Inheritance Tax

Debate between Jerome Mayhew and Robbie Moore

Wednesday 14th October 2026 Commons Chamber

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

Like all Members of the House, I am sure, I do an incredible amount of outreach with many of the family businesses that we are lucky to represent as constituency MPs, from our manufacturers and engineers, to those in our garden centres and breweries, and our hoteliers and farmers. They are telling me constantly that, from the last two Budgets alone, business and operating businesses in this country is difficult. We have seen an increase in employer national insurance, an increase in the minimum wage, and everyone over and above that minimum wage wanting the increased differential. Business rates now apply much more strongly than they ever did under the previous Conservative Government.

The Employment Rights Act 2025 effectively now makes it much more challenging for an employer to take on an individual and offer that young person an opportunity. My inbox—like, I am sure, those of many hon. Friends and probably of Labour Members—has been filled with emails from people representing those with disabilities or special educational needs, who are now struggling to get a job because of the Employment Rights Act, which makes it much more difficult. It is challenging.

Then, of course, we have the additional issue of the changes to inheritance tax, which impact all family businesses. A huge amount of pressure was rightly put on the Government, initially to increase the threshold, but ultimately in wanting 100% relief for agricultural and business properties. We saw movement from the threshold of £1 million to £2.5 million, and we now have the bizarre scenario that for someone who is married, the threshold will be £5 million—the first time we have ever seen a differential under IHT.

The reality of that scenario is stifled investment, because many manufacturing and engineering businesses in my constituency are now saying, “Rather than investing in growth as we wanted to do and had programmed in over the next five or 10 years, we are stopping that. We now have to think about mitigating a tax liability at 20% over and above the £2.5 million, which we were not programming into place.” Ultimately, that is having an impact on growth in my Keighley constituency.

[Jerome Mayhew (Broadland and Fakenham) (Con)]

I refer to my entry in the Register of Members’ Financial Interests, because I have been involved in a family farm and have created a family business—[Interruption.] Thank you. One of the really odd aspects of this issue is that the Government seem to be confusing business assets with personal wealth. How can that possibly be fair?

[Robbie Moore]

My hon. Friend makes an excellent point, because that was exactly the narrative that his farmers put to me when I was lucky enough to visit them in Norfolk late last week. If someone is running a family business, the rate of return on their capital might be 1%, but they are lucky if they are getting that. Therefore, there is no return, yet when a valuation of that farm is made on death—not just of the farmland; there might be a farmhouse, a cottage or two, growing crops, stocks in store, machinery and livestock—they are well above that threshold of £2.5 million or £5 million if they are married, and the farming business is then subject to a liability. That is tough, which is why I was so shocked when not one Liberal Democrat MP voted against the implementation of the fertiliser tax, which has made it much more difficult for those family farming businesses.

Then there was the cliff edge in April 2026, when no real warning was given to many of those family businesses. A cruel cliff edge existed, and as a matter of fact—it gives me no pleasure to say this—lives have been lost as a result of the decisions that this Labour Government have made. There has been suicide recorded in coroner’s reports as a result of this Labour Government’s choices through the implementation of inheritance tax changes.

Property Taxes

Debate between Jerome Mayhew and Robbie Moore

Wednesday 3rd September 2025 Commons Chamber

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

Here we are, well over a year into this new Administration, this new Labour Government, and it is clear that they have fundamentally mismanaged the economy in their first year in office. What do we see? Borrowing costs up, growth flatlining, taxes rising and businesses being absolutely hammered. To fix this mess to the tune of £50 billion—who knows what it might be—Labour is now threatening to hike taxes on anyone they have not already squeezed into submission.

It is clear that the Labour Government are coming after people’s property. It was not enough for them to legislate to compulsorily purchase people’s gardens and homes by giving local authorities and Natural England more power through the Planning and Infrastructure Bill, and to acquire them not at market value, but at a disregarded value relating to agricultural property value if they are a farm. If the Government do not manage to grab it, they certainly intend to tax it.

As if that tax on people’s homes or gardens was not bad enough, Labour is also coming after people’s businesses. Through the changes to inheritance tax relief, agricultural property relief and business property relief, the Government have destroyed one of the sole business environments that our communities and businesses rely on—the ability to pass an asset on to the next generation and for them to earn an income from it. Across my constituency, soft furniture makers such as Fibreline, brewers, farmers, hotels and those involved in the hospitality sector have all actively taken the decision to slow the amount of investment they are willing to put in to grow their own businesses. Why? Because of the threats coming out of the Labour Government’s previous Budget in October last year and the Budget coming down the line.

[Jerome Mayhew]

My hon. Friend is making a powerful speech. He mentions the hospitality sector. Does he recognise the Government’s cruel decision to reduce the business rates discount for the hospitality sector from 75% to 40%? It does not sound too bad, but it is actually a tax increase of 140% on the struggling hospitality sector. What impact does he think that has on future investment plans?

[Robbie Moore]

My hon. Friend makes a valid point. Many of our family businesses, whether in the hospitality sector or in other sectors, are actively withholding a level of investment in their businesses which they want to grow and thrive. I have spoken to many farming businesses and many family businesses in my constituency who have worked out what their BPR or their APR liability is likely to be over a 10-year plan, and are therefore holding the level of investment back, because they may have to give it to the Chancellor and not invest it for the future growth of their business. That is not good for the health of the communities and businesses we represent.

Then there is council tax, with the looming threat of council tax revaluations potentially coming down the line, raising the council tax liability on many constituents, with properties potentially moving into higher tax bands. Bradford residents, who include those in Keighley, Ilkley, Silsden and the Worth valley, have already had our council tax raised by 10%. This threat is being added by the Labour Government when council tax is increasing. And then there is the cut to business rates relief, which is impacting many of our businesses.

With the threat of a revaluation process coming down the line, I want to raise the case of the Valuation Office Agency. Just this morning, I spoke to the Rock family, who have developed Providence Park in Keighley, with a huge amount of public funding going into the project. Despite the project completing its construction phase in April, they are now being told that despite an application being submitted, the valuation office is not even progressing with providing the business rate liability. It will therefore be more difficult for the Rock family to let those business premises. What is the Minister doing right now to put pressure on the valuation office to get a grip, pull its finger out and get those rates looked at, not just for Providence Park, but for the many businesses up and down the country that are struggling to get understanding from the valuation office?

This debate is about property taxes. We know that the Government have indicated that they are going to come for property owners in the Budget that is coming down the line—they indicated it in the previous Budget through the changes they made to inheritance tax. The Government must change course for the health and the good of the economic prosperity of our country.