Dan Tomlinson MP: speeches 2025

Speeches

• 4 Nov 2025 · Agricultural and Business Property Relief: Impact on Farmers · Hansard source

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  I have already answered the question about the CenTax proposals, but it is clear from its analysis that the number of estates that would pay more inheritance tax would be more than double the number contained in the proposals that the Government have put on the table. I understand that changes in inheritance tax are always difficult, but last year the Government had to make the decision to raise more revenue to ensure that we could fund our public services adequately, and this change raises half a billion pounds in a fair way.

• 4 Nov 2025 · Agricultural and Business Property Relief: Impact on Farmers · Hansard source

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  I would be happy to meet the hon. Member and Members from across Cornwall to discuss the issues raised in the letter to the Chancellor.

• 4 Nov 2025 · Agricultural and Business Property Relief: Impact on Farmers · Hansard source

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  I thank my hon. Friend for her question, and for her time last week—it was good to meet her to talk about important issues affecting farmers and rural communities. On balance, the Government believe that the policy position that was set out at last year’s Budget is the right one, and we will be continuing with it.

• 4 Nov 2025 · Agricultural and Business Property Relief: Impact on Farmers · Hansard source

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  The Government have assessed the impact of this policy. According to the estimates that we issued at the time of last year’s Budget, about 500 farms would pay additional tax as a result of the changes; those numbers were contested by all Opposition Members, but the CenTax report—which the hon. Member has said that he and others are interested in reading—backs them up and confirms the Government’s estimates.

• 4 Nov 2025 · Agricultural and Business Property Relief: Impact on Farmers · Hansard source

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  Ministers from Government Departments have met organisations including the National Farmers’ Union, the Tenant Farmers Association, the Country Land and Business Association, the Central Association of Agricultural Valuers, the Ulster Farmers’ Union, and the NFU in Scotland and Wales. I also met farmers in the north-east of England only last month. After listening and considering the independent Centre for the Analysis of Taxation report, the Government believe that the approach we have set out is an appropriate one.

• 4 Nov 2025 · Agricultural and Business Property Relief: Impact on Farmers · Hansard source

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  Just a few weeks ago, I met farmers to discuss this and other important issues. The Government believe that even though this tax is a difficult change—I do not shy away from that fact—it is the right change to make, because it is a method of raising revenue in a fair way that helps contribute to restoring the public finances.

• 4 Nov 2025 · Agricultural and Business Property Relief: Impact on Farmers · Hansard source

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  I thank my hon. Friend for his question—he is a strong advocate in this place for his constituency and for farming communities. Just last week, he made the point to me that our farmers and farming communities are crucial to economic and social and cultural life. Along with other Labour colleagues from rural constituencies, he has been working hard to raise the points that matter to farmers, and this Government are doing all we can to support our farming industry. On the specific point about CenTax’s proposals on minimum share, I do not need to direct officials to look at them, because I have read the proposals. It is worth noting that the number of losers from the proposed policy would be more than double the number of people affected by the changes that this Government are making. Over 1,000 estates would be affected by the proposals put forward by CenTax.

• 4 Nov 2025 · HMRC Customer Service · Hansard source

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  My hon. Friend is a very strong advocate for Telford, both for jobs in the private sector and for those in the public sector that we are able to support in his community. I am glad to hear that he, like me, is proud of HMRC’s Telford campus and wants to see it play a key role in improving customer experience through innovation, AI and digital technology. I will be very happy to meet my hon. Friend to discuss those issues.

• 4 Nov 2025 · HMRC Customer Service · Hansard source

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  I thank my hon. Friend for her service on the Treasury Committee; she is doing a sterling job as its Chair. This is a really important issue. Last year HMRC undertook a pilot to try to find a way to reduce fraud in the child benefit system. That measure is expected to save £350 million over the next five years, and we have already managed to prevent £17 million in wrongful payments, but my hon. Friend is right to say that a very small number of claimants had their child benefit incorrectly removed. I am really sorry that that happened. HMRC is writing to those who have been affected and ensuring that people who should get their child benefit payments do receive them.

• 4 Nov 2025 · HMRC Customer Service · Hansard source

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  I thank the hon. Member for raising her constituent’s issue, and I would be happy for her to write to the Department about it. Even though it is not appropriate for me to get involved in an individual taxpayer’s affairs, I hope the Department can improve on that service. We have improved the response rates for both people making phone calls and people getting in touch via the post, but of course there is always more we can do.

• 4 Nov 2025 · HMRC Customer Service · Hansard source

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  I am not sure that the matter that the right hon. Member just raised has much to do with HMRC.

• 4 Nov 2025 · HMRC Customer Service · Hansard source

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  HMRC is committed to improving day-to-day performance and the customer experience. Call waiting times in the first quarter of this year were half as long as in the same period last year, which is good news for customers. At the 2025 spending review, the Government allocated £500 million to make HMRC a digital-first organisation, and that transformation is well under way.

• 28 Oct 2025 · Family Farming in Northern Ireland · Hansard source

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  I do not agree that £1 million is nothing. It is a significant increase and a significantly higher threshold than that for anyone who does not have access to APR or BPR. I understand the point about land values in Northern Ireland, but at the same time, as far as I am aware, farms in Northern Ireland are smaller than those elsewhere. It is also worth bearing in mind that the £1 million relief comes on top of the spousal exemptions and nil-rate bands, so, depending on individual circumstance, up to £3 million can be passed on by two people, free of inheritance tax, and, as has been mentioned, the payment can be spread over 10 years, interest free. That policy design is not seen anywhere else in the inheritance tax system.

• 28 Oct 2025 · Family Farming in Northern Ireland · Hansard source

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  I thank the hon. Lady for that intervention and hope that today we have been able to have that open and public discussion to share the different views on this policy. I would be happy to continue the discussion with her and others who think that the issue is important. Just last week, I made sure to speak to individual farmers to understand their perspectives on the policy. I will continue to engage with people who will be affected by the changes, and with Members in this place. I hope that we can continue those conversations across the aisle. Let me make progress—I can see the time is slipping away from us. Overall, the reforms are expected to result in up to around 520 estates claiming UK agricultural property relief, including those also claiming BPR, paying more inheritance tax in 2026-27. Almost three quarters of such estates will not pay any more tax as a result of the changes, based on the data. As I have already mentioned, CenTax has looked at the Government’s figures and has reached a similar conclusion. Its work concludes that of the estates that are affected, half will see an increase in their effective inheritance tax rate of less than 5 percentage points, and 86% of those estates could pay their entire inheritance tax bill out of non-farm assets.

• 28 Oct 2025 · Family Farming in Northern Ireland · Hansard source

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  The figures that I raised were from research carried out by an independent organisation, CenTax. Profitability and incomes change from year to year, of course, and can change for different types of farms—we can see that beef prices, for example, are higher this year than they have been in the past, and the Government are aware of that. Overall, we understand that the reforms to inheritance tax generate strong views from Members from Northern Ireland and from all over the country, who are here to represent their constituents. I understand that, and I respect and admire the work of Members on both sides of the House in bringing their residents’ concerns to this place. I know that the questions about inheritance and family businesses are deeply personal, and I do not pretend that such changes are not difficult, but I believe that the reforms get the balance right between supporting farms and businesses and funding our public services. They mean that assets will be taxed at a lower rate than most others, and, in this tough context, I think that the Government have made the right decision. I thank the hon. Member for Upper Bann again, as well as all the Members who have intervened today. Question put and agreed to.

• 28 Oct 2025 · Family Farming in Northern Ireland · Hansard source

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  I will happily look at any report any Member recommends I read, so I encourage the hon. Gentleman to send it my way. Since we took office, the Government have taken a range of decisions to seek to restore economic stability and raise revenue to help support our public services, because it was vital to attempt to sort out the mess we inherited, so that we can invest again in the future. The decision to reform APR and BPR was one of the decisions that enabled us to do that. Under the current system, the 100% relief on business and agricultural assets is heavily skewed towards the very wealthiest estates. According to data from His Majesty’s Revenue and Customs for 2021-22, almost half of agricultural property relief across the UK—40%—was claimed by just 7% of the estates that made claims. That is £219 million in tax foregone from just over 100 estates. It is a similar picture for business property relief, which is linked and is treated in the same way under the reforms, with more than 50% of business property relief claimed by just 4% of estates. That is £558 million in tax foregone from just 158 estates. That contributes to the very largest estates paying much lower tax rates than smaller estates and everyday people up and down the country.

• 28 Oct 2025 · Family Farming in Northern Ireland · Hansard source

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  It is a pleasure to serve under your chairmanship, Mr Efford, for my first time speaking from this position in this fantastic Westminster Hall. I congratulate the hon. Member for Upper Bann (Carla Lockhart) on securing the debate, and she spoke with passion and with personal insight from her own family farming background. She spoke clearly about the impact on jobs and employment and on communal life in Northern Ireland, about how essential farmers are to so many of the villages, towns and communities in Northern Ireland and across the whole country, and of course about the importance of farming to family life. The decision to reform agricultural property relief and business property relief from next April was not one the Government took lightly. Over the past 12 months, the Government have listened to the concerns of the hon. Member for Upper Bann, of other hon. Members and of external organisations. The Government and I recognise the strength of feeling on this topic in Northern Ireland and elsewhere across the country. But having listened and discussed the question with a range of stakeholders, the Government believe that the approach set out at the Budget last year is the appropriate one. I recognise and deeply respect the contribution that small businesses and farms make to the economy in Northern Ireland and across the United Kingdom, but I and the Government also recognise the need to restore economic stability, fix our public finances and contribute to funding our public services. As well as all this, we need to make sure we raise taxes in a way that is fair for all of us.

• 28 Oct 2025 · Family Farming in Northern Ireland · Hansard source

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  The hon. and learned Member raises the CenTax report, and it is worth noting some points about the analysis in that report. First, the Government have consistently said that around 520 farms would be paying additional inheritance tax as a result of the reforms announced at the Budget last year. Members from all parties have been turning to the CenTax report as an independent analysis of the Government’s reforms. That report agrees with us on the number of farms that will be affected. That independent analysis conducted separately from the Government comes out with the same conclusion on the number of farms that will be affected and it says that its proposal—the minimum share proposal, which the hon. and learned Member for North Antrim mentions—would more than double the number of estates that would pay additional inheritance tax. I do not think the right way forward is to have the number of estates that would be affected increase from about 500 to, I think, about 1,200. I have looked at the report, which has been raised by Members from all parties, but I do not think it is the silver bullet that others have concluded it could be. The context I just set out is why we are changing how we target agricultural property relief and business property relief from April next year. We are doing so in a way that maintains a significant relief for estates, including smaller farms and businesses. Individuals will still get 100% relief for the first £1 million of combined business and agricultural assets. I know that Members know this, but it is worth setting out the position again. On top of that amount, there will be a 50% relief. That means that inheritance tax will be paid at a rate of up to 20% rather than the standard 40%.

• 14 Oct 2025 · Energy Profits Levy: North-east Scotland · Hansard source

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  I believe the hon. Member for Moray West, Nairn and Strathspey (Graham Leadbitter) was slightly quicker in standing up than my hon. Friend. I do understand my hon. Friend’s points. It is very important not to be cowardly in politics, which is why I will make sure that we come forward as fast as we can to set out the approach after the EPL is set to end. This Government, under the leadership of a whole range of Cabinet Ministers, is making sure that we can provide that long-term certainty, not chopping and changing when it comes to our policies on net zero. The hon. Member for Gordon and Buchan mentioned energy security, which links to the challenge we have with energy bills. It is worth recognising the truth that, even if we extracted every single drop of oil and gas in the North sea, that would not make any material difference to people’s energy bills or the prices that people pay at the pump. Oil and gas are traded on international markets, and given the declining basin on the UK continental shelf, domestically produced oil and gas do not do anything to reduce prices. In fact, it is our reliance on oil and gas that leaves British consumers exposed to unstable fossil fuel markets. In closing, this Government are determined to provide a balance—

• 14 Oct 2025 · Energy Profits Levy: North-east Scotland · Hansard source

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  I will first take the intervention from my hon. Friend the Member for Edinburgh South West (Dr Arthur).

• 14 Oct 2025 · Energy Profits Levy: North-east Scotland · Hansard source

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  I disagree that the Government are getting this wrong. We are doing our best to try to find the right balance to support people, industry and jobs. We will continue to provide a balanced, responsible and predictable regime for the UK oil and gas industry, which I hope will continue to drive growth, support workers and communities, protect our energy security and ensure a prosperous future for the North sea as we make our way towards net zero. Our commitment, and my commitment as a Minister, to the future of the North sea is clear, and I will continue to engage closely with the industry, workers and Members across the House on this important issue. I again thank the hon. Member for Gordon and Buchan for securing this important discussion, and I thank Members from across the House for their contributions. Question put and agreed to.

• 14 Oct 2025 · Energy Profits Levy: North-east Scotland · Hansard source

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  Let me first congratulate the hon. Member for Gordon and Buchan (Harriet Cross) on securing this debate. I thank Members from all parts of the House for their contributions so far; I am sure there will be more interventions in the coming 15 minutes. I say to the hon. Member that it is clear how strongly and firmly she seeks to represent her constituents and those of her neighbour, the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie), as a resident in north-east Scotland. That comes across clearly in the House. The UK oil and gas industry plays a significant role in our country, just as it has for more than half a century. Alongside its contribution to our energy supply, it has provided more than £400 billion in production taxes since the late 1960s and created thousands of jobs in the hon. Lady’s constituency and in many constituencies in that part of Scotland and across the country. As we head towards a net zero future, the industry and the region will continue to play a vital role in the energy transition, with which I know the sector is keenly engaged. Between 2018 and 2024, the sector has acted to reduce its emissions by 34%, and we are seeing oil and gas companies make record investments in carbon capture, usage and storage on land and in offshore wind at sea. I agree with the hon. Member for Gordon and Buchan that it is not an either/or; we must have a managed transition in which we do all that we can to protect jobs and industry, and to grow new jobs and industry too. We are all pulling in the same direction; Government and industry are committed to a fair, orderly and prosperous transition for the region, and I am grateful for the opportunity to speak about that today. The aim of our tax regime for the exploration and production of oil and gas in the North sea is to support investment in this vital resource, while ensuring that the country obtains a fair return in exchange for the use of an important national asset. I am sure the hon. Member for Gordon and Buchan will be very familiar with the tax regime, and I am sure that everyone else in the Chamber is, but let me set it out for the benefit of those who may not be. The regime today includes a ring fence corporation tax that is charged at 30%, the supplementary charge at 10% and, yes, the temporary energy profits levy at 38%. As the hon. Member mentioned, that was introduced amid near-record-high prices following the recovery from covid and Russia’s invasion of Ukraine. While we pursue our net zero targets, we must ensure that we meet the country’s energy needs. That involves energy from overseas alongside our own new nuclear, wind and solar, and, of course, domestic oil and gas. With domestic gas production, net of imports, accounting for the equivalent of about a third of UK gas demand, our oil and gas industry supports more than 100,000 jobs, and will continue to play a significant role in our energy mix for decades to come. In supporting those jobs and the important contribution of the sector, our approach to taxation is, in my view, both responsible and proportionate. We believe in the ongoing contribution of the oil and gas industry and its skilled workforce, and the sector continues to benefit from £84.25 in tax relief for every £100 of private investment, with more relief available for decarbonisation-based investments. The oil and gas sector is expected to contribute about £16 billion in tax receipts between this financial year and 2029-30, which is roughly equivalent to the entire year’s NHS Scotland budget. The energy profits levy alone has already raised more than £11 billion since its introduction. Yes, that is less than was forecast at the time, but in a way that should be welcome news for the hon. Member, because it means lower energy bills for people up and down the country who are affected by the cost of living—families in her constituency, and in mine.

• 14 Oct 2025 · Energy Profits Levy: North-east Scotland · Hansard source

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  If the hon. Member would have preferred energy prices to stay at their pandemic levels, and money to continue to flow in from the EPL rather than more people throughout the country receiving lower energy bills, that is, of course, a view that she is welcome to hold. As I was saying, the levy has raised more than £11 billion since its introduction, and is forecast to raise a further £11 billion by 2030. That revenue provides vital funding for our public services, creating sustainable jobs, strengthening our energy security and independence, and supporting the energy transition. The Government are committed to giving the oil and gas industry long-term certainty and confidence in the fiscal regime. The energy security investment mechanism is the price floor within the EPL, and that gives the sector certainty that if oil and gas prices fall for a sustained period, the EPL will cease. That remains Government policy. The hon. Member asked whether the Government intended to de-link, but the Government policy is to stick with ESIM as it stands. I know that Members have expressed concern about the approach to tax and how it affects investment in the oil and gas sector, but we have seen capital expenditure in the sector rise from around £4 billion in 2022 to around £6 billion last year. That is why we introduced pragmatic reforms to the levy at the autumn Budget 2024 and refrained from going further than abolishing the levy’s investment allowance, helping to support the sector’s competitiveness. I want to restate to the House today that the EPL will end no later than 31 March 2030. Working with the sector and stakeholders, the Government published the oil and gas price mechanism consultation on 5 March to give long-term certainty on the future fiscal regime, developing an approach for how we respond to unusually high prices once the EPL ends. As the hon. Member knows, the consultation closed earlier this year. The Government are now hard at work analysing submissions and suggestions, and we will publish our response—I will not say “in due course”; I will say “shortly”. I know that the sector wants certainty from the Government as to what will follow on from the EPL. I hear that, and I am meeting members of the sector this week to hear it directly from businesses. I want this to happen as soon as it can, but I hope the hon. Member will understand that it is not quite in my gift unilaterally to announce the dates and the precise timetable on the Floor of the House. I understand that there is a need for certainty, and the Government understand just how important that is for businesses and workers in the sector. I reassure the House that it is definitely not our intention to wait until the EPL is about to cease before bringing in new legislation to provide that certainty. I want us to bring forward the necessary legislation for the new mechanism as quickly as we reasonably can, to ensure a smooth and orderly transition for the sector. That is hugely important, and for as long as I am in this post I will do all I can to make sure that we can do that; I hear the points made by Members on both sides of the House. The Government are already delivering a fair and orderly transition in the North sea. Across the country, we are driving growth and securing skilled jobs for future generations, and that is just as true in the North sea, where we have seen unprecedented levels of investment in offshore wind and where this Government have signed contracts for two first-of-a-kind carbon capture and storage clusters. This endeavour also includes Great British Energy, which, from its headquarters in Aberdeen, will create thousands of jobs across the country, invest up to £1 billion in clean energy supply chains and, as a publicly owned energy company, ensure that the clean energy revolution is built in Britain. Alongside that, the Office for Clean Energy Jobs will work to ensure that we have the skilled clean energy workforce to deliver those goals, so that this investment unlocks thousands of new jobs, kick-starts growth in communities and industrial towns, and secures a cleaner and more independent energy future for the UK.

• 14 Oct 2025 · Energy Profits Levy: North-east Scotland · Hansard source

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  As I said just a few moments ago, 100,000 jobs are directly or indirectly linked to the work and activities in this sector, and it is vital that we support people with that transition. In the long-term, carbon capture and storage alone is expected to support 50,000 skilled jobs by 2050 as we move towards a clean energy transition. I am acutely aware—I have heard it from Opposition Members, and I am sure that I will hear it from my hon. Friends in a second—that we must get the balance right between the timing of phasing out and winding down production in the North sea, and ramping up the clean energy and good jobs that we need for the future. We have to do all we can to protect the sector.

• 14 Oct 2025 · Energy Profits Levy: North-east Scotland · Hansard source

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  Does the hon. Member really wish to intervene? [ Interruption. ] Go on.