Taxes

Debate between Lord Livermore and Lord Whitty

Tuesday 15th July 2025 Lords Chamber

[Lord Livermore (Lab)]

A working person is someone who goes out to work. The Government have pledged not to increase taxes on working people. We stand by that, which is why we are not increasing their income tax, national insurance contributions or VAT.

[Lord Whitty (Lab)]

My Lords, the concentration during this Question has been on national finance and national taxation, but the real crisis is in the finance of local authorities of all descriptions in all parts of the country, and under all political control. Do the Government intend to look at the basis of financing local authorities so that we can introduce a robust scheme before the end of this Parliament?

[Lord Livermore (Lab)]

I am grateful to my noble friend for his question. A council tax cap of 5% was introduced by the previous Government. Councils do not have to increase council tax by 5%, but under the rules they cannot increase it by more than 5% without a local referendum. That remains the position.

Agricultural and Business Property Reliefs: OBR Costing

Debate between Lord Livermore and Lord Whitty

Monday 27th January 2025 Lords Chamber

[Lord Livermore (Lab)]

They have been costed jointly at £0.5 billion, as the noble Baroness, Lady McIntosh of Pickering, said.

[Lord Whitty (Lab)]

My Lords, while I am not entirely happy about this policy, I recognise that it has been done and that it will stand. However, I suggest to the Treasury and Defra that, if they are looking for taxation from landowners, they should look at the companies, individuals and institutions buying agricultural land to set against their profits elsewhere—or indeed to greenwash their carbon-creating activities elsewhere—and at those who make a killing from a change of use, rather than directing their tax increases at small family farms.

[Lord Livermore (Lab)]

Just to be clear with my noble friend, we are not doing what he says at the end of his question. I think it is worth revisiting the rationale for this policy in the first place. Of course, the Government recognise the role that reliefs play in supporting farms and small businesses. Importantly, the reliefs will continue to play that role, but the reality is that the full, unlimited exemption, which was introduced in 1992, has become unsustainable. Under the current system, the 100% relief on business and agricultural assets is heavily skewed towards the wealthiest landowners and business owners. According to the latest data from HMRC, 40% of agricultural property relief is claimed by just 7% of estates—that is just 117 estates claiming £219 million of relief. It is neither fair nor sustainable to maintain such a large tax break for such a small number of claimants.