Inheritance Tax Relief: Farms

Jim Shannon Excerpts

Monday 10th February 2025 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I should explain that if a Member wants to speak in this debate, they have to be sitting in the hemicycle. That is why I am sitting next to the Minister: because it was the only seat available. [Laughter.] I just wanted to declare that at the very beginning. I am very much opposed to the agricultural farm inheritance tax. The Minister is sitting next to me, so I am going to try to nudge him a wee bit—nudge nudge, elbow elbow, wink wink and all the things we would normally do.

I declare an interest as a member of the Ulster Farmers Union; I understand that there are some people from the Ulster Farmers Union in the Public Gallery today. I am a landowner and a farmer in my constituency of Strangford, and I am here to speak on behalf of my constituents on a subject that will have an effect on every single one of them, whether they realise it or not. Every one of my neighbours’ farms has been passed down from generation to generation. I cannot think of one neighbour who has not had a farm handed down, generation to generation.

[Dr Andrew Murrison in the Chair]

I thank the Ulster Farmers Union, which has worked so hard to provide the information that I will share today. It indicates the depth of the folly of the decision to implement inheritance tax on working farms, and the devastating impact that it will undoubtedly have on food security for the entirety of the UK. For my neighbours, for me and for all the people I know in the Ulster Farmers Union and in Northern Ireland, the land is the farmers’ lifeblood. It is more than land: it is their very reason for existence.

The Northern Ireland Rural Valuers Association, in conjunction with the Central Association of Agricultural Valuers, has used available data to look at the impact of the changes to inheritance tax proposed in October’s Budget. They tell me that 6,000 farming taxpayers in Northern Ireland will be affected by the tax change over a generation. My hon. Friend the Member for South Antrim (Robin Swann) referred to the value of the land. The value of the land in Northern Ireland is more than the value of the land here. I say with great respect to all my English, Scottish and Welsh compatriots—to all my friends in this Chamber—our land is better.

What are the solutions? The Minister is sitting beside me, and I hope he is listening—of course he is. There is a way forward. The Ulster Farmers Union said to me that the value of the land was done in the ’70s, ’80s, ’90s and noughties, which gives an unreal rateable value for today. I suggest that the answer is quite simple: take the threshold from £1 million to £5 million, and all the farmers in Northern Ireland—and in Wales, Scotland and England—will benefit. The threshold is too low, so change the threshold. I say to Ministers and the Chancellor that it is quite simple.

I understand that farmers will be meeting the Chancellor shortly; I look forward to the outcome of that. But I will say one thing: let us change the threshold. Let us give the farmers in Northern Ireland some hope for the future. Let us keep those farms that have been handed down from generation to generation. That is what this debate is all about, or it is for me—I hope the Minister is listening.

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[Sarah Dyke]

I agree with the hon. Gentleman.

Levels of confidence among the farming community are at a worryingly low ebb. The National Audit Office reports that only one in three farmers are confident that DEFRA and its agencies can deliver their proposed changes to schemes and regulations. The family farm tax will only increase pressure on farmers, while burdening with extra uncertainty and anxiety farmers who are already suffering with their mental health. Today marks the beginning of Mind Your Head week. Now in its eighth year, it is a campaign that amplifies mental health awareness, run by the Farm Safety Foundation and Yellow Wellies. This year’s themes are love, positivity and resilience—three characteristics we should show to our farmers.

Recently, the Office for Budget Responsibility assigned any revenue from this tax a high uncertainty rating, stating that any

“yield from this measure is not likely to reach a steady state for at least 20 years.”

The Treasury projects that the combined changes to agricultural property relief and business property relief will raise approximately £520 million annually. Using HMRC figures on the total cost of each relief, however, the Liberal Democrats have calculated that the proportion attributed to the APR changes will be only around £115 million, confirming that this misguided tax will penalise British farmers for essentially no benefit.

In its report, the OBR reiterates that the measure will hit older farmers hardest, because they will find it difficult to quickly put in place the transitional arrangements to restructure their affairs in response to the pending changes. I recently spoke to a farmer from Martock who told me that their parents, who are in their late 80s, are horrified by this tax raid. They do not want to lose their home and their business, but the lack of time to implement the changes may make that their sad reality. They implore the Government to consult on transitional arrangements that work with them and for them.

I fear that these family farms will instead be broken up and parcels of land will be sold off at a deflated land value to already wealthy landowners, who will simply add to their large land portfolios.

[Jim Shannon]

I commend the hon. Lady on her excellent speech. I echo what she says about the stress experienced by the elderly generation—the mums and dads. They are probably getting ready for the future and settling themselves into handing the land over to their families, but the situation is causing stress, anxiety and depression. She has been at the forefront in addressing mental health in the countryside. It is not only the young farmers who will feel the pressures of this change; it will also be the mums and the dads, the aunts and the uncles, the grannies and the grandads.

[Sarah Dyke]

I thank the hon. Gentleman for making that point. Indeed, a recent survey shows that 95% of young farmers under 40 see mental health as their biggest concern. It is so significant.

I agree with farmers in Glastonbury and Somerton who feel that the thresholds have been set far too low. Some of them have told me that the figures that the Government have arrived at are just plain insulting. Many farms have a land value that is way in excess of any returns that can be earned on their land. As we have heard, farmers are capital-rich but asset-poor.

A dairy farm near Broughton has been a family farm for five generations and more than 100 years. The farmers there have told me that they already struggle to make a living as it is, without having to face the prospect of thousands of pounds each year being eked away from their business when they pass away. Their son wants to come into the farming business, but the proposed changes will destroy his chances of success. The changes will destroy everything that that family has worked so hard for throughout their lives, trying to secure the business for the next generation.

What is so galling is that the family farm tax fails to address the key issue of land being snapped up by wealthy individuals as a tax haven. Like others, I am desperately concerned about the actual number of farmers who will be impacted by the IHT changes. The Government resolutely refer to a figure of only 500. In my view, however, one farm is one farm too many. My point is: where has this figure of 500 come from? The Government claim that it is from the OBR, but the OBR says that is not the case. If it is not, perhaps the Minister can confirm today where this figure has originated from, and how.

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[Robbie Moore]

The hon. Member makes a very powerful point: this is about the choices that the Labour Government are imposing on many of our family farming businesses. Those families are now having to make difficult decisions about whether to look at disposing of land, plant and machinery or livestock to fit an IHT liability that may come down the line. All of that is reducing their productivity, which will have an impact not only on those family farming businesses, but on UK food production and UK food security. That is why I join all Opposition Members in calling on the Government to change course immediately.

Farmers are not multimillionaires. Many struggle to break even. As my right hon. Friends the Members for Beverley and Holderness and for Dumfriesshire, Clydesdale and Tweeddale (David Mundell) have said, the vast majority of returns for our farming businesses are less than 1%, yet in most cases the value of the land on which they sit will be severely affected by the IHT changes, because the threshold that the Government are bringing out is £1 million. When the average size of a farm in England is 200 acres, and we take into account the farmland, the cottage that might exist on the farm, the plant and machinery, the livestock and the growing crops or stocks that may be in store, the value will be significantly higher than £1 million. That is why the Government need to listen to the NFU and its statistics.

[Jim Shannon]

I commend the shadow Minister. He is speaking exceptionally well and encapsulating the opinion of almost everyone in this Chamber. I thank him for that. In my contribution, I referred to the threshold. Instead of being £1 million on a rateable value in the ’70s, ’80s, ’90s and the whole way through, it should be at today’s value. Does he therefore agree that the threshold should be not £1 million, but at least £5 million?

[Robbie Moore]

I say to the hon. Member that the Conservatives have been absolutely clear: we would axe the family farm tax, and we would reverse the changes to business property relief and agricultural property relief, which have such huge and catastrophic implications. In my view, the Government need to go further—not tinker with thresholds, but provide proper, decent certainty to the whole agricultural community by reversing this provision, which will have catastrophic implications that they admit themselves will give the Treasury revenue of only about £500 million. In my understanding, that would keep the NHS going for about 20 hours. Given the detrimental impact that the changes will have, the Government should think about reversing this disastrous policy.

For the 10th time of asking in this place, what impact assessment has the Treasury made of the effect on growth within our entire agricultural sector as a result of the autumn Budget? What about all the other negative implications—employers’ national insurance, the minimum wage increase, the de-linked payments significantly reducing, and capital grants disappearing—even before we start talking about the family farm tax?

When this tax was first announced at the Budget, I thought that maybe our new Labour Government were being naive. Perhaps they did not understand the catastrophic impact their Budget would have on our farming businesses, and would soon change course. After six months, however, the Government have consistently refused to listen to the NFU, the CLA, the Tenant Farmers Association, the CAAV, Opposition Members and others who have repeatedly tried to expose the damaging impact of the tax.

Low-income Countries: Debt Cancellation

Jim Shannon Excerpts

Thursday 6th February 2025 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

What a pleasure it is to serve under your chairmanship again, Ms McVey. I commend the hon. Member for Southgate and Wood Green (Bambos Charalambous) for leading the debate. I spoke to him beforehand, and he told me that he led a debate in this Chamber two weeks ago. I had the debate last Thursday, he has the debate this Thursday, and I have the debate next Thursday in the same time slot—I think he and I are competing for the graveyard shift on a Thursday afternoon. I think that is two each. Maybe it will be exceeded—I am not sure—but well done to him, because this is a subject that we are all interested in, and that is why we are all here.

It is a pleasure to see the Minister in her place. I wish her well in her new role, and we look forward to her response on a matter that I know is close to her heart. I am confident that she will do her best to encourage us all. I also give my well wishes to the shadow Minister, the hon. Member for Romford (Andrew Rosindell). I suspect he is newly appointed—I hope I am right about that—and I wish him well in the role.

The United Kingdom has been involved in various initiatives aimed at providing debt relief to low-income countries over the years, including in Africa, Asia and the Caribbean. We continue as a country to work alongside LICs to ease pressure, which is something we should be proud of. Many will know that we are known for our generosity to other countries. We will always do our best to support, and it is a real pleasure to discuss that. Indeed, Northern Ireland—you will probably know this, Ms McVey—is one of the most charitable regions. I am not saying we are better than anybody else, but we are generous when it comes to charitable giving, and I just wanted to put that on the record.

In December 2024, the World Bank warned that developing countries spent a record £1.4 trillion—my goodness, that slipped off my tongue quite easily, but it is an astronomical figure—to service their foreign debts in 2023, and that interest rates had risen to a 20-year high. It concluded that 38 low-income countries, most of them in Africa and Asia, are in debt distress.

Debt cancellation is a reserved UK-wide policy, but Northern Ireland, Scotland and Wales contribute to the UK’s foreign aid and international development budget, which largely includes the debt relief initiatives for the LICs. The Northern Ireland Anti-Poverty Network has long advocated for the UK’s involvement in providing debt relief to countries struggling with high financial burdens. Has the Minister had the opportunity to hold any discussions with the Northern Ireland Anti-Poverty Network? It is a good organisation that does great work, and it is always encouraging for such organisations to have engagement with Ministers.

It is interesting to look at the at the root cause of the debt. The sad reality is that for many countries, such as those in Africa, it is poverty. It is as simple as that, as graphic as that and as real as that. Poverty in Africa is a long-term and complex issue that impacts millions of lives every day. Political instability, uneven distribution of natural and Government resources, sometimes corruption, and climate change all contribute to this issue. Those who are most affected are often those in rural and remote areas.

There are incredible charities out there, and the hon. Member for Southgate and Wood Green mentioned some of those that contribute regularly. I want to talk about some of the church groups that contribute through their missions. I think first of Eden missions. Every year, I am fortunate to have engagement with those from Swaziland. A young people’s choir comes over and they do some fundraising when they are in our constituency. We do our best to help and support them in every way we can. Every one of the children in that choir has AIDS, because their parents passed it on to them. They are fortunate to have the drugs that help them. Even with those disabilities, their voices are something special.

I think of the Elim church missions. In the Strangford constituency, there are so many—the best thing might be just to name all the churches. There is the Church of Ireland, the Presbyterian Church, the Methodist Church, the Roman Catholic Church and Baptist churches as well. Then there are the independent churches, which contribute greatly. We see massive Christian faith-based volunteerism and energy to support projects in Africa.

I think in particular of Elim, because I engage with it every year whenever it comes to Northern Ireland. It provides schooling, health and work initiatives. That charity does so much. It prepares people for life and for jobs, whether on the farm, as a doctor or teacher, or whatever it may be. It gives people the opportunity to know how to sow the seeds and reap the crops, so that they can live. When they come to Northern Ireland, we see their smiles and we cannot help being lifted individually.

Those are just some of the people who do this work, along with all the other charities and more that the hon. Member for Southgate and Wood Green spoke about, and that others will speak of as well. I have no doubt that every one of us could name groups that work beyond belief to provide aid and support to these communities at a local level. In the conversation about debt relief, however, the policies come straight from the Government. These groups do their work outside of Government, but the Government and the policymakers in this House are of massive importance at international level.

The UK has worked incredibly hard to introduce schemes that ultimately write off or suspend large debt from certain countries. I will give four countries as examples— I think the hon. Member for Southgate and Wood Green mentioned them too. Zambia, Ghana, Chad and Ethiopia have applied to the common framework, which followed on from the debt service suspension initiative that was introduced in 2020. Thus far, an incredible $12.9 million in payments have been suspended, which will go a massive way to easing pressure and providing a little more financial security for those countries. They are struggling—and, as I said, more often than not the reason is poverty. When it comes to Governments repaying debt, where is the tax coming from if people are on the poverty line to such an extent that they cannot pay it?

From 2001 to 2010, at least 49 low-income countries owing debts to the UK had all or part of their debts forgiven. The total amount of debt owed to the UK is now $1.8 billion. There are calls for the UK to strengthen legislation on debt repayments. I know the Minister will give us some thoughts on how the Government can help when it comes to debt repayments. Compelling private creditors to be involved in debt relief schemes is one of the options.

The International Development Committee said that the United Kingdom of Great Britain and Northern Ireland is “uniquely placed”—that is the Committee’s opinion, and it is mine, too—to legislate, because 45% of sovereign debts, a large amount, are governed under English law. Is that the Minister’s intention? If we have the ability to legislate, as I understand we do, I suggest, very respectfully, humbly and kindly, that we should.

The scale of debt that is owed is huge. We have done our bit recently to ensure fairness to other countries. I thank the Minister and the Labour Government, and the Conservative Government beforehand, for all that they have done. Debt has a huge impact on the development of LICs. We must take that into consideration without forgetting that there are other means through which we can receive payments back. For example, would it be an option for countries to give us something back in kind? I look forward to hearing the Minister’s plan to ensure that we protect LICs without putting the development of our own country at risk.

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[Andrew Rosindell]

I respect the hon. Member’s point, but she did say that we should pay what we owe. All kinds of arguments can be put forward about what we owe, but it is a matter of opinion. Today we should bring unity and look for solutions, rather than making this a political issue. We can achieve more for developing countries if we work together, rather than looking at where things have gone wrong or right in history and at who may owe what, depending on what is going on in the world today. I do not think that will get us very far, so we should move on from that and focus on how we restructure the repayment of debt, and how we can develop a better system globally to deal with this issue, rather than looking too far back into history.

It has been clear to me, right from when I stood for Parliament for the first time, that this issue needs to be addressed. That has been confirmed by the passion that hon. Members have shown in today’s debate. Debt relief deserves serious consideration, and the Opposition recognise that. Unsustainable debt burdens can be huge and significant impediments to economic development and growth, trapping nations in a cycle of poverty. However, I believe that we must approach this matter in a responsible way, with both caution and pragmatism.

If pursued, debt relief must be conditional and tied to a strong policy of fiscal responsibility measures, so I hope the Minister will provide assurances that any recipient countries would be expected to implement sound economic policies, tackle corruption and take steps to prevent future over-borrowing. I do not think the Minister can disagree that without those safeguards, we risk creating a system in which there is financial mismanagement in perpetuity. We should focus on rewarding the expense of responsible governance. Making the hard-pressed British taxpayer foot the bill is not acceptable to most of our constituents, and we need solutions. We need to solve these problems and not see this as a one-way street.

If the United Kingdom taxpayer’s money is involved, I want the Government to tell us how they will ensure that such relief also serves the interests of the British people. During these difficult economic times, we must justify every single penny spent by the Government and always be mindful that it is our constituents’ money, not the Government’s. Debt relief must become not an open-ended commitment, but a strategic tool that strengthens bilateral ties and ensures geopolitical stability.

I hope the Minister can tell us how the Government intend to prioritise sustainable development, and what mechanisms are in place to monitor that. I also hope she will agree that the focus should be not on perpetual aid or blanket debt forgiveness, but on fostering economic self-sufficiency. That is the only sustainable way forward. We must also consider how the United Kingdom can play a meaningful part in helping low-income countries to develop their domestic industries, improve resource management and reduce their reliance on foreign debt. Without those structural changes, would debt relief simply serve as a temporary fix, or would she prefer to have a system that offers a sustainable solution? That is what the Opposition want.

[Jim Shannon]

I would never wish to be anything other than supportive of what the hon. Gentleman says, but everyone who has spoken so far has mentioned the charities and groups that contribute and sometimes fill the gap. May I ask, respectfully, if some recognition could be given to those groups?

[Andrew Rosindell]

The hon. Member touched on this in his speech earlier, as did the hon. Member for Melksham and Devizes. That is another new constituency name, and I think it includes Chippenham. Is that part of the hon. Gentleman’s constituency?

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[The Economic Secretary to the Treasury (Emma Reynolds)]

Thank you for calling me, Ms McVey. It is a pleasure to serve under your chairmanship for the first time, and I am sure not the last.

I thank the hon. Member for Southgate and Wood Green (Bambos Charalambous) for drawing attention to these issues and for bringing this debate on debt cancellation to Westminster Hall today. I also thank the other Members, whose speeches have made for a rich discussion on this issue. I will mention them briefly and then hope to come to everyone’s questions, should time allow. I thank the hon. Member for Strangford (Jim Shannon) for his kind words about my appointment—I am still early in my time in this role. I also thank him for underlining the importance of the role of charities in the development work that they do in low-income and vulnerable countries.

My hon. Friend the Member for Loughborough (Dr Sandher) spoke with great passion about his experience working in Somaliland. He brings great insights to the House after working in that capacity previously. I thank the hon. Members for Melksham and Devizes (Brian Mathew) and for Esher and Walton (Monica Harding) for stressing that the UK needs to restore our leadership on international development. I will come to some of their questions later in my contribution.

I also want to thank my hon. Friend the Member for Clapham and Brixton Hill (Bell Ribeiro-Addy) for raising crucial points about the situation that many low-income countries vulnerable to the impacts of climate change find themselves in. I will say a little more about that, too.

The Government are highly concerned by the debt challenges faced by many low and middle-income countries, with 3.3 billion people living in countries that spend more on servicing their debt than on health or education—a point made by many hon. Members. Among low-income countries, 10 are currently in debt distress and 25 are at high risk, and there is an urgent need to address the vulnerabilities. As a Government, we are fully committed to tackling unsustainable debt burdens in a way that supports development needs and helps countries address those vulnerabilities.

We are acting in three key ways. I will attempt to answer questions, particularly from my hon. Friend the Member for Southgate and Wood Green who secured the debate, when discussing the three key ways. The first is on addressing liquidity challenges; the second is on ensuring effective debt restructurings; and the third is on promoting debt resilience.

First, on addressing liquidity challenges, we are working with international partners to address immediate liquidity pressures facing many countries, which are crowding out vital spending on climate, health and education. We support the IMF and World Bank’s three-pillar approach, which is designed to support countries with high debt repayments. The first pillar is focused on action from vulnerable countries to improve revenue mobilisation and implement sound economic policies. The second focuses on ensuring that countries receive new flows of finance at concessional rates from international financial institutions and other development partners. The final pillar looks at providing case-by-case action to reduce the cost of existing debt burdens where needed.

Secondly, we are working to address debt vulnerabilities through improving the effectiveness of debt restructurings for countries in debt distress. The G20 common framework remains the best mechanism for co-ordinating debt restructurings to address unsustainable debt burdens, but further progress is needed.

The UK is working closely with the G20 and other international partners to ensure the framework delivers more timely, orderly and predictable debt restructurings. I know that is high on the priority list of the South African G20 presidency this year. The UK will be pressing for rapid implementation of the lessons learned from the common framework, which were agreed under the Brazilian presidency of the G20 last year.

The private sector, which has been mentioned by many hon. Members, must also play its part in debt restructuring efforts. We are actively engaging with private sector partners—for example, through the global sovereign debt roundtable—to ensure continued private sector support for addressing the debt challenges faced by countries, leveraging the City of London’s leading role in sovereign debt markets.

Several Members, including my hon. Friend the Member for Southgate and Wood Green, mentioned the issue of private creditors and whether we needed legislation to force them to participate. The Government are not currently seeing evidence that private creditors are refusing to participate in debt restructurings. Recently, private bondholders have agreed to debt treatments for common framework countries, including Zambia and Ghana. We are working closely with the private sector through bilateral meetings, engagement with representative institutions and Paris club discussions.

Hon. Members also raised the issue of comparable treatment by private creditors. I reiterate that both Zambia and Ghana have reached agreements on debt restructurings with their private bondholders. Official creditors have deemed these comparable with their own restructurings.

My hon. Friend the Member for Southgate and Wood Green raised the need for UK leadership on debt relief, and we heard that from others, too. I highlight that the UK has a strong track record of pushing for effective and holistic solutions to debt challenges, including supporting the IMF’s three-pillar approach for countries facing liquidity challenges and pushing for more effective co-operation and co-ordination under the G20’s common framework. The UK also co-ordinates debt treatment through our membership of the Paris club and our commitments to the G20 common framework in partnership with other creditors.

This is a key point: unilaterally writing off debt owed to the UK would not be in the interests of the UK taxpayer—the shadow Minister, the hon. Member for Romford (Andrew Rosindell), mentioned the UK taxpayer, of course—which would be subsidising ongoing payments to other creditors if done unilaterally. The Government are therefore working closely with borrowers, official and private creditors, and the IMF and World Bank to strengthen the wider debt architecture and provide timely and co-ordinated restructurings for countries, where needed to support holistic debt sustainability for low-income countries.

The third way that the Government are pursuing this issue is through tackling unsustainable debt by promoting greater resilience in debt markets. In response to the shadow Minister, I mention that the UK is committed to provide sovereign financing on sustainable terms and to act in an open and transparent manner to support global debt sustainability.

We are playing a leadership role internationally in several key ways. The hon. Members for Melksham and Devizes and for Esher and Walton asked what the UK was doing to provide leadership.

[Jim Shannon]

My contribution, not that it was better than anybody else’s, put forward the idea that the countries we are helping with debt might be able to supply us with some goods as a way of paying us back, rather than making a financial repayment. Is that something that the Minister and the Government would look at?

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.

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.

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[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—

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[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.”

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.

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.

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.

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.

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.