Growing the UK Economy

Jim Shannon Excerpts

Wednesday 29th January 2025 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

I thank the Chief Secretary to the Treasury for his truly encouraging statement. I would be churlish to say anything other than well done. However, as he will know, we have an issue in Northern Ireland. Economic output increased in Northern Ireland by 8.1% above 2019 pre-pandemic levels, but we are not yet close to our potential. An important factor in business growth is confidence. However, there is an obstacle. Will he outline how businesses in Northern Ireland can be confident, when we are still entangled in the protocol-supplied red tape that prevents good deals and hampers small and medium-sized businesses throughout the Province?

[Darren Jones]

We share the hon. Member’s ambition for the Northern Ireland economy and the people of Northern Ireland. We continue to work with them to unleash that potential. In respect of our trading relationship with the EU, Ministers are in active discussions right now.

Agricultural and Business Property Reliefs: OBR Costing

Jim Shannon Excerpts

Thursday 23rd January 2025 Commons Chamber

[James Murray]

I am not going to tell the hon. Gentleman what he should say to his constituents, but what I can tell him about the Government’s policy is that we have reserved generous inheritance tax reliefs for people in the situations he describes. I encourage anyone who is concerned to seek advice, to understand exactly how the new rules might apply to them.

[Jim Shannon (Strangford) (DUP)]

Sometimes I am absolutely flummoxed—we probably all are—by the Chancellor’s intent to tax working family farms, which we all know will result in the loss of small farms, the sale of the land and a reduction in food security. Now it seems that the OBR agrees that it will not make savings. Will the Minister commit to meeting Cabinet colleagues urgently to remove the sword of Damocles that is hanging above small family farms and hurting the agrifood sector as a whole? I say to the Minister that there is a way forward: increase the threshold from £1 million to £5 million, and family farms will be saved.

[James Murray]

I thank the hon. Gentleman for his question, but I think it was based primary on the OBR publication yesterday. I reiterate the point I have made several times now: that OBR publication reiterated the costings and figures set out at the Budget, it reiterated the level of uncertainty associated with the measure, as published at the Budget, it provides more detail behind that, but the conclusion is the same as it was on 30 October.

High Streets: Autumn Budget 2024

Jim Shannon Excerpts

Thursday 23rd January 2025 Commons Chamber

[Victoria Collins]

The heart of this debate is about making sure we look after those businesses and the many more that could open.

My story shows why this debate is so important to me. I know that the story of our high streets is the story of our local communities.

[Jim Shannon (Strangford) (DUP)]

Will the hon. Lady give way?

[Victoria Collins]

I will make a little progress.

Both for the families behind the doors, and for the families and local people who shop there, our high streets are truly at the heart of the community. I have the honour of representing seven high streets across Harpenden and Berkhamsted, and I am grateful to the local businesses that responded to my survey ahead of this debate. Today, I am sharing their voices, as well as the impact the Budget will have on their businesses, their livelihoods their families and our community.

--- Later in debate ---

[Victoria Collins]

Absolutely. Sadly, the desperation that came through in my survey shows that a lot of businesses are very worried about their future.

[Jim Shannon]

rose—

--- Later in debate ---

[Victoria Collins]

I will take the hon. Gentleman’s intervention.

[Jim Shannon]

From 1959 to 1979, my mum and dad had a shop in Ballywalter, and they had a shop before that as well, so there is a history of having shops. I will take the example of today’s high street in Newtownards. National insurance contributions, wages, theft and attacks on shop staff are all issues now being faced there. Does the hon. Lady agree that the high street needs help today like it has never needed it before?

[Victoria Collins]

Absolutely; that is very much in line with the feedback I had from businesses. Indeed, it is with much disappoint that I share the impact of the autumn Budget on my local businesses. It is no secret that the Conservatives left our economy in a mess, and many of our businesses are still reeling from that. That is exactly why it is important for the Government to get this right.

Many of the proposals in the autumn Budget will not lead to growth on our high streets. I would like to have faith that Labour intended to do the right thing and that these are unintended consequences. I hope that the Government heed some of the warnings and take action to mitigate the impact and change course. In the words of one director in my constituency,

“it is a disaster…all planned investment has been cancelled, expansion plans cancelled. Prices will go up on 1st April by at least 10%. And we’re looking at ways to reduce staff count.”

Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 21st January 2025 Commons Chamber

[Mr Speaker]

Let us go to the Member for that well-known mining area of Strangford.

[Jim Shannon (Strangford) (DUP)]

Mr Speaker, I spoke to the Minister beforehand, so he knows where I am coming from with my question.

I understand that some families of those affected who have passed away have retired to Northern Ireland, and they deserve their pensions. That being the case, has the right hon. Gentleman had an opportunity to ascertain the numbers of those in Northern Ireland who will qualify for such pensions, and will he chase up those people to ensure they get the moneys they deserve?

[Darren Jones]

I thank the hon. Member for his question. I am afraid I have not had time to do so since he told me 35 minutes ago that he was going to ask that question, but I have heard it clearly. I will take that away and come back to him in course.

Agricultural and Business Property Relief

Jim Shannon Excerpts

Tuesday 14th January 2025 Westminster Hall

[Graham Stuart]

I thank my right hon. Friend for that intervention. On Friday, I visited Ian and Rebecca at Bygott farm just outside Beverley, which is about 220 acres. Their profits would be wiped out by the expected inheritance tax for 10 full years, with 10 years to pay it. The expected annual payment for 10 years would be greater than their profit last year. They also play that vital role, which my right hon. Friend mentioned, of looking after the watercourses. The villagers nearby do not know what a critical part they play in maintaining those watercourses.

[Jim Shannon (Strangford) (DUP)]

I commend the right hon. Gentleman for bringing this forward. All my neighbours in Northern Ireland are small farmers. Everyone will be impacted, because the threshold of £1 million is too low. The threshold should be between £4 million and £5 million, which would give a chance to retain the family farm. Has the right hon. Gentleman had the opportunity to talk to the National Farmers Union or the Ulster Farmers Union to ascertain their legal opinion, which is against what the Government are introducing?

[Graham Stuart]

The hon. Gentleman is absolutely right. If the measure was about hitting huge investors, they are the ones least likely to be affected. The richest and most sophisticated will find it easiest to avoid the impact. Small farmers, such as the ones I visited on Friday, will be most seriously affected. It is a bit like the winter fuel payment cut. If the Government took that away from people who had an income of more than £25,000, it would be infinitely less controversial. The point is, it hits people on very low incomes and hurts them the most.

UK-China Economic and Financial Dialogue

Jim Shannon Excerpts

Tuesday 14th January 2025 Commons Chamber

[Madam Deputy Speaker (Judith Cummins)]

For the final question, I call Jim Shannon.

[Jim Shannon (Strangford) (DUP)]

While I welcome the UK-China economic and financial dialogue, as the Chancellor will know, as chair of the all-party parliamentary group for international freedom of religion or belief, I have repeatedly highlighted in this House human rights abuses in China, with regard to Uyghur Muslims, Tibetan Buddhists and Christians in Hong Kong and China. How will the Government and the Chancellor make sure that safeguards for British money and goods are put in place to ensure that economic engagements do not directly support those violations? Human rights concerns, forced labour, denial of religious freedom and ongoing suppression in Xinjiang, Tibet, Hong Kong and Taiwan must be remembered at all costs and in all deals with China.

[Rachel Reeves]

I thank the hon. Gentleman for that thoughtful question. It is important that when we engage with China, we co-operate where we can, we compete where necessary, but we challenge whenever our values do not align. Like the hon. Gentleman, I care deeply about issues of religious freedom and forced labour, but that is the whole point of engaging. We have to engage in the world as it is, not in the world as we would like it to be. It is through those engagements that we are able to raise even some of the most difficult issues and be very clear about the values of our great country.

Public Finances: Borrowing Costs

Jim Shannon Excerpts

Thursday 9th January 2025 Commons Chamber

[Darren Jones]

I am pleased that the hon. Member can afford the subscription to Bloomberg News; I cannot, unfortunately, so I could not read the article to which he refers. He inadvertently asks me a question about the process of the spending review. [Interruption.] That was the question. We are embedding mission-led government, which is what the Prime Minister set out in his missions in his plan for change. That requires Departments to work together to make sure that they are absolutely focused on the delivery of the plan for change priorities, which is why the spending review is being done on a multilateral basis in a new way. I will be giving a speech on this issue in a couple of weeks’ time, and I will make sure that the hon. Gentleman gets an invitation.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for all his answers this morning. The UK’s public debt has risen sharply over the decades. At the moment, it is reaching levels not seen in the post-world war two era, meaning that a large proportion of our expenditure is focused on paying back, as opposed to public spending. I always try to be constructive, as the Minister knows. Nowhere will the impact—on health and education, for example—be greater than in Northern Ireland. I have a very specific question for the Minister: what discussions has he had with Departments, and particularly the Finance Department, at the Northern Ireland Assembly?

[Darren Jones]

I lead for the Treasury on inter-ministerial relationships with Finance Ministers in the devolved Governments. I regularly meet my counterparts, and I will meet them in Wales in the coming weeks to talk about our spending plans for the future.

Christmas Adjournment

Jim Shannon Excerpts

Thursday 19th December 2024 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

First, let me thank all my staff in the office back home for all the work that they do. Their efforts are the reason that my constituency office works so well.

In the short time that I have, I want to give a message of hope. I was thinking about what I wanted to say a long time ago. It seems like it was only yesterday that we were bringing in the new year, and now that has passed. I think of the loss of friends and my heart aches at the thought of those empty chairs around the Christmas table, which many of us will have. For those whose loved ones are in hospital and not with them, and those whose families work in essential care, Christmas can be a lonely time. I am reminded of Ecclesiastes 3:1-8:

“To everything there is a season, and a time”.

Times can be tough. I think of those who are struggling financially and who cannot find a way to solid ground. They cannot see a way forward, and they have nowhere to turn.

I think of those who have lost relationships with partners or children and who find themselves in a position where they are all alone. I think of those who are awaiting news from hospitals or from tests, or who are watching their ill loved ones, not knowing what the year holds. I can understand the hopelessness that flows from that, yet I have a faith that sustains me. I am reminded of the Christmas message—the ultimate message of faith, hope and love. I often cling to the scripture in Hebrews 10:23

“Let us hold fast the confession of our hope without wavering, for he who promised is faithful.”

I know that, while times may be difficult, God is faithful and will never leave us alone in our struggles. He never leaves me alone.

The Christmas message is from a God who loved us so much that he sent his only son to die so that we could have life. The message that comes from his perfect and sinless life, his shameful death and his glorious resurrection is one that gives us hope over 2,000 years later. This is not a nice story wrapped in a bow. This is a story of desolation and despair, yet the plan of God, which is not always easy to see or to understand, was at work in turning it all for the good for all of us. The baby in the manger—the Christ on the cross—is the King of Glory. I am thankful that this reminds me of the hope that I have when I hold fast to him.

As we consider the Christmas story, we must remember that it did not end with the gift of the three kings, with a miracle at a wedding, or with a cross on a hill. It is an unfolding story in which right hon. and hon. Members have a part to play. We can all choose to bring light and hope. In a world of despair, I find that there is still goodness all around us. I think the goodness of God is seen through the goodness of people around us.

When I think about all the good work carried out by the volunteers, the Church and the charitable sector and when I see the goodness of community groups and neighbours, I am reminded that people are still good. When I read of those acts of kindness to strangers, I think of what it says in the good book—if we entertain a stranger, we could be entertaining an angel. Who knows who we will meet in this world when we do something good for a stranger.

In his introduction to the debate, the hon. Member for Harrow East (Bob Blackman) referred to helping those homeless people on the street. Again, that reminds me that people are still good. There is still a desire to help others, and God still moves in situations. A world without hope is a world in darkness. Although it may feel like the skies are darkening, I have faith because I have seen goodness and light throughout this year, dispelling the darkness.

To conclude, from my home to each and every home in this wonderful United Kingdom of Great Britain and Northern Ireland—I love telling people that we are all better together in this United Kingdom of Great Britain and Northern Ireland—I wish you all a very happy Christmas and blessed new year. It is with hope in my heart that I trust that we will all see the goodness of God through the goodness of the people we meet in 2025.

National Insurance Contributions (Secondary Class 1 Contributions) Bill

Jim Shannon Excerpts

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

[Sammy Wilson]

We have seen over the last five months that growth has already been impacted. Of course, the OBR has indicated that in two and three years’ time, growth will be impacted negatively as well. I do not think that one can hide behind those arguments. As I said, I hope that I am wrong, but I suspect that all the economic logic on the impact of this measure and what we are already hearing from employers indicate that that is not the case.

[Jim Shannon (Strangford) (DUP)]

The reality is that those who own businesses in my constituency tell me that they will have to look at reducing wages and reducing numbers. Because of the Government’s policy, those working in doctors’ surgeries will have to look at a reduction in numbers as well. Whether Government Members like it or not, this measure will impact on small and medium-sized businesses and on GP surgeries. That is the reality. The Government are to blame for a recession—there really is talk about it. If a recession comes, the Labour party will be responsible.

Farming and Inheritance Tax

Jim Shannon Excerpts

Wednesday 4th December 2024 Commons Chamber

[Victoria Atkins (Louth and Horncastle) (Con)]

I beg to move,

That this House regrets that the Government has undone its promises to farmers, and is seeking to punish them with Inheritance Tax bills of hundreds of thousands, or even millions, of pounds by cutting Agricultural Property Relief and Business Property Relief; further regrets that the Government has provided conflicting information on the number of farms that will be affected, and has not conducted an impact assessment of this approach; notes that figures from the National Farmers’ Union suggest that some three quarters of farms will be affected; further notes that farmers tend to be asset-rich but cash-poor and that figures from the Country Land and Business Association suggest the average arable farm will have to sell 20% of its land to pay the Inheritance Tax bill that this policy will cause; notes that the Central Association of Agricultural Valuers anticipates that this will affect 75,000 owners of farming businesses over a generation; notes also that this land is not guaranteed to be used for food production if sold; and calls on the Government not to impose the cuts to Agricultural Property Relief and Business Property Relief set out in the Budget that will lead to the end of family farming as it has been known for many generations in the UK.

This Government have driven farmers to despair. The hike in national insurance, the acceleration of delinked payments, the fertiliser tax, the double cab tax, the stalling of capital grants, the scrapping of the rural services delivery grant and the slowing down of applications to farming schemes are all conspiring against our rural economy and the survival of British farms. Yet the Government have added a death tax to that: the family farm tax, which is seeing families across the United Kingdom worry about whether they will be able to hand on their farms to their children, as generations before them have done.

In the 36 days since Labour’s Budget, the Chancellor, the Secretary of State and Ministers have tried to justify their family farm tax, which will break up family farms, by claiming that only 500 farms will be affected each year. Awkwardly, the figures used by the Chancellor are contradicted by figures produced by the Department for Environment, Food and Rural Affairs. The left hand does not know what the far-left hand is doing. When the figure was queried by the National Farmers Union, the Country Land and Business Association, the Tenant Farmers Association, farmers across the United Kingdom and us Conservatives, Ministers told us all rather patronisingly that we did not understand and that farmers should seek professional advice. Well, farmers have sought professional advice, which has revealed just how badly wrong the non-economist Chancellor has got her numbers.

[Jim Shannon (Strangford) (DUP)]

Will the shadow Minister give way?

[Victoria Atkins]

In a moment.

Since the Budget, the Central Association of Agricultural Valuers has analysed the family farm tax and applied tax law and the realities of modern-day farming to it. Its analysis has revealed that up to 75,000 individual owners of farming businesses could be affected over the coming generation, even before inflation, which is the equivalent of five times the Government’s figure of 500 farms affected in 2026-27. How could they have got this so wrong? It is because this city-dwelling Chancellor, Secretary of State and Exchequer Secretary do not understand modern farming or the countryside that they have overlooked a major area of tax policy and forgotten to consider thousands of farmers.

As the Exchequer Secretary has confirmed, the Government forgot to include one of the three routes to the relief in their calculations. They have not included business property relief-only claims in their figures, which means that as many as 14,000 tenant farmers who cannot claim agricultural property relief because they do not own the land on which they farm are absent from their calculations. What is worse is that Ministers do not know how many farmers are affected by that.

The city-dwelling Chancellor and Secretary of State have also forgotten about the farmers who in years gone by followed professional advice and transferred their farms into companies or partnerships. Those farmers will claim only BPR, so they have been left out of the calculations. Again, Ministers do not know how many farmers are in that position.

[Victoria Atkins]

I will in a minute.

I am told by advisers that some farmers choose to use BPR only because it is easier in probate. Guess what? Yet again, Ministers do not know how many farms are in that position, and they have not been included.

I will give way first to the hon. Member for Strangford (Jim Shannon) and then to the hon. Member for Scarborough and Whitby (Alison Hume). I have so much more to say.

[Jim Shannon]

I commend the shadow Minister for bringing forward the debate. The collective decision to have this debate in the House is one that my farmers and constituents very much support. Professional legal advice sought through the Ulster Farmers Union—I must declare an interest as a member of the union—indicates that somewhere in the region of 65% of small farmers and family farms in Northern Ireland will be affected. When it comes to understanding that, has Labour really got no idea what is going on?

[Victoria Atkins]

I thank the hon. Gentleman for intervening. The evidence is building again and again against the assurances that the Chancellor, the Secretary of State for Environment, Food and Rural Affairs, the Exchequer Secretary and the farming Minister have given the House. Frankly, the farmers outside deserve better, and so do we as Members of Parliament.

I will give way to the hon. Lady and then carry on with the calculations that the Government have got so wrong.