Two days before Christmas, the Prime Minister announced a partial U-turn on a policy which, in my opinion, should never have been introduced.
I am talking, of course, about the family farm and business tax.
When the Chancellor announced this in the 2024 Budget, I spoke immediately about the devastating impact this tax would have on our agricultural sector.
My concern was not just for our nation's food security, but for the welfare of thousands of farmers and our rural workforce, whom Labour had promised to protect. In the following months, my office was inundated with stories about the huge impact it would have on them directly.
Many believe that U-turns are a weakness. I, respectfully, disagree. When presented with new or contrasting information, it is a Government's duty to make the necessary policy changes. What is disappointing and of most sadness to me is the amount of time it took to reach this inevitable conclusion.
To be clear, this is a partial climbdown; the tax is still being implemented, but the thresholds have changed.
In the 14 months after this tax was announced, the impact this would have on farmers and family business owners was plain to see. The Treasury had been presented with data and evidence which showed they had got this wrong. Yet for many months, instead of listening to these concerns, the Government doubled down.
But it is not just on the Family Farm and Business Tax where the Government has been forced to partially U-turn on policy…
We have seen this with the move to restrict Winter Fuel Payments, with the plans for mandatory Digital ID cards for workers, with welfare reforms, with Income Tax thresholds for pensioners solely in receipt of the State Pension, and a few more. All are concerns shared with me by our community, which I have duly raised and reflected in Parliament.
Another policy that I and many others are raising concerns about is the impact of huge increases to Business Rates, particularly to the hospitality sector, such as pubs, cafes, restaurants, hotels, as well as gyms and hair salons. To be clear, this is the tax paid by businesses on the value of their premises.
In the weeks since the Budget, the Government has said it was aware of the impact these increases would have on businesses. Yet Rachel Reeves pushed forward with the uplift, and the Treasury is now searching for ways to support the hospitality sector from the very tax rise Reeves and her Government imposed.
As I write this, we’ve been told for more than two weeks to expect news of support for the sector, but time is ticking as the tax rise is due to take effect in April. I raised this in the House of Commons on 22nd January and was told, “we are looking at this… in the coming days, I hope that the hon. Gentleman will get what he asks for.”
I, like many people, am eagerly awaiting the news and will look for opportunities to raise it.
Nevertheless, and while there is still more to be done, these are welcome changes. I truly hope the announcements relieve some stress and anxiety for many who run a business in our community, are employed in an affected sector, and everyone up and down the country.
