(1 week, 6 days ago)
Commons ChamberI thank my hon. Friend for her question and, in particular, for her hard work to drive take-up of pension credit. Forget winter fuel payments—pension credit is a really important lifeline for low-income pensioners. It is worth an average of £4,000 to those receiving it, and far too many are missing out. I thank my hon. Friend for her work, and I hope that it continues.
Today’s U-turn is an astonishing victory against the Government, whose support has dried up after less than a year in office. When the Government announced their cruel cut to the winter fuel payment, costing 64,000 Bradford district pensioners vital support, experts across the country warned that up to 4,000 lives could be at risk as people were forced to choose between heating and eating. Now that the majority of the winter fuel payment has been restored, do the Government dare to produce a figure for how many pensioners may have lost their life as a result of the Government’s choice to remove the winter fuel allowance?
That is a serious matter. There are poorer households, with people of all ages, that have been struggling with energy bills in recent years. I am sure that all of us across this House want to see those problems addressed. We have also seen increases in food prices over the last few years that are higher than we would like, and it is lower-income households that spend a higher proportion of their budget on essentials such as food, energy and housing. It is the policy of this Government to ensure that we are dealing with all those issues.
(4 months, 3 weeks ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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I will make some progress.
In 2026-27, up to 520 estates claiming agricultural property relief, including those that also claim business property relief, are expected to pay more as a result of this change. That means that around three quarters of estates claiming agricultural property relief will not pay any more than they do now.
The hon. Member for Keighley and Ilkley and the right hon. Member for Orkney and Shetland (Mr Carmichael) asked questions about business property relief and specifically about claims that are not covered by agricultural property relief. Around three quarters of estates claiming business property relief alone—that is, the same proportion that have agricultural property relief, once we exclude those only holding alternative investment market or AIM shares, which are often held for the purpose of avoiding inheritance tax—will not pay any more inheritance tax in 2026-27. All estates making claims for these reliefs will continue to receive generous support, at a total cost of £1.1 billion to the Exchequer. The system will remain more generous than it was before 1992, when inheritance tax was applied at a maximum rate of 50%, including on the first £1 million that was passed on.
Several Members have implied that the change will end the passing-down of farms between generations. I gently point out in response that farmers, agricultural landowners and small business owners did not receive 100% relief on inheritance tax for almost all of the 20th century, yet farms and businesses were very much passed down between generations. Indeed, the tax system will continue to support that process. As the Institute of Fiscal Studies has said, our reforms will:
“still leave…land much more lightly taxed than most other assets”.
These changes should also be seen in the wider context of support we are providing for farmers and rural communities. The hon. Member for Aberdeenshire North and Moray East (Seamus Logan) was wrong in his comments about the Office for Budget Responsibility, as the document produced this week provides no new information. However, he was right about the importance of food security, as was the hon. Member for Great Yarmouth (Rupert Lowe). That is why the Budget committed £5 billion to farming over the next two years, including the biggest budget for sustainable food production in our history. It also committed £60 million to help farmers affected by the unprecedented wet weather last winter. The wider tax system will also continue to support farming—tenants as well as owners—including through exemptions from business rates, the use of rebated diesel and the ability, as I said, to average tax affairs over a number of years.
As we have heard today, the reforms to inheritance tax generate strong views. I understand that. I recognise that a small number of estates will have to pay more. I have not hidden from that today, nor in conversations—
Will the Minister confirm when he and the Government will start listening to the points being made by everybody outside this place—different stakeholders, banks, accountants—
And supermarkets. The Minister and Government are, dare I say it, alone on this point.
Secondly, as he did not allow my intervention earlier, will the Minister confirm why the Government are not taking into account the value and the size of agricultural units when projecting the impact the changes will have on family farming businesses and farming businesses?
The hon. Gentleman raises the question of supermarkets. Supermarkets can talk but there is a lot they could do directly to support our farmers—
I listened to the question and I will make more progress. I have not hidden from what I have heard from individuals across the country about this issue in recent months, including from talking to farmers in mid-Wales and East Anglia. Reform of the reliefs is necessary if we are serious about putting our public finances on a stable footing and repairing our broken public services, including the schools, hospitals and roads that communities across the UK—
No, I am going to finish. Communities across the UK, including in rural areas, rely on those things every single day. We have taken these decisions to make the system fairer and more sustainable and the decisions come alongside significant new investments in farming and support for small business.
Thank you, Mr Stringer, and all those who have spoken today, in particular the hon. Member for Caerfyrddin for securing the debate. I look forward to her concluding remarks.