is about choices to invest in infrastructure and in new nuclear power stations. These are the choices that the Government are making, and I am proud of them.

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[Adam Thompson]

I thank the right hon. Gentleman for his amusing intervention. I am sure that time will tell.

We must all contribute to Britain’s renewal, and there are things that only Government can do to secure that renewal. If we want to get the NHS back on its feet, fix our crumbling schools, cut waiting lists and truly invest in Britain’s future, we must pay for it. We know that the alternatives proposed by the Opposition parties lead only to calamity. Liz Truss showed us that when Governments cut taxes for the wealthy, it is working people who end up paying. Nor should we want infinite borrowing, however; I do not want to spend £1 in every £10 serving debt interest. It should go to our schools, our hospitals, and our country.



So yes, in the Budget and in the Bill, the tax burden has increased, but it is those with the broadest shoulders who will bear the greatest weight—those with property to let, those with shares to sell, those paid not through wages but through dividends, those with such vast savings that they pay tax on the interest alone.

[Robbie Moore]

rose—

[Ben Maguire (North Cornwall) (LD)]

rose—

[Adam Thompson]

In the interests of time, I will not give way again.

These are income streams that are overwhelmingly enjoyed by the highest earners, and it is, by and large, the already well-off who will pay more under the Bill. Its provisions include changes to national insurance relief on pension contributions through salary sacrifice schemes—again, a mechanism primarily used by the highest earners. They include reforming council tax, so that someone living in a £10 million mansion in central London does not pay less council tax than a terraced house owner in Ilkeston and Long Eaton. They include a new surcharge on homes worth more than £2 million, which will be paid by fewer than 1% of homeowners. This Budget was for working families, for the everyman and the everywoman, for children and for young people. It was not a Budget for millionaires, billionaires, slum landlords, investment bankers, or the bosses of big corporations.

[Robbie Moore]

Will the hon. Gentleman give way?

[Adam Thompson]

As I have said, in the interests of time, I will take no more interventions.

Instead, we are taking action to cut the cost of living and strengthen our public services. There will be £150 off average energy bills next year, rising to £300 for the poorest households—again, money back in working people’s pockets. As inflation continues to fall, it becomes easier for the Bank of England to cut interest rates, as it has repeatedly under this Government. Prescription charges, train fares and bus fares have all been frozen. There are 5.2 million more appointments in our NHS, with 250 new neighbourhood health centres, cutting waiting lists and bringing care back closer to where people actually live.

The Opposition parties will decry these measures, exposing our fundamental differences. Reform—whose Members are not here today, I note—would sell off our NHS to the highest bidder, and force people to pay for the care they need. Meanwhile, the Conservatives are calling for mass redundancies in the public sector, enough to sack every police officer in the country twice over. They are against the minimum wage, they are against protections for workers, and they have no plans for growth or renewal—just policies that would leave working families worse off, while their donors get richer and richer.

To renew Britain costs money. To restore confidence in the public finances takes time. To get the economy growing again is a serious challenge, but we are meeting it. The choice is between the measures in the Budget and the Bill, and a return to austerity, and I know which side I am on. I will never apologise for standing up for working people, and for saying that the highest earners should pay their fair share. Nor should the Chancellor, the Government or the British people.

[Robbie Moore (Keighley and Ilkley) (Con)]

I am not quite sure whether the hon. Member for Erewash (Adam Thompson) has read the Budget. He said that those with the broadest shoulders must bear the pain, but those on the basic rate of income tax will be paying an additional £220 a year in income tax as a result of this Budget. I am not quite sure that those with the broadest shoulders will be paying that level of tax.

Growth is down, inflation is up, taxes are up, unemployment is up, borrowing is up and interest debt is up. This Budget, coupled with the last one, is £66 billion of tax raising. As we speak, there are farmers outside this Chamber once again, and I know that they are in the Public Gallery as well. Why? Because of the changes that this Government continue to press ahead with through the family farm tax and the family business tax.

[Stuart Anderson (South Shropshire) (Con)]

Does my hon. Friend agree that farmers across South Shropshire have been devastated by the family farm tax? It is going to impact them far beyond what the Government are even considering, and it will impact national food security.

[Robbie Moore]

I absolutely agree. This Budget has an impact not only on our farming community, but on the wider agricultural supply chain and the many businesses that support our farming community. Why? Because bringing in a threshold of £1 million will impact nearly every family farming business.

Let us look at the figures. The average size of a farming business in England is about 200 acres. When valuing farmland, there may be a farmhouse, a cottage or two, livestock, agricultural machinery, growing crops and crops in store, which will put it well above the £1 million threshold, thereby exposing the farming business to an IHT liability that kicks in at 20% of the value over and above £1 million. The Government will say that they have permitted some allowances, but that does not take into account the value of those businesses. This is going to have a hugely detrimental impact not only on those family businesses, but on the wider agricultural supply chain.

[Carla Lockhart]

The hon. Member is passionate about this issue, and I commend him for the stand that he has taken. I know that he is an expert on valuation. Does he agree that Northern Ireland will be harder hit because of the land valuations and the price of land in Northern Ireland?

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[Robbie Moore]

I absolutely agree, because the value of farmland in Northern Ireland is far greater than the average rate per acre in England or, dare I say, anywhere else in Great Britain. That is why Northern Ireland farmers are going to be absolutely decimated as a result of the changes that this Labour Government are bringing in.

[John Lamont]

My hon. Friend is making an excellent speech. Is he aware of some research done by the National Farmers’ Union of Scotland, which shows that, under the current inheritance tax rules, farmers in Scotland typically pay a £20,000 inheritance tax bill, whereas under Labour’s current proposals the figure goes up to a staggering £775,000, which will kill off most farming businesses?

[Robbie Moore]

My hon. Friend is absolutely right. Indeed, I was in Dumfries and Galloway just last week to speak to farming businesses that will be impacted by the changes that this Labour Government are bringing in. He hits on a very important point, because the NFU, the Country Land and Business Association, the Tenant Farmers Association and the Central Association of Agricultural Valuers have over the past year continually tried to put forward progressive options for this Government to listen to and engage with, but they have not listened. That just shows the naivety associated with this Government. Indeed, at the Liaison Committee yesterday, the Prime Minister himself acknowledged that he was aware of farmers who have worked all their lives within the farming community and who are considering taking their own lives. Despite that knowledge, he wanted to crack on with this policy regardless. It is callous and heartless, and it just shows what this Government are about.

[Graham Stuart]

I am reminded again of Shakespeare, who I believe said:

“Th’ abuse of greatness is when it disjoins remorse from power.”

[Robbie Moore]

Absolutely. All I advocate, as I am sure my right hon. Friend does, is that this Government simply engage with and listen to our farming community. It is not just our farming community that is hit by the IHT changes; it is family businesses more widely.

[Ben Maguire]

I want to point out the case of a North Cornwall farmer called Will Harris, who gave up an engineering job at £60,000 a year to provide food security and put food on our tables. His income is about £30,000 a year, but the tax his children may have to pay would be £500,000—or £50,000 a year, which is almost double the farm income. He is terrified and can hardly sleep at night for thinking, if something happens to him, what will happen to his teenage children and their farm.

[Robbie Moore]

The hon. Member makes an excellent point, and not only Cornish farmers, but those right across the country are being impacted by this Government’s decisions. He also makes the excellent point that many of our farming businesses are incredibly highly geared, given the level of debt associated with their businesses, and are not returning a level of income to even contribute towards paying an IHT liability at 20% over and above the £1 million threshold. They will therefore be subject to a death tax that they will simply be unable to pay.

[Sir Edward Leigh]

My hon. Friend was brought up in a notable local farming family in my constituency, and the reason why the House is listening to him is that he has been bred into farming and knows about farming. Would he like to say what, from his own family’s experience, this means for farmers in Lincolnshire? Some people say that Lincolnshire is full of large estates and all the rest of it. No, it is full of working farms, and he can speak with authority on this subject.

[Robbie Moore]

The point to make quite clearly is that every single farming business will, in one way or another, be impacted by the £1 million threshold kicking in. Why? Because for an arable farm in Lincolnshire, Cambridgeshire or wherever it is, the price of feed wheat is still at about the same price it was 20 years ago, but the costs of all the inputs have been rising. Not only are such businesses subject to cash-flow challenges as a result of this Government removing the delinked payments —dramatically dropping them to £600—as well as removing the sustainable farming incentive and bringing in the fertiliser tax or the double cab pick-up tax, but they will be impacted by the changes to inheritance tax. That impact will be felt by hill farmers in Keighley and Ilkley; arable farmers in Lincolnshire or, dare I say it, down in Cornwall; and farmers wherever there are, even those subject to high land values in Northern Ireland. This Government must listen to our farming community right now, because whether farmers come down today or tomorrow to make noise with their tractors outside, I hope they continue coming to make sure that this Government listen.

It is not just our farming community that is impacted by the IHT changes. This has an impact on our family businesses, our hospitality businesses, our breweries and our manufacturing and engineering businesses. That is why I simply cannot understand why we have not heard from Back-Bench Labour MPs representing urban constituencies, who may be representing a manufacturing or engineering business, a hospitality business or a hotelier. Why on earth have those with such family businesses in their constituencies not been loud and proud in making noises to the Chancellor about the negative impacts these IHT changes will have on our many family businesses?

[Rupert Lowe (Great Yarmouth) (Ind)]

I have recently joined the Public Accounts Committee, and in my short time on the Committee I have come across qualified accounts and local authorities not having audited accounts; only 4% of them have audited accounts. I have watched the Government wasting almost endless amounts of money, and then I witness this madness of them basically breaking the backbone of British farms and British small businesses, and in effect ensuring that there will be none of the long-term investment that drives our economy. Does the hon. Member agree with me that, before we start breaking up these enterprises, we should get the Government’s house in order and cut state waste?

[Robbie Moore]

I do agree with the hon. Member that the Government must get their own house in order before implementing strategies that are impacting many of our hard-working businesses.

The changes to BPR are detrimental. Why? I would use the example of a business in my constituency that has already worked out that its liability after the changes to BPR is about £800,000. The business is owned by the fourth generation, who are in their late 80s. They have been told that the only way to pay a BPR liability, should a death occur after April 2026, is to sell plant or machinery, or to sell shares in their business, either way losing control of their business or not being able to keep their business productive. That demonstrates how uninformed the Government are about the changes they will be making.

I think I have made my point. [Interruption.] The Minister sits on the Front Bench laughing away, but had she had the time to go outside and engage with our farming community, or at least get around the table with Back-Bench Labour MPs and Opposition Members who have been consistently raising this issue over the last year, she might not be sitting there smiling away; she might be able to come to the Dispatch Box in her winding-up speech to give some sort of positive conclusion and hope to those many businesses who will be impacted by this disastrous Labour Government.