James Wild MP: speeches

Speeches

• 27 Jan 2026 · Finance (No. 2) Bill (First sitting) · Hansard source

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  As the Minister says, clause 16 addresses a specific but important matter by permitting employers to amend existing company share option plan and enterprise management incentives option agreements, to allow PISCES trading events to serve as exercisable events without sacrificing the valuable tax advantages. Employers frequently offer share options to employees in recognition of their service and commitment, and to grow their businesses, and when employees exercise such options, they naturally face income tax and national insurance consequences. To encourage this form of employee ownership, successive Governments have introduced tax-advantaged schemes, including CSOP and EMIs, that provide relief from those taxes when certain conditions are satisfied.

• 27 Jan 2026 · Finance (No. 2) Bill (First sitting) · Hansard source

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  It is a pleasure to serve under your chairship, Sir Roger, and on the Committee considering this 536-page doorstop of a Bill. We are grateful for the written contributions and evidence provided to the Committee, but I think the usual channels should consider having oral evidence sessions for future Finance Bills, so that people can make important representations on significant pieces of legislation. I will turn to clause 13 and new clause 24 tabled in my name. We need to have an enterprise economy that incentivises investment. The tax regime clearly has an important role to play in helping to achieve that, and in doing so, backing much needed growth in the economy. Clause 13 amends the Income Tax (Earnings and Pensions) Act 2003 to expand the enterprise management incentives scheme. That scheme helps attract, keep and motivate staff by allowing employees to buy shares in the company with tax advantages. That includes no income tax or national insurance contributions at the time of grant and exercise, with gains eventually being taxed under the more favourable capital gains regime, rather than as income tax. The changes in the clause should make it easier for start-ups and growing companies to use the enterprise management incentives scheme, helping them reward staff and link employees’ success to the company’s growth. That is something that we support and the British Private Equity and Venture Capital Association has also welcomed the change. The clause increases the company options limit from £3 million to £6 million, raises the gross asset limit from £30 million to £120 million, and doubles the employee limit from 250 to 500. It also extends the exercise period to 15 years. These are all welcome changes. However, one important element that is not due to change under these provisions is that the scheme allows qualifying companies to grant employee share options up to a maximum value of £250,000 per individual. Has the Minister considered going further and raising the cap beyond £250,000 to attract the brightest and best to grow businesses? In its report on competitiveness, published yesterday, TheCityUK states that, “the UK’s tax schemes such as…Enterprise Management Incentives (EMI) offer lower relief thresholds and tighter eligibility than international equivalents such as the Qualified Small Business Stock regime in the US, weakening incentives to scale and retain activity domestically.” I have tabled new clause 24, which would require the Government to assess and report to Parliament on the impact that the changes have on the recruitment and retention of skilled employees in qualifying companies, on high-growth and innovative companies and on the Exchequer. The Minister referred to the tax information and impact note, but clearly that is a forecast of what the Government hope will happen, not a review of what has actually happened. I think that will be a debate that we have many times as we consider the Bill: a TIIN is not a review of what has actually happened. The numbers that the Minister gave may be higher or lower, but we need to have a post-implementation review. According to the Budget 2025 policy costings, the objective is to increase eligibility to allow scale-ups, as well as start-ups, to access the scheme. That is, of course, something we support. Will the Minister commit to keeping the scheme under review to ensure it is delivering on its aims to support high-growth firms and to consider whether further action, such as on the individual threshold, is needed? Given the substantial investment, can the Minister clarify what behavioural assumptions underpin these projections? How many companies just above the existing threshold are expected to utilise these expanded limits? The BVCA has said that the enterprise management incentives scheme is “long overdue for reform: high growth companies are often unable to grant EMI options due to the constraints of the £30m gross assets and 250 employee limits.” Does the Minister have figures showing how much these limits have actually restricted growth?

• 27 Jan 2026 · Finance (No. 2) Bill (First sitting) · Hansard source

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  I want to get on the record that I do not have a problem with TIINs, but they serve a different purpose from reviewing legislation after the event. I would not want any Treasury officials to feel that the Opposition do not value TIINs. I will speak to clauses 28 and 29 as well as new clause 2, which is tabled in my name. Capital allowances are one of the primary mechanisms through which our tax system supports business investment. They enable firms to deduct the cost of purchasing plant and machinery from taxable profits, thereby reducing their tax liability and helping them to invest and grow, which we all support. The annual investment allowance is perhaps the most straightforward example. It allows businesses to deduct the full cost of most plant and machinery up to £1 million annually, in the same the year that the expenditure occurs. Beyond that, there are the first-year allowances with no annual cap. The most generous of those is full expensing, which the Minister referred to, which provides a 100% deduction for qualifying main rate assets and a 50% allowance for certain special rate assets. Those measures were introduced by the previous Conservative Government in order to stimulate faster investment and drive up what have been, I think it is fair to say, historically low levels of business investment throughout all parties’ periods in government. I think that we are all committed to try and address that. Where businesses cannot or choose not to utilise those more generous allowances, they rely on writing-down allowances. They spread tax relief over several years by permitting a set percentage of the remaining pool balance to be written off annually, with assets allocated to either a main rate or special rate pool, depending on their classification. Clause 28 reduces the main rate from 18% to 14% a year, while the special rate remains at 6%. The relevant date is 1 April 2026 for corporation tax purposes, and 6 April 2026 for income tax. For periods straddling that change, a hybrid rate will apply. New clause 2 would require the Chancellor to produce a report that examines the impact of those reductions on business investment levels, capital investment sector employment, the manufacturing sector, small and medium-sized enterprises and public finances. The 2025 Budget policy costing document presents that as a part of capital allowance reform, but the reduction in the main writing-down rate will alter the cash flow position of capital-intensive businesses, slowing the rate at which they can recover investment costs through tax relief. Businesses with substantial brought-forward main pool balances will see their tax relief decelerate, with corresponding impacts on cash flow and the overall tax benefit. For companies planning significant investment, timing has now become more important. This is yet another structural tax increase on businesses with large asset bases, which will now recover their investments more slowly. Make UK has described this Budget as “a case of two steps forward one step back for manufacturers.” The 4% in reduction in the writing-down allowance is undeniably bad news for business. It is little wonder that polling by the Institute of Directors reveals that four in five business leaders view this Budget negatively, and I think that those findings were replicated across the Federation of Small Businesses, the CBI and many other business organisations. The delayed recovery of capital costs will constrain reinvestment in modernisation and automation, precisely when UK manufacturers are already facing strong headwinds, not least from the very high energy costs that they face in this country. The reduction from 18% to 14% will diminish the speed at which businesses can recover these costs. Has the Treasury assessed the impact on business investment intentions, particularly for small and medium-sized enterprises in manufacturing and logistics? If not, I am sure that the Minister looks forward to supporting new clause 2. Clause 29 is an attempt to balance the changes made in clause 28. It introduces a new 40% first-year allowance from 1 January 2026 for new, unused main rate plant and machinery. The new allowance expands relief to unincorporated businesses and firms that buy assets to lease out, which do not qualify for full expensing or the 50% special rate allowance once they go over the £1 million annual investment allowance. The explanatory notes highlight that this new allowance represents an expansion to include leasing, which we welcome—those activities that have traditionally been excluded from such reliefs. The allowance is not available for special rate expenditure, second-hand or used machinery, expenditure under disqualifying regimes or general exclusions. We support the expansion set out in this clause. While these measures may have good aims, introducing an additional rate adds some complexity to the system. There is also the length of the Finance Bill that we are considering—536 pages of dense text—and that we expect businesses and individuals across the country to comply with, else HMRC will come after them. I urge the Government to monitor closely the impact on business investment and to look at options for a more streamlined or neutral capital allowances structure in future. What steps are being taken to tell businesses about these new allowances and freedoms they have to invest in leased assets—for example, by working with business organisations to get the word out? Opposition Members will certainly do that with businesses in our constituencies. The new allowance will provide some up-front support for qualifying new investment, partly offsetting the impact of reducing the main writing-down rate to 14%. Once again, the Government are giving with one hand and taking with the other. The uplift will be of use for unincorporated and leasing businesses, but for most other businesses with historical or non-qualifying assets, there is no uplift at all. They simply face a slower rate of relief, going down to 14%, stretching allowances over a longer period and affecting their cash flow. The Minister referred to Office for Budget Responsibility forecasts that suggest these combined measures will cost businesses more than £1 billion in 2026–27, rising to around £1.5 billion a year thereafter. That is a significant burden at a time when companies are grappling with weak investment and, to put it bluntly, the higher costs imposed in the first Budget. The £20 billion jobs tax has had a big impact, as we saw in the data earlier this week and as we see in the number of graduates who are struggling to find jobs. As I say, the inclusion of leasing is welcome, but we do think there is benefit in reviewing those measures after the event and coming back to Parliament to explain what has happened.

• 27 Jan 2026 · Finance (No. 2) Bill (First sitting) · Hansard source

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  Clause 34 will amend the Corporation Tax Act 2009 to clarify restrictions on relief for overseas R&D applied to companies across the entire United Kingdom, including Northern Ireland and Great Britain. It applies retrospectively on claims made on or after October 2024. It puts beyond doubt that the geographical restriction on R&D expenditure credit relief applies uniformly across all jurisdictions. Can the Minister confirm that, notwithstanding this clarification, exemptions under the enhanced R&D intensive support scheme still apply to firms based in Northern Ireland?

• 27 Jan 2026 · Finance (No. 2) Bill (First sitting) · Hansard source

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  In her opening remarks, the Minister referred to promoters of disguised remuneration schemes not being eligible for this settlement scheme, which I welcome. Perhaps she could update the Committee on whether HMRC is proactively pursuing such individuals, who caused such distress to my constituents and, of course, to people across the country who were sold schemes, advised that they were legitimate and had been agreed with HMRC, and then discovered they were not and have lost their homes and their life savings as a result.

• 20 Jan 2026 · Topical Questions · Hansard source

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  The Iranian regime is killing protesters in their thousands, and the communication blackout is enabling abuses to happen away from public view. The Minister said yesterday: “They must restore internet access.” —[ Official Report , 19 January 2026; Vol. 779, c. 48.] What are the Government doing with partners, so that we can hear the voices of those freedom fighters?

• 15 Jan 2026 · Business of the House · Hansard source

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  Last year, 1,600 people were killed on our roads. May we have a debate on the Government’s road safety strategy and toughening driving offence sentences, including steps to protect horses and riders such as my constituent Emma and many others in North West Norfolk and across the country who feel increasingly frightened and unsafe due to dangerous and abusive driving on our rural roads?

• 15 Jan 2026 · Covid-19: Financial Support · Hansard source

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  I, too, congratulate the hon. Member for Stratford-on-Avon (Manuela Perteghella) on securing this important debate. I thank all hon. Members who have spoken—I think more than 10 did—about what their constituents suffered and continue to suffer. They set out some very powerful examples. It is almost six years since the first cases of covid were recorded in the UK, after two Chinese nationals travelled here from Wuhan. As has been said, these were some of the most challenging times for our nation. Some 230,000 people tragically died, and there is a very powerful memorial just across the river to remind us; we see it every day. Lockdowns and restrictions were imposed. Choices were made that no Government would want to make. As a newly elected MP, I was faced with the need to vote for and support measures restricting people’s freedom—something that I did not expect to have to do when I came into this place. Clearly, not every decision taken was right. Mistakes were made, as they would be in a pandemic, but overall this unprecedented challenge was met with unprecedented action. On the economy, the subject of this debate, the actions taken by the then Conservative Government protected millions of jobs, and supported businesses and those most in need. When the pandemic struck, the Government acted swiftly. The coronavirus job retention scheme—the furlough scheme—which protected 11 million jobs at a cost of £70 billion, was announced on 20 March. Shortly afterwards, the first lockdown was announced. At its peak, nearly 9 million people were on furlough, preventing widespread unemployment. For the self-employed, a topic covered in most contributions, the self-employment income support scheme was set up and delivered nearly £30 billion, across five rounds of grants, to nearly 3 million individuals. Those schemes provided a lifeline to those whose livelihood was threatened through no fault of their own. Beyond the employment support schemes, eight grant schemes saw £23 billion paid to small businesses. They were administered by local authorities. I pay tribute to the work they did to put in place systems and mechanisms for processing those payments rapidly and getting the support to people who needed it. Through three loan schemes, nearly £80 billion-worth of loans were approved. The bounce back loan scheme supported 1.5 million businesses with nearly £50 billion of funding. It was not only loans that provided crucial support. Some £10 billion was made available in business rates relief to nearly 370,000 premises in the retail, hospitality and leisure sector, and we are now seeing the consequences of unwinding some of that support. VAT for the hospitality sector, which was particularly affected by the restrictions and rules that were put in place, was cut to 5%. I supported the campaign for that cut, as did many Members across the House. That unprecedented package supported jobs and livelihoods across the UK. The Government also acted to help certain groups who faced particular challenges. A £20-a-week uplift was put in place for people on universal credit to help those on the lowest incomes, and rules about eligibility for benefits were relaxed. Additional support for jobseekers through the kickstart and restart schemes was also rolled out. Of course, as the hon. Member for Stratford-on-Avon and other hon. Members have said, the support did not reach everyone. ExcludedUK was established in May 2020 to represent individuals and small business owners who fell outside the main financial support schemes. As has been set out, the group estimates that around 3.8 million people were unable to access full financial support, despite losing their income. Those individuals included the newly self-employed, company directors paid in dividends, and those whose self-employment income was less than half their overall earnings. I know the genuine hardship faced by my constituents in that situation from my time in this House, and from raising constituents’ issues with Ministers. Hon. Members from across the House will remember the constant Teams and Zoom meetings with Ministers, in which we put forward the position of those people, as well as the debates held in the House and the reports by the Treasury Committee and others drawing attention to the situation. The response that was consistently provided was about the challenges in identifying workable solutions for HMRC’s system, which, as the hon. Member for Didcot and Wantage (Olly Glover) said, was unable to differentiate dividends coming from an individual’s company from money from other sources. The cut-off points—the £50,000 threshold—for self-employed people also led to real difficulties and unfairness. The fraud risk, which has been referred to by a number of hon. Members, was one of the reasons given by the then permanent secretary to the Treasury as to why schemes put forward by the Federation of Small Businesses were cited as not being possible. There were changes through the five self-employment income support scheme grants. Frankly, though, the restrictions created the impact on the people to whom hon. Members have referred. The ongoing concerns raised by the campaign merit serious consideration—and the covid inquiry will give them that consideration during the module referred to by the hon. Member for Stratford-on-Avon. Looking to the future, we should ensure that if and when the next pandemic strikes, we have better data, and better systems to put in place support, if needed; Making Tax Digital may help in that regard. We should ensure that rules do not exclude people unfairly. Equally, we must learn the lessons from the pandemic, particularly around the damaging impact of lockdowns, as my right hon. Friend the Member for Tatton (Esther McVey) said; if we do not put those restrictions in place, such huge financial firepower will not be needed. In the pandemic, the pressure for action to help people and businesses was incredibly intense. There were trade-offs relating to time and the checks that could be implemented on support schemes. I recall vividly the clamour for support for small businesses, which I was part of. That led to the bounce back loan scheme, which had limited checks, leading to consequences involving fraud. That scheme, however, enabled lots of businesses to survive that would not otherwise be here today. The Government could have spent months designing the perfect scheme while businesses collapsed and families struggled; instead, they acted to protect lives and livelihoods. Some £410 billion was spent on covid measures—an extraordinary sum that added greatly to our debt. However, predictions by the Bank of England that unemployment would reach 9% were prevented. Unemployment peaked at 5.2%, before falling back to 3.7% two years after the first lockdown. However, a lot of people clearly missed out on full financial support. While there will continue to be debate about the decisions taken and lessons to be learned, undoubtedly our country would be in a far worse place today were it not for the decisions taken at the time.

• 13 Jan 2026 · Topical Questions · Hansard source

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  The Health Secretary has said he is “shocked” at the inability to acknowledge and then remedy state failures. It is now two years since the Hughes report was published, but no timeframe has been set for compensation for the valproate scandal. When will my constituents Colleen and Andy get the redress they need, so that they can make long-term provision for their son?

• 13 Jan 2026 · Finance (No. 2) Bill · Hansard source

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  The hon. Gentleman tempts me on to my next paragraph. Instead of tinkering, the Chancellor should adopt Conservative party policies and abolish business rates for pubs, hospitality businesses, retail and leisure businesses, as well as slashing the average pub’s energy bill by £1,000. That is real help—the Minister can have those ideas for free. The duty increases will also have an impact on the UK’s world-class wine and spirits producers, which together generate £76 billion in economic activity. Across our wine sector, there are more than 1,000 vineyards, including some excellent ones in North West Norfolk, which I recommend. Despite that success, we see the Government putting yet more costs on to the sector; some 60% of the price of a bottle of wine already goes to tax. Instead of listening to calls from the sector to freeze duty, the Chancellor has decided to increase it, and she has failed to fix the small producer relief so that it works for wine makers and distillers. The picture is no rosier in the spirits sector. The Scotch Whisky Association has said that the increase piles additional pressure on to a sector already suffering from job losses, stalled investment and business closures. It estimates that the lost revenue to the Treasury as a result of the previous rise in spirits duty amounted to about £150 million. The UK Spirits Alliance has called the Budget “a sad day for the nation’s distillers, pubs and the wider hospitality sector.” WineGB joins its ranks in pointing out that higher prices will likely lead to lower sales and reduce the Treasury revenue, so the sector could not be clearer. The only people still pretending this is good economics are those on the Government Benches. When the Government should be backing businesses, they are instead choosing to add to their costs. Increased taxes have consequences—they depress demand and revenue. In October, YouGov found that one in four regular drinkers was likely to reduce their alcohol spend this year due to price increases, and the Wine and Spirit Trade Association has called for the OBR’s forecasting assumptions to be reviewed. The Government are putting themselves and the UK on the wrong side of the Laffer curve, which the hon. Member for Stoke-on-Trent Central (Gareth Snell) should read more about—he will be persuaded. Ministers should take fresh advice on the impact of these changes. The UK’s brewers, producers and hospitality businesses are resilient. Frankly, in the face of this Government’s onslaught, they need to be. They are at the heart of our communities, creating jobs, driving local growth and giving many young people their first opportunity in work. Now is the time to support the sector, not tax it more, which is why we will be voting against these measures this evening.

• 13 Jan 2026 · Finance (No. 2) Bill · Hansard source

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  We are debating the measures in this Bill, which was introduced by this Government. I was not involved in the changes that the hon. Gentleman refers to, and I certainly would not have supported hitting the horseracing sector in the way that was proposed. I do not remember that being in a previous Finance Bill introduced by a previous Government; it is this Government who sought to bring forward those measures, but they were roundly rejected, because horseracing supports around 85,000 jobs and contributes £300 million in tax revenue every year. Despite the Government’s climbdown in exempting horseracing from the higher rates, the industry could still feel the consequences of this Government’s approach to gambling duties. When the online betting sector is squeezed, sponsorship is likely to be reduced, and because racing’s funding depends heavily on those partnerships and that sponsorship, we could see an impact on racing. In my area of Norfolk, we are very fortunate to have Fakenham races—I went there to support the British Horseracing Authority’s campaign against the Government’s plans. That venue is synonymous with the area and its identity, and is a source of local employment, not just at the track itself but for the farriers, the pubs, the hotels and the whole ecosystem that supports racing. That is why these clauses in the Bill continue to pose a risk to the sector and other sports, and that risk needs to be accounted for. I now turn to the black market, an issue that was raised by the hon. Member for Stoke-on-Trent Central (Gareth Snell) and my right hon. Friend the Member for Stone, Great Wyrley and Penkridge (Sir Gavin Williamson). The Government have acknowledged the risks associated with taking this approach, which is why they quietly set aside £26 million for the Gambling Commission to combat expansion of the black market, but the same EY analysis suggests that over £6 billion in stakes could migrate to the black market, doubling its current size and undermining the progress that has been made through the existing regulatory framework. The Office for Budget Responsibility has identified potential leakage of around £500 million in lost revenue as activity shifts away from properly regulated markets. Those projections—which again could be wrong, but could also be right—raise legitimate questions about the overall effectiveness of the Government’s approach. When taxes rise too far, behaviour can change and the yield can go down, which is what we will see with a number of the tax rises that the Government have included in their Finance Bill. Rather than reducing demand, activity will move to unregulated markets where consumer protections are weaker, fraud risks are higher, and tax revenue is not collected. I am not sure we have heard a convincing response from the Minister about how that will be addressed and whether those risks have been taken properly into account. Let us look at what happened in the Netherlands, where the Dutch Government raised their remote slots tax rate to 34% last January. Within months, gross gaming revenue fell by a quarter and gambling tax receipts dropped to just 83% of the previous year’s figure, leaving a €200 million shortfall from the projections. Somewhat predictably, the Dutch regulator then reported a huge growth in the number of people accessing unlicensed domains, rising from 200,000 to a million. That should serve as an example of why we should be cautious about the Chancellor’s plans. Experience suggests that changes have unintended consequences, and those risks must be carefully assessed. In winding up, will the Minister provide a bit more clarity about how that will be monitored and what steps the Government will take if there are unintended consequences and those projections prove to be accurate? There is some debate and confusion in the sector and some of the professional bodies about the treatment of free bets and free plays. The sector and those bodies have raised concerns about that. The Budget costings document calculates gambling duty using the gross gambling yield, which is the revenue retained by operators after paying out winnings to customers. However, current law uses a wider measure, which also counts the value of free bets and free plays. That means there is a potential mismatch. Will the Minister clarify that? I am sure she has had representations on it directly. We need to strike a balance with the levels of taxation. The industry is warning that these increases will impact on sports and lead to job losses and more black market activity. New clause 25 seeks transparency and an answer to those concerns. It asks the Chancellor to assess the impact of these rises on horseracing, the black market, jobs and the public finances. That is the minimum that Parliament should expect, and I hope Members will support our new clause.

• 13 Jan 2026 · Finance (No. 2) Bill · Hansard source

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  These changes were presented as some sort of simplification and modernisation, but clauses 83 and 84 nearly double remote gaming duty from 21% to 40% and increase general betting duty to 25%. We will have some of the highest rates of tax on gambling in the world. As we have heard from some Members, the industry has warned that that could have severe consequences for an internationally competitive sector that supports tens of thousands of jobs, underpins horseracing and other sports and already contributes significantly to the Treasury. It is questionable whether these measures will lead to stable, long-term revenue gains for the Exchequer, and there is a very real risk that they will result in job losses and greater use of unregulated operators in the black market. New clause 25 would require the Chancellor to come back to the House and explain what the consequences have been for revenue, sports and horseracing, high street betting shops, the black market, jobs and the public finances. Of course, the origin of these changes owes much to Gordon Brown, who encouraged the Chancellor to hike taxes in order to increase welfare spending. Proponents of higher taxes often suggest that they will not have any consequences, but it is the role of us in this House to scrutinise potential changes and assess the impact after the event. Independent modelling from EY shared by the Betting and Gaming Council suggests that the impact of doubling remote gaming duty could be the loss of 15,000 jobs, and a further 1,700 jobs could be lost as a result of the increase in general betting duty. In total, 17,000 positions located in Stoke-on-Trent, Leeds, Sunderland, Manchester, Nottingham, Newcastle-under-Lyme, Norwich and other areas could be affected. Of course, those are simply projections—they could prove to be pessimistic, and we certainly hope that will be the case—but when unemployment has risen consistently under this Government due to the jobs tax and other costs, such warnings should not just be dismissed. That is why the Chancellor must account for the impact of her choices, as new clause 25 requires. There has been some mention of horseracing. I was pleased to join colleagues across the House in support of the “Axe the Racing Tax” campaign. That is another tax that the Chancellor wanted to introduce, but she was forced into one of her all-too-regular U-turns.

• 13 Jan 2026 · Finance (No. 2) Bill · Hansard source

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  That is very clearly the risk. The British Beer and Pub Association has said that the proposed increases will be damaging to the sector, and we may well see more closures as a result. New clause 26 would shine a light on the real impact that these decisions will have on rural pubs, jobs and businesses. I hope the Minister will consider the new clause and not simply dismiss it by referring to the tax and information impact note, as she did with an earlier group of amendments. That is a prediction of what will happen; it is not a review of what the actuality is.

• 13 Jan 2026 · Finance (No. 2) Bill · Hansard source

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  I think that makes sense, and I certainly agree with my hon. Friend. The Government are having to try to put in place solutions to deal with problems that they have created. If Labour MPs were welcome in pubs across the country, they would hear quite how difficult—

• 13 Jan 2026 · Finance (No. 2) Bill · Hansard source

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  It feels like we are getting warmed up for scrutinising the 536 pages of the Bill upstairs in the Public Bill Committee shortly. It is good to see that the popularity of the topics we are debating has increased as we move on to alcohol duty, which clause 86 increases in line with the retail prices index from 1 February. I am proud to confirm that His Majesty’s Opposition are big supporters of beer, wine, spirits and hospitality businesses. As such, we oppose these tax rises. This £26 billion tax-raising Budget piles pressure on households and businesses that are already struggling because of the decisions of the Chancellor. Prices are high, growth is sluggish and now the Chancellor has chosen to impose another duty hike. Our new clause 26 would therefore require the Chancellor to publish a statement on the impact of increasing alcohol duty on the hospitality sector, on pubs, on UK wine, spirit and beer producers, on jobs and on the public finances. These sectors are already being hammered by this Government’s economic choices. A Government who say that the cost of living is their priority are raising alcohol duty, putting more cost on to people and businesses that keep our rural communities and high streets alive.

• 13 Jan 2026 · Finance (No. 2) Bill · Hansard source

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  Indeed. When we brought in the new duty system, we focused on the strength of alcohol in terms of the tax. We want to encourage more people into the hospitality sector, but the Government seem to have a policy of driving people away from going into pubs—and not just Labour MPs. In government, we recognised the importance of those sectors to jobs, to our communities and to growth, and the simplified duty system, including the two new reliefs—draught relief and small producer relief—were warmly welcomed. My hon. Friend the Member for Kingswinford and South Staffordshire (Mike Wood) made the point that the Government are choosing not to implement similar measures on draught relief. At the 2023 autumn statement we froze alcohol duty rates, and we extended that freeze in the spring Budget of 2024. I am proud to support that record: we had a Government working with the sector, not against it. It gives me no pleasure to say that this Government have chosen a very different path.

• 13 Jan 2026 · Finance (No. 2) Bill · Hansard source

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  They absolutely are. I would be happy to come to my right hon. Friend’s constituency to discuss this over a pint in one of those small rural pubs, which are the hub of our villages and hamlets. Once they are gone, it is very difficult to replace them. The Government clearly have the hospitality sector in their crosshairs, and clause 86 is just the latest salvo. This is no small corner of the economy. Some 3.5 million people are employed directly in the sector, which invests £7 billion a year, yet the industry is being punished by the Chancellor’s decisions and this clause. UKHospitality’s “#TaxedOut” campaign has highlighted the nearly 90,000 jobs lost in this sector. With unemployment now above 5%, young people in particular are paying the price. That is a consequence of the Chancellor’s damaging tax rises, which were supported by Labour Members. Higher alcohol duties, the jobs tax, energy bills and soaring business rates are layering cost on cost. It is little wonder that UKHospitality has called the Government’s approach a “hammer blow”.

• 13 Jan 2026 · Finance (No. 2) Bill · Hansard source

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  On behalf of His Majesty’s Opposition, I wish to speak to new clauses 22 to 24, tabled in my name and those of my hon. Friends. As the Minister set out, clauses 63 to 68 introduce measures to apply inheritance tax to unspent pension assets and other death benefits for deaths occurring after 6 April 2027. This Labour Government have taken taxes to record levels, with £26 billion in additional taxes in this Budget and £66 billion since the election. These tax increases were not mentioned in Labour’s manifesto. Labour is increasing taxes on family businesses, farms, jobs, dividends, savings, motorists and now death. Removing the inheritance tax exemption for pensions could undermine efforts to encourage people to save at a time when people are not saving enough. And what do the Government do? They limit the salary sacrifice pension contributions scheme and introduce a new raid on people’s pensions pots. The Minister did not refer to the impact assessment, but it is worth pointing out that it estimates that 10,500 estates will now become liable for inheritance tax, raising £1.5 billion by 2029, and 38,500 estates will pay more inheritance tax than was previously the case. That is why we oppose this extension of inheritance tax and the underlying principle, to which the Minister seemed to allude, that people’s money belongs not to them but to the state. New clause 22 is straightforward. It would require the Chancellor to set out the impact of these measures on pension saving, household saving decisions and personal representatives. There is real concern—I am surprised the Minister did not address this—about the administrative burden being placed on personal representatives and the effect on the industry. Personal representatives will be required to identify every pension asset, calculate the inheritance tax due and ensure payment within six months, and they will be personally liable if they fail to settle all the liabilities due. In many cases, that deadline would be impossible to meet and must be extended. Furthermore, if a pension fund has to quickly sell illiquid assets, such as commercial property, it may not get the full market value, but the Bill does not introduce a relief where the underlying assets must be sold and the proceeds are less than the value of the assets at the time of death. Late payments will attract interest at 8%. By contrast, someone in self-assessment has 10 months to pay tax on the income they already understand. Both the Association of Taxation Technicians and the Chartered Institute of Taxation have offered some practical solutions, the first of which is to extend the withholding periods. Personal representatives can ask pension administrators to withhold 50% of funds for up to 15 months, but that is simply not long enough for the complex cases I have referred to, particularly where business property valuations have to be agreed with HMRC. Will the Minister consider allowing HMRC to extend withholding in such complex cases? Secondly, the Government should allow instalment payments for illiquid pension assets. Billions of pounds of pensions wealth are in illiquid assets. The Government allow inheritance tax to be paid over 10 years for illiquid estate assets. Why deny the same practical relief for pensions? When this policy was announced, the Office for Budget Responsibility gave it a “very high” uncertainty rating and estimated that behavioural effects will cut the static yield by about 43%; the Government’s own forecasters accept that the changes may well significantly alter saving behaviour. The new clause would simply require the Chancellor to assess that impact and come to the House to make it clear. New clause 23 would require the Chancellor to consult on the impact of clauses 63 to 67, and whether they deliver better outcomes for savers and pensioners. The truth is that the Government rushed the consultation out after the 2024 Budget and followed it with a very narrow technical consultation, which did not consider the principled question of whether this approach to pensions being brought within the inheritance tax framework was appropriate. As the Investing and Saving Alliance told the House of Lords Economic Affairs Committee in its inquiry to which the Exchequer Secretary also gave evidence: “If we were consulted and listened to, we probably would not be having this discussion today, because I do not think pensions would be going into IHT.” Both the chartered institute and the ATT have criticised the Government for consulting on pensions in isolation, rather than in the context of individuals’ wider inheritance tax position. Our new clause is explicit. Consultation must take place to assess whether these changes “deliver better outcomes for savers and pensioners” —wording that reflects the commitment the Labour party made in its manifesto. New clause 24 is essential. It would require HMRC to publish comprehensive guidance on the new rules for pensions and to set up a dedicated helpline. Why does that matter? Because this measure will be incredibly complex in practice. The chartered institute has said that professional executors are already questioning whether they can continue to operate in the market at all. Some firms, we are told, are already leaving the market. If professionals step back, the burden falls on lay personal representatives: often grieving family members or friends, with more errors, delay and potentially a wider tax gap ensuing. Professional indemnity insurers also need clarity, yet when is HMRC due to deliver detailed guidance? Not until spring 2027, just weeks before the changes take effect. That is completely outrageous and far too late. That is why the new clause requires guidance to be published within six months of the Bill being passed. I want to touch on a broader concern that has been raised with me on the potential serious unintended consequences for unmarried couples. Today, couples can anticipate making financial provision for each other via pensions, but if this measure comes into force they will have to look at other options. If one member of an unmarried couple in their 50s or 60s dies with a pension at peak value, the survivor could lose up to 40% of that fund. Are Ministers talking to pension scheme administrators to mitigate the risks for such couples and to provide clear guidance? These clauses increase taxes, add complexity, penalise saving and add stress for grieving families. Despite clause 67, we are also advised that there is still a risk of double taxation of inheritance tax and income tax, which could see beneficiaries paying an effective tax rate of 67%. Our amendments seek to mitigate their worst impacts. The Chancellor should assess the real impact on saving behaviour and personal representatives. She should consult properly on these provisions and she must provide clear guidance, backed by dedicated support. We should be incentivising saving and encouraging people to do the right thing. Extending inheritance tax does the opposite, and we will oppose the Government’s measures.

• 13 Jan 2026 · Finance (No. 2) Bill · Hansard source

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  I am sure that the hon. Member is welcome, but let us be clear that some are not. If I go into a pub, I do not think I will find many publicans who think that this Government are pro-pub. We have a Chancellor who said that she did not understand the impact that her Budget, the revaluation and the removal of the discount on business rates would have. That is staggering. Frankly, it shows once again that she does not understand business and was not listening when the sector and many others warned that that was precisely the impact that her policy would have. The Chancellor is reportedly about to do a U-turn on her business rates raid. She has not come to the House yet to inform us or the sector, but what is being briefed is likely to be wholly inadequate. On the radio this morning we heard Ministers saying that the impact will be limited to pubs, but the hospitality sector, leisure businesses and retail all face huge increases in business rates.

• 8 Jan 2026 · E-scooters · Hansard source

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  There are 1 million privately owned scooters, which are illegal to use on public roads. I declare an interest, having bought one a few years ago in the expectation that I would be able to ride it legally by now, but that is permitted only under state-licensed schemes. Why have the Government extended trials that began six years ago by a further two years, rather than getting on with allowing people to use their e-scooters with proportionate regulation to deliver the benefits of micromobility, particularly in areas such as North West Norfolk that have limited public transport?

• 7 Jan 2026 · Rural Fuel Duty Relief · Hansard source

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  I congratulate the hon. Member for North Devon (Ian Roome) on securing this debate, and I thank all hon. Members for the contributions that we have heard. It was a Conservative Government that introduced the rural fuel duty relief scheme in 2011, and that was in recognition of the fact that remote communities face higher pump prices due to the high cost of transporting and distributing fuel. The scheme was subsequently extended again in 2015 to include more areas across England and Scotland, providing a welcome 5p per litre reduction in prices to help families and businesses in those areas, particularly where they might have only one filling station to choose from. The scheme recognised that rural communities, especially isolated ones, face challenges that justify targeted support. As we have heard from hon. Members, it has proved effective and needed. In the main Chamber, my right hon. Friend the Member for Louth and Horncastle (Victoria Atkins), the shadow Environment Secretary, has been setting out the support that the Conservatives have consistently provided for people in rural Britain; many of my colleagues are speaking in that debate. In government, we demonstrated our commitment to those who live and work in the countryside, including my North West Norfolk constituents. Our fuel duty record underlined that. As well as the rural fuel duty relief, we froze fuel duty every year from 2011. In March 2022, we went further and introduced a 5p cut to fuel duty across the board. That was not merely about tax policy; it was about recognising that, for rural communities, a car or a van is a lifeline, not a luxury. It connects farmers to markets, helps children get to school, helps people get to work or health appointments and keeps rural enterprises in business. Every penny added to the cost of fuel has a multiplied effect in areas where public transport is limited and journeys are longer. Our support for rural communities extended far beyond fuel duty to infrastructure and supporting agricultural businesses, recognising their vital contribution to our country and to the social fabric—what a contrast to what we have seen under this Government. The Government say that the cost of living is their priority, but they are adding to the costs for families and businesses. Inflation was at 2% when the Government came in, and they have nearly doubled it. The much-vaunted promise of £300 off energy bills is nowhere to be seen. In her Budget, the Chancellor announced that Labour would end the 5p fuel duty cut that we introduced. That measure will take effect from September this year, and will see the average family pay £100 a year more. The Road Haulage Association estimates that it will add more than £2,000 a year to the operating costs of a heavy goods vehicle. From April next year, the Government will scrap the 16-year fuel duty freeze that we introduced, and inflation-linked rises will follow. That marks the end of the support offered to motorists through the freeze since 2010, which has saved them £120 billion. That puts in context the modest £5 million or so cost of the rural fuel duty relief. In November, the Chancellor also announced her pay-per-mile tax on electric vehicles, which is set to cost drivers an extra £255 a year. It is little wonder that the RAC has said that simply keeping vehicles on the road has become a significant financial challenge. The Prime Minister has been boasting about the £3 bus cap—a cap that he increased by 50%. Whether it is fuel duty or public transport, the Government are making things harder and more expensive for rural communities. Rural communities are not only being punished at the pump. In the debate, we have heard reference to the family farm tax, which breaks up the farms that form the backbone of our rural communities. The modest change that the Minister has announced is welcome as far as it goes, but given the damage that the tax will do, the Conservatives are committed to reversing it entirely. As well as the increases to fuel duty, business rates will increase, hitting rural pubs and businesses. UKHospitality estimates that an average pub will pay an extra £12,900 over the next three years. The Minister was sent out to defend the farm tax, and he said there would not be changes, but then there were. At Treasury questions, I called on the Chancellor to look again at business rates increases, and the Minister ruled that out then, but we read today that there may be changes. Apparently the Business Secretary has even noticed the damage that the increases will do—presumably not after discussing them in a pub, given that many Labour MPs have been barred. Will the Minister therefore confirm whether the Government are considering making those changes, as the sector and many across the House have called for? The rural fuel duty relief scheme reflects an approach to governing that recognises the distinct challenges and vital importance of our rural communities. We introduced the scheme and extended it, and throughout our time in government we demonstrated that we understand and support those who live and work in the countryside. Given that it is now more than a decade since the scheme was last expanded, and given its modest cost, I fully support a review of the relief. The Treasury often says that it keeps taxes under review, but this measure deserves a proactive review, and I hope that the Minister will commit to one. By contrast, this Government’s tax rise after tax rise make life harder for rural businesses and rural people. Against a backdrop of weak growth and rising unemployment, Labour’s approach sadly threatens the fabric of our rural communities. Those rural communities deserve much better.

• 7 Jan 2026 · Jury Trials · Hansard source

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  The Government’s amendment, which the Minister has signed, refers to the Government’s impact assessment. Have the Government done an impact assessment but are refusing to publish it, or did they announce plans to end jury trials for certain cases without that evidence?

• 11 Dec 2025 · National Plan to End Homelessness · Hansard source

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  I welcome the ambition to end homelessness and pay tribute to the Purfleet Trust, King’s Lynn Night Shelter, the borough council and other groups that are working hard and collaborating to end rough sleeping and homelessness. How will this strategy and the resources help to support their efforts and focus on intervention and prevention and providing more local accommodation?

• 10 Dec 2025 · Conduct of the Chancellor of the Exchequer · Hansard source

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  To bring the Minister back to the debate, it is about honesty and the real-world consequences of the briefing that happened around the Budget. Does the Treasury accept that hundreds of thousands of people drew down their pensions, which is an irrevocable decision—yes or no?

• 10 Dec 2025 · Conduct of the Chancellor of the Exchequer · Hansard source

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  This is a rare and serious conduct motion that calls on the Chancellor of the Exchequer to apologise for misleading the country about the state of the public finances, breaking promises on tax and breaching the OBR confidentiality process—in short, for not being straight with the British people. I was expecting to refer to more contributions this afternoon, but it has been a slightly curtailed debate. [Interruption.] We had the comprehensive introduction from my right hon. Friend the shadow Chancellor. The hon. Members for Harlow (Chris Vince) and for Loughborough (Dr Sandher) were surprised and disappointed that the Chancellor is being held to account not for her personality, but for her conduct. As my right hon. Friend the Member for Beverley and Holderness (Graham Stuart) just said, this debate is about honesty, trust and confidence and what happens as a result, and about the “shenanigans”, as my hon. Friend the Member for West Worcestershire (Dame Harriett Baldwin) put it. On Times Radio this morning, the shadow Chancellor was asked why this debate matters. It matters because the deliberate briefing and misrepresentation of the Budget has damaged workers, savers, pensioners and investors. Let us start with the simple truth: this Government and the Chancellor spun false narratives about the public finances to justify their political choices to increase welfare spending.