Sarah Olney
MP for Richmond Park · Liberal Democrat · United Kingdom
“On the same day that the Chancellor stood up and claimed that his growth mission was working, it was reported that 4,000 more manufacturing jobs were being cut in the west midlands.”
“Earlier this year, we called for the Government to review their tariffs on the steel sector due to the impact they would have on our manufacturing and defence industries, yet Ministers will not even negotiate a new growth and defence partnership with the EU that would unleash our auto industry by removing crippling rules-of-origin trade b…”
“Like everybody else, I thank the hon. Lady for her incredibly important work in this field. Alongside my constituent Philip Pirie, I have been calling on the Government to launch a public health campaign to tackle the stigma around suicide.”
“The former Chancellor invested a significant amount of political capital into driving forward the white elephant project of building a third runway at Heathrow on the basis that it would deliver economic growth, but the Government’s appraisal report states that the net present value of expansion is between minus £23.4 billion and minus £6…”
“The Liberal Democrats supported the passage of the Steel Industry (Nationalisation) Bill, but we tabled amendments, in my name and in those of my hon. Friends, to increase the provision of scrutiny and transparency under the Bill.”
“Earlier this year the Minister for roads, the hon. Member for Wakefield and Rothwell (Simon Lightwood), wrote to me to say that Hammersmith bridge in my constituency would be a suitable candidate for the structures fund, but Hammersmith and Fulham council has just decided not to make an application on the basis that the structures fund is…”
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“Friend the Member for Stratford-on-Avon and think about how they can do more to support self-employed people, contractors and small businesses, who contribute so much to our economy.”
“Thank you, Madam Deputy Speaker. I wanted to reflect the value of the self-employed to our economy, and to reflect on how, as we learn the lessons from covid, that group of workers can be supported more broadly. That is a pressing issue for now, but I accept that we are debating what happened six years ago. The extremely challenging period that small businesses and self-employed people went through just a few years ago makes it even more important that the Government address the major challenges that they are experiencing here and now. For many, those challenges include repaying the loans that they took out to maintain their business. Today, as they face increased cost challenges, that continues to be a huge burden. I sincerely hope that the Government will listen to the impassioned speech of my hon.”
“The hon. Lady is making an excellent speech; I am grateful that she has secured this debate. Airports are imposing drop-off charges primarily to increase profits, despite their stated claims of environmental benefits. On the point about transparency, when I inquired of Heathrow how many cars are using its drop-off point each year, it declined to answer. It said that the data was classified as “commercially sensitive”. If it truly believes that raising drop-off charges has a positive impact on customers’ transport decisions and provides environmental benefits, why is it reluctant to share that data?”
“Given that the policy will trigger behaviour change, it is unclear to me that the benefits of this measure will outweigh the potential harm to employment in otherwise thriving businesses up and down the country. I am sympathetic to the Chancellor’s instincts in this matter—I too, think we should be prioritising the needs of entrepreneurs over the protection of inherited wealth—but the likely meagre returns to the Treasury as a result of this policy do not justify the likely impact on employment that will occur if otherwise thriving businesses are forced to be broken up.”
“While not being its principal purpose, one of the advantages of BPR is that it relieves the families of the deceased from involving themselves with complicated business transactions while mourning their unexpected loss. I welcome, of course, the announcement of the raising of the BPR threshold from £1 million to 2.5 million, but that merely reduces the number of companies that will be liable for the tax rather than addressing the issue. There is currently no certainty on either the number of businesses that will be affected or on the amount of additional tax revenue that will be raised by the measure. The OBR has not delivered a costing based on the change to the policy announced in December.”
“For many family businesses, the change in BPR rules will just mean that they have to actively plan for an orderly transition of shares to enable them to take advantage of this provision. But for some families, it is already too late to plan effectively. The largest employer in the London borough of Richmond upon Thames is a family-owned business with the majority of shares owned by the founder, who is in his 90s. Even were the shares to be transferred now, there is little chance that seven years will elapse before his death, and therefore there is every risk that the firm will need to be broken up in order to pay the IHT liability, putting hundreds of jobs at risk. Of course, tragically there is always the risk of unexpected death.”
“Recent experience has shown that UK assets are increasingly being picked up by foreign investors, increasing the risk of job losses, restructuring and head office operations being moved abroad. Forced sales that need to be completed within IHT timescales are unlikely to make their full market value. In a specialised market in which there are few annual sales, one depressed sale value can influence the valuation of other assets in the same class, having a knock-on effect on all company balance sheets. Death comes to us all in the end, being the only certainty in life apart from taxes. The IHT regime recognises and allows for assets to be passed down the generations without being taxed as long as seven years has passed between the date of the gift and the death of the bequeather.”
“Asset sales will already be subject to capital gains tax before the net value can be released to the shareholder by way of a dividend to pay the individual IHT liability, and that dividend itself will be subject to tax, so the asset sale has to realise sufficient cash to pay three separate taxes. Members might argue that assets being disposed of by one company does not take them out of the economy, and indeed our tax system should ensure that assets are allocated to wherever they can be most efficiently exploited, but this change to BPR does not ensure the efficient reallocation of assets from one business to another. It forces the sale of productive assets that were being efficiently used, and there are no guarantees that the asset can be put to its most productive use under its new owner.”
“The value of a family business is often in its fixed assets—typically land, buildings, plant and machinery, as well as patents, copyright and goodwill. The purpose of business property relief was to enable those assets to pass intact from one generation to the next in order for the business to be transferred as a going concern and to maintain steady revenues that guarantee employment and supply chains. Removing BPR from the inheritance tax regime will mean that assets will need to be sold to pay the inheritance tax. That will not only reduce the overall value of the company but limit its ability to generate future revenue.”
“I want to speak to amendments 42 to 47. The Bill fails to recognise the specific way in which family businesses are different from businesses whose shares can be traded. The tax changes announced at the 2024 Budget treat family businesses as though they are a liquid asset or as if their underlying value is expressed in tradeable shares, but family businesses are neither. Shares in a family business have only a nominal value, and it is this nominal value that is transferred upon death. No cash arises from the transaction—unlike with the sale of shares on an open market. That means that money to pay any tax charges arising on the transfer must be made out of the business’s current assets or by disposing of its fixed assets.”
“Q2. The period after Christmas can be a challenging time for many people, and consequently the month of January consistently sees higher rates of suicide than other times of the year, but suicide is preventable and lives can be saved. Education, raising awareness and targeting vulnerable groups are all effective suicide prevention strategies, and I was pleased to see them in the recent men’s health strategy, but I call on the Government to go a step further and launch a public health campaign to encourage discussions about suicidal thoughts and ideation. Will the Prime Minister agree to continue this conversation with me, and will he state his support for a public health campaign to tackle the worryingly high number of deaths from suicide in this country?”
“I thank the hon. Member for securing this important debate. Last year, two important reports were produced: “Mental health inpatient settings: overarching report of investigations directed by the Secretary of State for Health and Social Care” and “Improving support for people with complex mental health difficulties”. They found that therapeutic input improves patient outcomes and results for adults with mental health difficulties. My constituency is home to the Cassel hospital, a tier 4 therapeutic community for adults with complex multiple-diagnosis presentations. Patients there tell me that the treatment is lifesaving and life-changing, but it is currently under a tier 4 review. Does the hon. Member agree that that review should consider the reports I mentioned?”
“My hon. Friend is giving an excellent speech on a topic that is very close to every Liberal Democrat heart. Thames Water is in £17 billion of debt, yet the company continues to progress with the Teddington direct river abstraction in my constituency, with a plant that would be operational for just six weeks a year at a cost of £1 billion. The project is strongly opposed locally on environmental, social and economic grounds. Does my hon. Friend agree that Thames Water should scrap the project and use that money to cut bills?”
“Mr Speaker, “We owe it to future generations not just to have good environmental principles but to act on them. That is why I will be voting against the third runway at Heathrow”— not my words, but the words of the Secretary of State in 2018. Given that Heathrow is already the biggest single source of carbon emissions in the UK, and that expansion will add an extra 8 to 9 megatonnes of carbon dioxide into our atmosphere, can the Secretary of State confirm that it is still his intention to vote against a third runway at Heathrow?”
“On a point of order, Mr Speaker. I asked the Secretary of State a direct question about his former statements and how they conflict with current Government policy. Would you agree that the Secretary of State should have directly answered me?”
“I am really concerned that the Government’s fair funding formula sells many London councils short, such as Richmond and Kingston in the area that I represent. The majority of London boroughs already have lower core spending power per capita than the England average, and several are among the lowest funded councils per capita in the country; additional cuts will impact those councils significantly. London has the highest rate of poverty in the country once housing costs are factored in. According to the Department for Work and Pensions, one in four Londoners lives in poverty, and rising council tax bills will impact those who are struggling the most. With that in mind, what assessment has the Minister made of the impact that rising council tax bills and cuts to services will have on those already living in poverty in London?”
“The industrial competitiveness scheme will support the 7,000 most energy-intensive firms, but it will not launch until April 2027. Will the Government confirm whether the Grangemouth plant will be included in the scheme? Do Ministers acknowledge that if the scheme had been in place earlier, the situation might have been avoided? Does the Minister agree that we need a long-term plan to slash energy costs for households and businesses alike by seriously investing in renewables and decoupling electricity from gas prices? Finally, I must press the Minister on another huge added cost for which the Government are responsible, which is of course the national insurance increase. Will he tell the House what is the tax hit imposed on the Grangemouth plant through the national insurance hike since last year’s Budget?”
“I thank the Minister for advance sight of the statement. I welcome the Government’s announcement that they are stepping in to offer support and protect jobs in this vital industry. We have a duty to safeguard our national security and economic prosperity, and to ensure a fair transition to clean energy. This statement is a step in that direction. We have long been champions of British industry. We are proud of the industrial policies that we introduced in government, and we must never return to the neglect we saw under the Conservatives, who scrapped our industrial strategy. Having said that, we need to see a far more cohesive plan from this Government to support British business, including our chemicals sector. High energy costs are a fundamental challenge.”
“By far our biggest concern was the complete lack of clarity on unfair dismissal and probation periods, which is why we have worked in both Houses to secure a vital concession setting the qualifying period for unfair dismissal at six months. We are proud that when some tried to brush aside the concerns of the business community and others sought to frustrate the process, it was the Liberal Democrats who secured this vital provision. It is the role of any responsible Opposition party to engage constructively and achieve substantial improvements for the good of our country. It could not be clearer that this fair and sensible shift will equally benefit businesses and workers. So many businesses I have spoken to have said that this is the single most meaningful change that could have been made to the Bill.”
“We welcome expanding access to statutory sick pay, improving parental leave and taking steps to address the massive pay gap facing social care workers. We agree with giving those on zero-hours contracts more certainty, even though we proposed what we view as a more practical and balanced way of doing so, and we are pleased to see a unified Fair Work Agency, which we also called for as a way of empowering employees to exercise their rights without fear of any negative consequences. However, we have made it clear that we have significant worries about the specific way in which some of those measures would be implemented, and we have repeatedly raised our concern that crucial detail was being left for secondary legislation.”
“Today we are debating the fourth round of consideration of Lords amendments to this Bill, and this long and protracted process says a lot about the way the Government have approached this legislation. The Bill was initially put together at great speed, missing much of the detail; there was a long series of Government amendments late in the process; and now a major last-minute change on the compensation cap for unfair dismissal has been sprung on businesses and Parliament. Regardless of what one makes of the different measures in the legislation, I think most of us would agree that the process followed in designing it has been less than ideal. Having said that, let me reiterate what has always been the Liberal Democrat position on the Bill: we support many of the aims of this legislation.”
“Lastly, to those in the Conservative party who have been trying to sabotage this crucial compromise on the six-month qualifying period, I simply say that they are acting not in the interest of British businesses but only in their own narrow party political self-interest.”
“Will the Minister confirm on the Floor of the House that the Government will conduct an assessment of the impact of the removal of the compensation cap, actively seeking views from businesses, as was indicated to the Liberal Democrats in the other place? On a broader level, will she give a cast-iron commitment that the Government will hold regular debates in both Houses to ensure that Parliament can scrutinise what work is being done to consult businesses and workers on all relevant implementation aspects of this Bill? How are the Government planning to support employers in order to ensure that they have robust policies and practices in place to navigate these changes to the unfair dismissal regime?”
“Employers were not in favour of scrapping the £118,000 cap, and I once again point out that bringing in a change like this at the last minute is not how we build trust between Government and business. However, I note that employers and business groups have been equally clear that this last-minute change must not stand in the way of the far more important changes secured with regard to the six-month qualifying period. Above all else, business values pragmatism, and that is exactly why it wants to see this breakthrough protected and enshrined in law. That is what has guided our approach throughout.”
“I am glad that the hon. Member has raised that. I was coming to that in my speech. Perhaps he could listen with a little more attention. Employers have finally been given the necessary clarity to make hiring decisions with confidence, and we have avoided the danger of unnecessarily slowing down the labour market even further, which would have deprived so many people of vital employment opportunities. That is exactly what the progressive Resolution Foundation think-tank warned of when it said there was a risk that “employers would be nervous about hiring new workers or offering shifts, and this would make life harder for job seekers.” As I pointed out last week, it is really disappointing that the Government decided to muddy this improvement by simultaneously abolishing the cap on compensation for unfair dismissal.”
“It is time that we listened to the business community, which is telling us that the best way forward is to look for balanced solutions through secondary legislation and to put an end to the uncertainty and avoid losing the six-month qualifying period, which we were happy to have helped secure. Continuing to delay the passage of the Bill at this late and protracted stage would risk further uncertainty for businesses, particularly small and medium-sized enterprises, and would jeopardise significant changes that will benefit workers, such as expanded protections against workplace harassment and improved paternity leave rights. I urge Members to be pragmatic and to provide clarity to businesses and workers alike regarding an implementation timeline. That is critical for providing a stable operating framework so that businesses can plan ahead.”
“Many businesses, such as those in the farming and agricultural sector, as well as thousands of pubs, cafés and restaurants, depend on seasonal workers, and any obstacles to hiring them could have a significant impact, exacerbating the long list of challenges they already face, so we must ensure that they are supported as much as possible. Small businesses in our local towns and communities are struggling with the Government’s unfair national insurance rise, high export costs due to Brexit red tape and a business rates system that is not fit for purpose. Struggling businesses mean fewer jobs and lower pay, so it is vital that we take steps to support high street businesses and all those who rely on them.”
“It is so revealing of Conservative Members’ mindset that they cannot believe what I am actually saying is the reason for our change, and that they assume instead that we must have sought some benefit for ourselves. It is so revealing that that is what the Tories think. It beggars belief that the Conservatives, having hammered businesses while in government, are now doing everything in their power to undermine UK plc from the Opposition Benches. I note that the Government have taken steps to improve the clarity of the legislation with regard to seasonal work, introducing measures that will ensure that businesses relying on seasonal work and bodies representing seasonal workers will be properly consulted when secondary legislation is drawn up.”
“On a point of order, Madam Deputy Speaker. I think that is disgraceful. The hon. Gentleman is literally implying corruption. I made it very clear in my speech what the basis of our change in support in the Lords was for, and I think it is intolerable that we are being accused.”
“Fairtrade certification has shown time and again that when we create systems that empower producers, protect rights and support sustainable agriculture, everybody benefits: farmers, consumers and business alike.”
“For that reason, we have called for the immediate restoration of UK aid spending at 0.5% of GNI and a road map to restore 0.7% of GNI as soon as possible within this Parliament. We would ensure that the UK’s international development spending is used effectively, with a primary focus on poverty reduction, including by putting the United Nations sustainable development goals at the heart of the UK’s international development policy, funding genuine partnerships that are rooted in local needs and developed on grounds of mutual respect, and tackling the growing global crisis of food insecurity and malnutrition by increasing the proportion of ODA committed to delivering lifesaving nutrition interventions.”
“That is why the Liberal Democrats would require all large companies listed on UK stock exchanges to set targets consistent with achieving the net zero goal and to report on their progress. We would reform the regulation of our services sector to encourage climate-friendly investments, including requiring pension funds and managers to show that their portfolio investments align with the Paris agreement and creating new powers for regulators to intervene if banks and other investors fail to manage climate risk properly. Ethical supply chains and Fairtrade certification do not exist in isolation. They connect directly to our responsibilities in development and reducing global poverty.”
“We would also introduce a duty of care for the environment and human rights, requiring companies, financial institutions and public sector agencies to exercise due diligence in avoiding specified activities such as child labour or modern slavery in their operations and supply chains, and to report on their actions. We would ensure that all large companies have a formal statement of corporate purpose, including considerations such as employee welfare, environmental standards, community benefit and ethical practice alongside benefit to shareholders, and that they report formally on the wider impact of the business on society and the environment. If we are to take tackling climate change seriously, businesses must play their part.”
“We must work in partnership with business to provide stability, encourage investment and help maximise opportunities for growth and employment across the country. In return we ask that businesses not only commit to promoting skills, equality and good governance, but protect human rights and the environment in the communities where they work, whether at home or in the global supply chains on which they depend. The Liberal Democrats support the introduction of a business, human rights and environment Act to require companies to take adequate measures or conduct due diligence to manage the impacts of their activities on people and the environment both in the UK and globally.”
“As a leader in a global movement to make trade fair, Fairtrade supports and challenges businesses and Governments, and connects farmers and workers with the people who buy their products. It has been a real pleasure to hear from the hon. Members for Ealing Central and Acton (Dr Huq) and for Cumbernauld and Kirkintilloch (Katrina Murray) about their experiences of being active in that movement. Fairness is an important principle for the Liberal Democrats, and that should apply to the way that supply chains are managed by big companies working abroad. In our recent manifesto we committed to introducing a general duty of care for the environment and human rights in business operations and supply chains. Businesses are the principal engines of growth and prosperity in the UK. When businesses succeed, our communities succeed.”
“It is a pleasure to see you in the Chair, Mrs Hobhouse. I thank the hon. Member for Glasgow North (Martin Rhodes) for his work in securing this debate and for his authoritative opening speech, which set out the case for Fairtrade with clarity and thoroughness. It was very impressive. Fairtrade is a global system that connects farmers and workers from developing countries with consumers and businesses across the world to change trade for the better. For more than three decades, Fairtrade has been having an impact on the way that trade works. Fairtrade believes that every farmer and worker should have access to a better way of doing business and a better way of living.”
“I am interested in the Minister’s formulation of free and fair trade. Would he not agree that fair trade is free trade, and that free trade is fair trade? It is about bringing down barriers, which may have been put in place by the larger producers or people with a market advantage. The point is to create a fairer playing field, because that is what free trade is.”
“The Government have repeatedly said that they would introduce permanently lower business rates. We were pleased to hear the Chancellor announce lower multipliers in the Budget, but the recently announced higher valuations will wipe out any benefit that businesses will get from the lower multipliers. UKHospitality estimates that the average increase for hospitality businesses will be 76% over the next three years; that compares with warehouses, offices and large supermarkets, whose rates will go up by 16%, 7% and 4% respectively. Given that it has transpired that the Government were informed of the higher valuations back in September, how does that align with their pledge to support small businesses, and how do the Government plan to meet the commitment, in their own small business strategy, to bring down business rates bills?”
“Thank you, Mr Speaker—I appreciate you giving me the time. I listened carefully to the Minister’s response to my hon. Friend the Member for Bath (Wera Hobhouse). Some £90 billion is being lost every year in tax receipts, 20,000 small firms have stopped all exports to the EU and 33% of currently trading businesses are experiencing extra costs. The Prime Minister’s chief economic adviser has recommended a customs union with the EU. The Deputy Prime Minister has also suggested that countries within a customs union tend to see stronger economic growth, and the Minister agrees, so what is his Government going to do about it?”
“Today marks the final day of the UN’s 16 days of activism against gender-based violence, which focused primarily on ending digital violence against women and girls. The domestic abuse charity Refuge has experienced a 62% increase in referrals of technologically facilitated abuse from last year. That abuse can take the form of stalking via tracking devices, non-consensual sharing of intimate images and recording devices being used by abusers to monitor victims. Will the Minister confirm what steps she is taking with the Home Secretary to help tackle violence against women and girls, with specific reference to technologically facilitated abuse?”
“A couple in my constituency fled persecution from the Egyptian authorities, who accused them of being traitors and terrorists due to their work as professional journalists. They gained refugee status here in 2021 and are now three months away from being eligible for indefinite leave to remain. The UK is their home, but their stability and family life are being threatened by changes in Government policy. I am concerned that the Government have lost sight of the real-life impact that those changes will have on working families living here legally. With details of transitional arrangements still under consultation, will the Prime Minister provide clarity regarding the transitional support available to families already on the pathway to indefinite leave to remain?”
“People endured years of Conservative mismanagement, which is why it is so disappointing that this Government have wasted the last 18 months by failing to pursue policies that promote growth and by imposing an unfair national insurance jobs tax that has stifled business investment.”
“The damage being done to the prospects of our youth, as they struggle with unemployment, will be detrimental to the broader economy in the years to come. Many of those challenges began under the last Conservative Administration. It was the previous Government who undermined farming, agriculture, hospitality and so many other sectors that are dependent on seasonal work by negotiating failed trade deals with the EU, Australia and New Zealand and breaking their promise to reform business rates. Their record is a dispiriting picture of low growth, high interest rates and falling living standards.”
“It is a pleasure to speak in this debate. Training, hiring and retaining a skilled workforce are issues that affect businesses across the country. Many businesses, such as those in the farming and agricultural sectors, depend on recruiting the right people at the right time. Obstacles to hiring seasonal workers can have a significant impact on businesses, which are already struggling with sky-high energy bills, having trouble recruiting the workforce they need and facing high costs in trading with Europe. We are seeing a practically stagnant economy, with business confidence down and unemployment up. Unemployment is particularly prevalent among young people, many of whom traditionally find their first jobs in the hospitality sector, which is the largest employer of young people. However, the sector is struggling to employ new workers.”
“We are pleased that the Government have listened to Liberal Democrat calls for clarity by providing examples of how an employer could approach seasonal demand while complying with the new right to guaranteed hours. These provisions, secured by Liberal Democrat peers, will support workers by giving them more control over their working hours, while ensuring that businesses are properly consulted and given the resources to navigate this new legislation. This weekend, towns across the country mark Small Business Saturday, but many small businesses will have struggled to celebrate, given the challenges that they face. Recent Government decisions, including the devastating business rates hike in last month’s Budget, are causing huge damage to small hospitality firms, with many now considering whether their business remains viable.”
“On flexible work, we will continue to advocate what we think would have been a fairer and less onerous system, based on giving workers a new right to request fixed hours, which businesses would not be able to unreasonably refuse. On seasonal work, we are glad that, thanks to the work of the Liberal Democrats in the House of Lords, the Government have made significant concessions for the benefit of businesses and workers, placing a statutory duty on the Secretary of State to consult with key stakeholders before exercising powers to specify what a “temporary need” is in relation to the provisions on the right to zero-hours contracts.”
“It is tragic to hear of the closure of my hon. Friend’s local organisation. Not only will local people be deprived of the opportunity to enjoy the services it provided, but young people will be deprived of the opportunity to take on their first job. On the Employment Rights Bill, the Liberal Democrats have been clear that we welcome many of the principles underpinning the legislation, but we have been pushing the Government to make crucial improvements to ensure that it properly delivers for workers and small businesses. We strongly believe in giving all workers security over their working patterns, and we are deeply concerned that too many struggle with unstable incomes, job insecurity and difficulties in planning for the future.”
“My hon. Friend is right; the hospitality sector has been disproportionately impacted by the hike in national insurance contributions because it generally employs people on lower wages for a shorter period of time. In particular, the decrease in the threshold has been damaging to many businesses that have that kind of employment pattern. My hon. Friend is right that what we really need to do is boost growth and demand. We think that that could happen by introducing a 5% decrease in VAT for hospitality businesses. We need the Government to give hospitality the tools it needs to grow and help boost the wider economy. Thousands of venues are facing steep and unprecedented cost rises, making this a critical moment for the hospitality sector. I urge the Government to tackle the cost-of-doing-business crisis by adopting our proposal on VAT.”
“The increase in the minimum wage announced by the Government in the recent Budget is welcome and will support millions of low-paid workers, but it is not just workers who need a boost; it is small businesses too. Unless businesses are able to grow, there is a danger that the long list of cost pressures they face will result in fewer jobs being available overall.”
“In 2019, the Conservative Government promised a fundamental review of the business rates system, which they failed to deliver. In their recent Budget, the Government committed to rebalancing business rates, but we saw nothing of the sort. UKHospitality says that the average tax increase for hospitality will be 76% over the next three years. Meanwhile, warehouses, offices and large supermarkets will see bills go up by just 16%, 7% and 4% respectively. The Chancellor said that she is looking to introduce permanently lower business rate multipliers, but the painful reality is that the new higher valuations will wipe out any benefit that businesses might have seen.”