Clause 1

Sorcha Eastwood Excerpts

Monday 12th January 2026 Commons Chamber

[Sarah Olney (Richmond Park) (LD)]

I want to speak to amendments 42 to 47. The Bill fails to recognise the specific way in which family businesses are different from businesses whose shares can be traded. The tax changes announced at the 2024 Budget treat family businesses as though they are a liquid asset or as if their underlying value is expressed in tradeable shares, but family businesses are neither. Shares in a family business have only a nominal value, and it is this nominal value that is transferred upon death. No cash arises from the transaction—unlike with the sale of shares on an open market. That means that money to pay any tax charges arising on the transfer must be made out of the business’s current assets or by disposing of its fixed assets. The value of a family business is often in its fixed assets—typically land, buildings, plant and machinery, as well as patents, copyright and goodwill.

The purpose of business property relief was to enable those assets to pass intact from one generation to the next in order for the business to be transferred as a going concern and to maintain steady revenues that guarantee employment and supply chains. Removing BPR from the inheritance tax regime will mean that assets will need to be sold to pay the inheritance tax. That will not only reduce the overall value of the company but limit its ability to generate future revenue. Asset sales will already be subject to capital gains tax before the net value can be released to the shareholder by way of a dividend to pay the individual IHT liability, and that dividend itself will be subject to tax, so the asset sale has to realise sufficient cash to pay three separate taxes.

Members might argue that assets being disposed of by one company does not take them out of the economy, and indeed our tax system should ensure that assets are allocated to wherever they can be most efficiently exploited, but this change to BPR does not ensure the efficient reallocation of assets from one business to another. It forces the sale of productive assets that were being efficiently used, and there are no guarantees that the asset can be put to its most productive use under its new owner.

Recent experience has shown that UK assets are increasingly being picked up by foreign investors, increasing the risk of job losses, restructuring and head office operations being moved abroad. Forced sales that need to be completed within IHT timescales are unlikely to make their full market value. In a specialised market in which there are few annual sales, one depressed sale value can influence the valuation of other assets in the same class, having a knock-on effect on all company balance sheets.

Death comes to us all in the end, being the only certainty in life apart from taxes. The IHT regime recognises and allows for assets to be passed down the generations without being taxed as long as seven years has passed between the date of the gift and the death of the bequeather. For many family businesses, the change in BPR rules will just mean that they have to actively plan for an orderly transition of shares to enable them to take advantage of this provision. But for some families, it is already too late to plan effectively.

The largest employer in the London borough of Richmond upon Thames is a family-owned business with the majority of shares owned by the founder, who is in his 90s. Even were the shares to be transferred now, there is little chance that seven years will elapse before his death, and therefore there is every risk that the firm will need to be broken up in order to pay the IHT liability, putting hundreds of jobs at risk.

Of course, tragically there is always the risk of unexpected death. While not being its principal purpose, one of the advantages of BPR is that it relieves the families of the deceased from involving themselves with complicated business transactions while mourning their unexpected loss. I welcome, of course, the announcement of the raising of the BPR threshold from £1 million to 2.5 million, but that merely reduces the number of companies that will be liable for the tax rather than addressing the issue.

There is currently no certainty on either the number of businesses that will be affected or on the amount of additional tax revenue that will be raised by the measure. The OBR has not delivered a costing based on the change to the policy announced in December. Given that the policy will trigger behaviour change, it is unclear to me that the benefits of this measure will outweigh the potential harm to employment in otherwise thriving businesses up and down the country.

I am sympathetic to the Chancellor’s instincts in this matter—I too, think we should be prioritising the needs of entrepreneurs over the protection of inherited wealth—but the likely meagre returns to the Treasury as a result of this policy do not justify the likely impact on employment that will occur if otherwise thriving businesses are forced to be broken up.

[Sorcha Eastwood (Lagan Valley) (Alliance)]

I rise to speak on clause 62 and schedule 12, and my new clause 1. As we have already heard from the Northern Ireland Benches, this is about listening and recognising Northern Ireland’s unique circumstances. I acknowledge from the outset the deep anxiety and distress caused to many farmers across Northern Ireland, including in Lagan Valley, by recent inheritance tax proposals. Farming in Northern Ireland is not just an economic activity; it is a community, a way of life and something that is deeply special and has been rooted in the land across Northern Ireland for generations.

As many have said, it is also central to our food security. I cannot for the life of me understand why, at a time of ongoing and increasing geopolitical insecurity, we would take this step. Farmers in Northern Ireland responded with a united, constructive and responsible voice. I pay tribute to the Ulster Farmers Union, the Young Farmers’ Clubs of Ulster and any farmer who took a stand on this important issue. That unity mattered, and it forced movement from the Government.

I will not gainsay that or try to nit-pick: I welcome the U-turn. We should never have been in this position, but I do welcome the change. The original £1 million threshold was never fit for purpose for Northern Ireland. Analysis by the Department of Agriculture, Environment and Rural Affairs showed that it could have pulled about 50% of Northern Ireland farms into inheritance tax compared with about 5% of estates generally across the UK. That level of impact was clearly disproportionate. I therefore welcome the increase in the threshold from £1 million to £2.5 million and the decision to make the allowance transferable between spouses. Credit is due to the farming community alone for the united front that secured this long-overdue change.

But while many families will feel relief, as other members of the Committee have outlined, real uncertainty remains in particular for older farmers and those who cannot simply plan around sudden policy changes. I place on record my thanks to my colleague Andrew Muir MLA, the Agriculture Minister in Northern Ireland, and his officials. He has been steadfast, evidence-led and relentless in standing up for Northern Ireland’s farmers. That included repeated engagement with the Treasury and a joint letter in November with the First Minister, Deputy First Minister and Finance Minister, which called clearly for a higher threshold and spousal transferability. This is devolution working at its best, no matter what others may say, but it also shows why Westminster must listen when Northern Ireland speaks with one voice.

Northern Ireland is different, and one-size-fits-all policy does not work for Northern Ireland. Farms in Northern Ireland are smaller on average, intergenerational and family-run, and often land-rich but cash-poor. Land values, as others have elucidated, continue to rise faster in Northern Ireland. Even with a £5 million transferable threshold, DAERA estimates that the number of impacted farms would fall to about 5%, but those farms account for around 27% of the total area that is farmed. I am clear-eyed about this. Not every farm will be able to avail itself of the £5 million threshold, and poorly calibrated tax policy can force land sales, break succession and undermine the long-term viability of family farms.

Finance (No. 2) Bill

Sorcha Eastwood Excerpts

2nd reading
Tuesday 16th December 2025 Commons Chamber

[Sir Mel Stride]

I welcome the hon. Lady’s intervention. She is absolutely right on the matter of APR, but the issue is not just APR.

[Sorcha Eastwood (Lagan Valley) (Alliance)]

We are in a world that is extremely uncertain, and our farmers are part of our national security, but we are farming them to death. What does that do for sustainability and our thriving farm agribusinesses?

[Sir Mel Stride]

The hon. Lady is absolutely right. The value of farming goes above and beyond successful businesses simply contributing to the economy in the traditional way. Farming also underpins our food security as a nation.

Conduct of the Chancellor of the Exchequer

Sorcha Eastwood Excerpts

Wednesday 10th December 2025 Commons Chamber

[Sir Mel Stride]

My hon. Friend is absolutely right. The Government talk a good game on poverty, but when it comes down to what they do, we see something entirely different.

[Sorcha Eastwood (Lagan Valley) (Alliance)]

On the point about what poverty means to our constituents, we are sitting in Northern Ireland with the local growth fund and the Treasury refuses to understand that the way we do things is different. We do not need 70% capital funding; we need it the other way around. That, to me, speaks to some of the substantive motion that I am comfortable to speak to, which is that it sometimes feels that the message is not getting through. Whether it is on the farm tax or the winter fuel allowance, our constituents need a Government who will listen. They promised to listen, but so far that has not been reflected.

[Sir Mel Stride]

The hon. Lady is absolutely right.

There is another change to the inheritance tax regime that will be equally as destructive as the agricultural property relief changes, and that is the business property relief changes—the tax changes relating to family firms up and down the country. I have met many of them. These are sometimes substantial businesses that have gone from having a bright outlook under the last Government to suddenly being concerned about the provisions they will now have to make to avoid being broken up as a consequence of the ruinous changes to the inheritance tax regime for those businesses. This is destroying investment, jobs and growth. That is the story of the Labour party.

National Insurance Contributions (Secondary Class 1 Contributions) Bill

Sorcha Eastwood Excerpts

Committee of the whole House
Tuesday 17th December 2024 Commons Chamber

[Chris Curtis]

Thank you, Ms Nokes. I am happy to count the number of times I have mentioned national insurance in my speech, but I can guarantee Conservative Members that it has been quite frequent. I will mention it again in the following sentence.

The Budget, including the NICs changes, makes hard decisions to fix the foundations of our economy. We will work tirelessly to bring about the economic growth that the previous Government failed to achieve, so that we do not have to make such hard decisions in the future. It is only by doing so and not engaging in the fantasy economics of the Conservative party that we can break free from the cycle of failure, support businesses of all sizes and create a brighter future for our country.

[Sorcha Eastwood (Lagan Valley) (Alliance)]

I am proud to have tabled several amendments to the Bill to support people in Northern Ireland and, indeed, the organisations that lobbied me to do so. Amendments 10, 11 and 12 seek to protect Northern Ireland’s healthcare, social care, childcare, hospices, and community and voluntary sectors from the impacts of the proposed rise in employer’s national insurance contributions. Those sectors provide vital services in Lagan Valley and right across Northern Ireland, yet they are being asked to bear a disproportionate burden without the ability to mitigate the costs.

Let me begin by recognising the importance of sustainable funding for public services. My party welcomed many aspects of the Chancellor’s inaugural Budget, including changes to fiscal rules, NHS investment, and the unpausing of city and growth deals. However, we are deeply concerned about the consequences of the national insurance increase for critical sectors in Northern Ireland that are already operating under immense financial strain.

During the last five years, community and voluntary groups have played a critical role, from supporting our communities during the covid-19 pandemic to responding to the ongoing cost of living crisis. However, despite their vital contributions, they are once again treated as peripheral when it comes to matters of funding and taxation. In Northern Ireland, our higher public sector dependency and chronic underfunding mean that such groups in our region are uniquely vulnerable to the rise in NI. Indeed, the recent Executive monitoring round in October made it clear that the Barnett consequential remains inadequate to cover departmental overcommitments.

Community and voluntary organisations are not an optional extra. They are currently a cornerstone of public service delivery, often co-designing and implementing essential programmes in partnership with Government. However, when financial pressures mount, they are frequently left to shoulder an unfair burden. The national insurance hike risks further entrenching that inequity. Such organisations should not be regarded as expendable. They must be exempt from the increase, which is precisely what my amendments seek to achieve.

Northern Ireland’s hospices are overwhelmingly reliant on private donations, and Members from across the House have referred to the Westminster Hall debate that we had only a few weeks ago. Regardless of their opinion on the subject, everyone recognised the importance of hospices, yet the proposed NI rise will see some of their doors close. That is the reality of what we are facing today. As for trying to get a GP appointment, good luck—not just in Lagan Valley and Northern Ireland, but right across the UK—as general practice is struggling to meet the many demands that are put on it.

Today I want to highlight the unique circumstances that we in Northern Ireland face. The challenges are not abstract; they are real, tangible and deeply felt by my constituents. It should come as no surprise to Members present that Northern Ireland’s health waiting lists are some of the longest in Europe, and far exceed those in the rest of the UK. Despite being the bedrock of our healthcare system and being under immense financial strain in Northern Ireland, providers such as GPs, dentists and pharmacists are currently not exempt from the rise in NI, even though they are already struggling under immense cost pressures. Capacity reductions in primary care are simply not an option for Northern Ireland. Dental practices, particularly those providing NHS services, which are in high demand, have seen operating costs surge by 30% to 40% since 2019.

With Department of Health funding failing to keep pace, many practices are unable to provide affordable care to patients. Indeed, anecdotal and evidential data shows that, in some areas of deprivation, young children are presenting with extreme tooth issues and have nowhere to go. In a joint statement earlier this month, Community Pharmacy NI, the British Medical Association NI, the British Dental Association NI and Optometry NI said:

“Medical, pharmacy, dental and optometry providers are the front door to the health service for families across Northern Ireland and vital for the transformation of care here. Yet these services are under extreme financial pressure, resulting in the closure of general practices.”

Indeed, the hon. Member for South Antrim (Robin Swann) mentioned that many GPs are being forced to hand back contracts. The statement continues:

“Without adequate protection from these UK Government policy changes, the precarious position of Family Practitioner Services in Northern Ireland will deteriorate further. It is now an urgent imperative for the UK Government to protect primary care or risk the collapse of these vital services in communities across Northern Ireland.”

I turn to the voluntary and community sectors. The voluntary sector employs over 55,000 staff in Northern Ireland and delivers essential services, often on behalf of Government. New research from the Northern Ireland Council for Voluntary Action has revealed the devastating impact this NIC increase will have on the sector. A recent NICVA survey of 68 organisations found that 76% expect major financial impacts, with additional costs of between £5,000 and £200,000 annually. One social care provider anticipates annual increases of up to £500,000. Many organisations predict inevitable redundancies, particularly in core administrative roles.

Winter Fuel Payment

Sorcha Eastwood Excerpts

Tuesday 10th September 2024 Commons Chamber

[Sarah Olney (Richmond Park) (LD)]

It is a pleasure to see you in the Chair, Madam Deputy Speaker.

Liberal Democrats welcome the opportunity for this debate. We will continue to call on the Government to change course on their planned cut to winter fuel payments. We know the Government have inherited a mess, and we know that at the core of that mess is a legacy of reckless economic mismanagement by the previous Conservative Government.

However, that cannot be allowed to serve as a cover for measures that cause suffering for the most vulnerable in our society. Earlier this afternoon, Liberal Democrats supported the prayer motion to annul the social fund winter fuel payment regulation. Stripping support from many of the poorest pensioners, just when energy bills are set to rise again this winter, is the wrong thing to do, and we have tabled our own early-day motion to reject these plans. It should be noted that the Secondary Legislation Scrutiny Committee in the other place has said that it is

“unconvinced by the reasons given for the urgency attached to laying these Regulations and particularly concerned that this precludes appropriate scrutiny”.

We are supportive of this motion and particularly of the point that there should have been greater scrutiny of the Government’s decision to cut winter fuel payments.

It is well established that there are strong links between living in a cold home and an increase in the risk of serious illness for vulnerable people and those with disabilities.

[Sorcha Eastwood (Lagan Valley) (Alliance)]

I am extremely disappointed by the lack of creativity in this Government. I agree entirely with the hon. Lady that there is a legacy of unfunded promises, but it is not for my constituents in Lagan Valley to bear the burden. Does she agree that they do not have broad shoulders?

[Sarah Olney]

I thank the hon. Member for her intervention and for stating so passionately the case that we on the Liberal Democrat Benches are making in this debate. The Government should have done far more to understand the likely consequences of restricting eligibility for the winter fuel payment, and how that would translate into increased burdens on the national health service.

I and my Liberal Democrat colleagues have listened to our constituents and heard from countless pensioners who are worried about how they will afford their energy bills this winter. Since these cuts have been announced, I have been inundated with local people expressing their disappointment at this decision. That is why the Liberal Democrats have tabled early-day motion 121, calling on the Government to withdraw these plans, and it is why we voted in favour of the prayer motion earlier today. We believe that it is simply wrong to remove winter fuel payments from millions of struggling pensioners.