Family Businesses 2025-02-26

Supports the motion, citing a local businessman who fears his life’s work could be dismantled due to unfair taxes. Asks why anyone would want to start a business in the current climate created by the government.

Agrees that the combination of changes such as the living wage increase, cuts to business rates relief, red tape from Employment Rights Bill, and national insurance contributions will harm businesses and kill off growth.

Challenges the shadow chancellor to specify which rights in the Employment Rights Bill his party opposes. Acknowledges serial membership of trade unions but defends questioning.

The Prime Minister's claim about NHS support for farmers is undermined by the removal of a £10 million fund for mental health. This shows that farmers are not being treated as a priority, despite having to pay increased taxes.

Questions whether the wellbeing and food security of farming communities were concerns when the Conservative Government made trade deals with Australia and New Zealand that negatively impacted farmers.

Asks if the shadow Chancellor thinks Liz Truss's policies were good for business investment and confidence, highlighting the lack of mention in the speech.

He questions the Minister about discrepancies between Labour's manifesto and Budget increases in government spending. He highlights that the current increase is eight times more than what was promised by Labour, demanding clarity on this significant difference.

He raises concerns about a small farm in his constituency being affected by new inheritance taxes despite the Minister's claim that only 4% of estates will be impacted. He argues that this affects even the smallest farmers.

She asks about the proportion of small businesses compared to large estates affected by the new inheritance tax rules, seeking clarity on whether the impact is distributed fairly among different sizes of business and farms.

She reports that nearly half of all farms in Northern Ireland will be impacted by these changes and urges the Minister to listen more closely to industry leaders and real farmers who are being affected. She describes a recent meeting as an 'outrage'.

She presents survey results from her constituency indicating that 85% of farms will be impacted by the new inheritance tax, challenging the government's claim that only about one quarter would face additional taxes.

She argues that the Minister is focusing narrowly on claims data rather than the broader picture affecting businesses and farmers. She calls for a re-evaluation of the policy considering all available evidence.

Asked about the proportion of distribution centres for online giants in high street retail, hospitality and leisure properties with rateable values above £500,000.

Agreed with the importance of sustainable funding and criticised the previous Government's lack of stability in providing business rate relief.

Pointed out that while the data indicates 520 estates will be affected, many more cannot plan their businesses accordingly due to unpredictable life events such as death or inheritance tax liabilities.

Responded by stating that three quarters of estates claiming agricultural property relief or business property relief will not pay additional inheritance tax in 2026-27. He also defended the Government's decision to extend the business rate relief for a further year before permanent reforms come into effect from April 2026.

Asked whether the Chancellor’s shaving off one penny on a pint was futile if there were no pubs left to drink in due to increased costs resulting from the Government's budget decisions.

Responded by stating that while difficult decisions have been made regarding employer national insurance contributions, extra support has been provided through draught relief to help pubs succeed. He also addressed the Employment Rights Bill and its aim to end exploitative zero-hours contracts.

Spoke on behalf of the Liberal Democrats, highlighting the importance of family businesses in contributing to economic stability and community resilience through their long-term decision-making.

Raises concerns about high street businesses facing severe challenges due to extra threats from big business and online sales. A joint survey reveals that 65% of hospitality businesses will reduce employment levels, 55% will cancel planned investment, and 22% believe they will have to close their doors.

Conveys real concern about the impact of national insurance contribution changes and reduction in business rates relief on high streets. She highlights the potential for reduced employment levels, cancelled investments, and closures, emphasising its negative economic impacts.

Raises concerns about the impact of national insurance contributions on early years providers like nurseries. She urges the Government to urgently look at these measures' effects and do a thorough impact assessment.

Highlights automation plans by employers due to increased national insurance contributions, potentially leading to job losses and redundancies. She argues that this approach is detrimental to local economies and people's sense of security.

Reiterates concerns about the detrimental impacts on sectors like hospitality and farming, urging against automation as a replacement for employing the next generation. She calls for an impact assessment and asks the Government to reconsider excluding key organisations from national insurance hikes.

Asked Kanishka Narayan about the impact of changes to business property relief on family businesses, expressing concern that such changes could force divestment.

Critiqued the Labour Government's tax policies as detrimental to small family businesses. Argued that policies are creating a hostile environment for business growth and investment, with examples of local businesses facing difficulties due to national insurance increases and employment rights changes.

Supported Joy Morrissey's argument, stating that government policies are damaging for family businesses' ability to invest in hiring people and equipment.

Defended the Labour Government's actions by highlighting measures such as getting rid of zero-hours contracts, introducing day one rights, and abolishing fire and rehire. Emphasised that these policies will be beneficial to workers and businesses in the long term.

Asked Mark Ferguson about Conservative opposition to national minimum wage under previous Labour Government, drawing parallels with historical events like corn laws.

Ferguson argues against the motion, stating that it is an 'inverted pyramid of piffle'. He cites successful family businesses in his constituency and criticises Labour for their stance on supporting small businesses.

Holmes intervenes to ask Ferguson about the extra £800 per employee tax imposed by the Government. Ferguson responds that he has spoken with business owners who are delighted with how their businesses are going and argues against Labour's position on small business support.

Thomas discusses the impact of increased taxes on family businesses, noting that these businesses provide employment for almost 14 million people and contribute £575 billion to the national economy. He cites specific examples from his constituency and argues against Labour's approach to supporting business growth.

Hoare agrees with Thomas, arguing that Labour Members lack experience in setting up and running businesses, which affects their understanding of the impact of their policies on small enterprises.

Evans raises a valid point about the CVs of government members, suggesting they may have business experience but it is not publicly acknowledged. Thomas counters by emphasising the facts and providing specific examples from his constituency to illustrate the negative impact of Government policies.

Brandreth agrees with Thomas, noting that increased costs for UK businesses are making them less competitive against international companies. Thomas responds by emphasising the need for efficient spending of taxpayers' money to support business growth.

Narayan intervenes to question how Labour would balance funding public services with cutting taxes, suggesting an ideological weakness in the Government's approach to supporting businesses.

Evans questioned the opposition's position based on the independent Regulatory Policy Committee report that eight out of twenty-three categories of the Employment Rights Bill were not fit for purpose. He sought clarification whether these points were discussed.

Vince supported Turner's point about antisocial behaviour and crime affecting small businesses, citing similar issues in Harlow.

Lewin intervened to support Labour’s position on the defence budget increase and 6% pay rise for members of the armed forces.

McVey criticised the Chancellor's Budget, arguing it would lead to the death of family businesses that have survived two world wars and other crises. She cited impacts on job losses, economic output reduction, and stunted business growth due to inheritance tax changes, employer national insurance contributions increase, and minimum wage changes.

Smith agreed with McVey regarding the impact of Labour's Budget on family businesses like Vospers vehicle franchise in her constituency facing significant national insurance contribution increases.

Martin discusses the impact of recent economic policies on small family businesses in Tunbridge Wells. He provides examples from local cafés and hospitality industry representatives who are facing difficulties due to minimum wage rises, national insurance contributions, and business rates.

Bennett intervenes to support Mike Martin's points about the challenges faced by family businesses in Mid Sussex. She mentions a specific case of Frank’s Diner facing potential closure due to increased costs.

Morris speaks about the importance of small and family-run businesses in his constituency, highlighting their role in community resilience after natural disasters. He criticises the Conservative motion as a collection of grievances rather than a constructive approach to supporting businesses.

Turner agrees with Morris, highlighting the challenges faced by small food businesses in importing and exporting ingredients. He suggests that this should be a key focus for the review of the trade and co-operation agreement next year.

Cooper expresses concerns about small business growth, citing examples from his constituency where expansion plans are being stalled due to economic conditions. He criticises the opposition for their inconsistent stance on national insurance taxation. Cooper advocates for less regulation and lower taxes to support businesses.

Gittins defends the Labour Government's economic policy, stating that they inherited an economy in a perilous state from the Conservatives. She outlines the Budget's focus on fixing foundations and driving growth through investment in public services such as the NHS. Gittins criticises the opposition for not providing credible alternatives.

Stafford briefly interrupts Gittins but does not provide a full contribution within the given text.

The reduction in hospitality rate relief and the lower earnings threshold create a perfect storm for hospitality businesses, leading to job losses and closures.

Labour's measures will increase unemployment by raising business rates, increasing national insurance contributions, and introducing stricter employment rights that burden small businesses with additional administrative costs. These policies are reminiscent of the 1970s Labour government.

The Employment Rights Bill will impose significant costs on SMEs, particularly through new probationary period requirements and potential liabilities for third-party harassment. These measures will harm businesses without proper legal frameworks in place.

The Chancellor's Budget is damaging to businesses, especially family-owned enterprises, due to increased national insurance contributions and reduced business rates relief. These policies will lead to job losses, inheritance tax burdens, and higher costs for consumers.

The rise in national insurance contributions will impact the cost of products sold by businesses like Eric Lyons' butcher’s shop, hindering young people's job opportunities in hospitality.

Hospitality businesses are facing significant challenges due to reduced rates relief and increased national insurance contributions, affecting their ability to hire new staff.

Small businesses in South Northamptonshire, including farmers and local pubs, will be hit hard by the tax hikes, reducing hiring incentives and apprenticeship programmes, leading to high street closures.

Small family businesses are the backbone of our economy, providing almost 14 million jobs and contributing £575 billion to it. Yet, under Labour, these businesses face a full-scale assault. The 'family business tax' will decimate family-run enterprises by breaking them apart when they should be passed down to the next generation. Businesses like Hamilton’s Tea Room, Borelli’s Wine Bar, Farnham Homes, Kilnside Farm shop, and Elphicks have been cornerstones of our high streets for generations, now facing closure due to rising costs. Labour's Employment Rights Bill will impose a £150 cost on businesses using zero-hours contracts, which provide essential flexibility.

Family businesses are the job creators and innovators in our local economy. The impact of business property relief changes is catastrophic for family-run enterprises like Fibreline, employing 250 people in Keighley. These changes will have dire consequences on investments and employment. Family Business UK data shows that these policies could result in a £9.4 billion loss and the potential loss of 125,000 full-time equivalent jobs from April 2026 to April 2030.

The SNP MP highlights the importance of retaining business property relief for family businesses. He mentions iconic companies such as Baxters, Walker’s Shortbread, Glenfiddich, and Johnstons of Elgin in his constituency which face significant challenges due to proposed tax changes. Leadbitter emphasises the potential impact on job creation and economic growth if these policies are not reversed.

Cross raises concerns about business rates relief not being passed on fully by the Scottish Government, urging Leadbitter to put pressure on his party in Scotland. She questions whether he will support passing on those reliefs to help family businesses.

Wood speaks about the impact of increased national insurance contributions, business rates rises, and regulatory burdens on family businesses. He cites statistics from the Confederation of British Industry and Family Business UK warning that Labour’s changes to business property relief could lead to 125,000 job losses and reduce economic output by £9.4 billion.

Cocking emphasises the importance of small businesses in his constituency and their contribution to local economies and job creation. He argues that proposed policies are a threat to family-owned businesses that have been operating for generations.

Supports the lead MP's view on family businesses not benefiting from increased national insurance and employment regulation. Labour's justification of tax rises lacks understanding of small business impacts.

Businesses in his constituency are hesitant to invest due to job taxes and new regulations. He calls for the Minister to outline support measures for family businesses and entrepreneurship.

Questions if small businesses will pay less national insurance as a result of recent budget changes, indicating some scepticism towards Government's economic policies.

Acknowledges the challenges but points to steps being taken to improve infrastructure and reduce barriers for business operations. Emphasises the importance of addressing public transport issues to enable employment growth.

Highlights the significant financial strain on small businesses due to increased employer national insurance contributions and cuts to business property relief. Discusses the negative impact of Brexit on Welsh trade with Europe, calling for removal of trade barriers.

Critiques Labour's economic policies that are causing businesses to cut jobs, wages, and investments. Emphasises the importance of supporting small businesses rather than imposing burdensome taxes and regulations.

Labour's choices will not lead to growth. The family-owned pub is an example of a business that will fall victim to this government’s anti-business agenda. Government has no plans for the pint and should support amendment 38.

Asked if shadow Minister will give way, which he refused due to time constraints. Criticised government's tax on staff behind bars, ban on banter and threat to end cigarettes outside pubs.

Asked Labour Members if they agree that the Weights and Measures Act 1985 protects our pint. Suggested not scaremongering about risk to British pint.

The Minister of State emphasised the Government’s five-point plan to revitalise Britain's high streets. The plan includes reforming the business rates system, collaborating with banks to establish banking hubs, addressing late payments, empowering communities to utilise vacant properties effectively, and supporting small businesses further by freezing the small business multiplier and extending business rates relief for specific sectors. The Minister also highlighted that 50% of small businesses face issues related to late payments, and measures have been announced to tackle this problem through secondary legislation and public consultation on potential primary legislation changes. Additionally, a new business growth service is being created and a small business strategy will be launched later in the year.

Hon. Members acknowledged high street rental auctions since Christmas as a means to tackle persistently vacant properties by putting leases up for auction, which has paved the way for regeneration and growth of new family businesses while benefiting existing ones from increased footfall.