Harriet Cross
MP for Gordon and Buchan · Conservative · United Kingdom
“The pig sector in Scotland is down £5.7 million since January this year, with continued losses almost guaranteed if prices remain suppressed. Almost half of those losses—more than £2.5 million—are in my constituency.”
“The changes will include principles such as mandated written contracts, a clear pricing mechanism, mutually agreeable term lengths and fair notice periods. Those regulations will not immediately resolve every challenge facing the sector.”
“While I absolutely understand and appreciate the fine margins in hospitality, not least due to rising costs and seemingly ever-increasing taxation, and the tight budgets of our local authorities, more needs to be done to ensure that local British produce, be that pork, beef, lamb or other farm outputs, can be prioritised and offered to Br…”
“The Scottish pig industry is facing even more acute pressures than those in England. With just one single processor in Brechin and distances too large to transport the pigs for processing south of the border, Scottish pig farmers are seeing an even lower standard pig price than their English counterparts.”
“It feels like we have been lucky not to see cases of African swine fever, foot and mouth or any other significant livestock disease enter the UK. The UK’s biosecurity system cannot rely on luck, because the consequences of any of these diseases entering the UK and our livestock is hard to overstate.”
“There is real and growing concern about the emergence of diseases such as African swine fever and about foot and mouth entering the UK and infecting our livestock—no one needs reminding of the devastation that the 2001 foot and mouth outbreak had.”
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“I have spoken about the farmer whose wife died earlier last year, who also realised by the end of the year that they were going to lose their farm. However, the Government did not want to listen. They would not to listen to the stories coming from our farmers. We have heard about the fact that farmers only make 1% profit. As my right hon. Friend the Member for Beverley and Holderness (Graham Stuart) said, what other businessperson would take a 1% profit and want to continue that life? We have also heard about how investment in farms has fallen off a cliff since this policy was introduced. If we do not invest in or encourage investment in farms, how will we increase profitability?”
“In the 103 days since the Budget and the Chancellor turned farmers’ lives upside down in this country, we have heard stories from farmers across the UK, and will hear more today. Labour Members marched out stories of their own farmers; a few months ago, they did not hear anything from their farmers, but suddenly they have a voice. It is good to hear that they have been listening and now are actually representing those farmers’ voices. Farmers have been telling us for months about the impact the IHT change will have. I have spoken about the 90-year-old farmer in my constituency whose son is now resigned to the fact that he will have to sell the farm and give up on the livelihood and life he thought he was going to have.”
“No, I do not know of any family farmer who has the sort of money to cover that bill. That is the issue. We are penalising the very people who have fed us, who have supported our rural communities and who have been custodians of the land for generations, to fit whatever the Government’s narrative is with this policy. The unintended consequences also have impacts. There is an impact on hauliers, vets, rural communities, farm shops and workers—they will all be impacted by the policy. It is not just family farmers; they are the start, but the result of the policy spreads through rural communities the length and breadth of the country.”
“Absolutely. I agree 100% with what the hon. Member says, and it will be repeated across the country in rural Labour constituencies and in our constituencies. It does not matter where they are in the country, our farmers will face hundreds of thousands of pounds in IHT bills because of this Government’s decisions—for no other reason. Some balance sheets might say one thing and the Treasury’s might say another, but the reality in rural constituencies up and down the country is that the policy will devastate our family farmers and rural communities. The Government must change course before it is too late.”
“The Secretary of State recently outlined to this House the serious situation with the Yantar—a clear example of the threat posed to our critical undersea infrastructure, and of the work that we need to do to defend ourselves and deter potential attacks. Does that not show that we need to increase our defence spending as quickly as possible to defend our crucial infrastructure and protect national security?”
“We have already seen that if Rosebank does not go ahead £6.6 billion-worth of investment and 2,000 jobs will be lost. Those 2,000 jobs are really important to us in the north-east of Scotland. They are there for sentiment and for confidence, and they are also to show that we have a future. At the moment, it feels like the north-east is being sold down the river and that any opportunity we have is being lost because the Government are so ideologically committed to moving away from oil and gas now, as quickly as possible, and not to doing that when it is right. Are the Government still committed to jobs and security in the north-east of Scotland? It does not feel like that, living up there.”
“Will the Secretary of State confirm that the Court of Session’s judgment on Rosebank and Jackdaw was to do with their consents, not their licences? When he comes to consider his decisions on those consents, he should do so on the basis that these are existing, not new, licences.”
“It is of course welcome that more land is to be brought under the scope of agricultural property relief, but given the introduction of the £1 million cap on agricultural property, is it not somewhat redundant? I know the Government use different numbers, but the industry believes that the majority of farms will be over that threshold anyway, so bringing more land within the scope of APR does not actually make much difference to the bill they will have to pay at the end.”
“I understand the principle of CBAM. However, in practice, if we import fertiliser to increase our food production here, for example, we will reduce our imports of food from elsewhere. It might not balance out exactly, but we would not be changing how much carbon we sent abroad, because we would just be taking it from another mechanism that is not included in the CBAM.”
“We all recognise that trust is important in politics, and we are responsible for building that trust. One way in which we build trust is by being accountable, and the current system gives us accountability to our constituents within the defined area of our constituency. How would first past the post help build the accountability of a named person—a single MP—in that defined area?”
“On aligning hybrid cars more closely with petrol and diesel cars, what assessment has been made of the impact on the hybrid car market and the take-up of hybrid cars, if we are ultimately looking to move away from petrol and diesel in the long term?”
“People might be buying cars now—that is, overnight—that they still have in ’28-29, when the changes come in. They will be making decisions now that will be caught up in future changes.”
“Although we of course welcome a road map as a way to give businesses confidence on corporation tax, we should not get mixed up in the smoke and mirrors of what business taxes are. Because of the Budget, businesses now face many taxes and the uncertainty that they bring. Will we also see road maps for things such as the national insurance rises, the increase in business rates, minimum wage increases and measures in the Employment Rights Bill, all of which have an impact on business?”
“Does the Minister recognise the difference between properties with a use clause compelling them to be used for holiday let accommodation and houses that do not, and that can therefore be used as residential properties? Those two things do not necessarily line up in terms of what the owner can use the property for.”
“Regardless of the uncertainty, we know from the projections that, although the tax intake should peak at about £6 billion, it tails off by the end of the period to £95 million—a huge difference. By the time this spending and the costs have been worked into the system, no matter what happens in terms of uncertainty, at the end of that tax period there will be a huge amount of money that was in the system, but which now has to be filled. This policy, if implemented, will mean that there is a hole in the system at the end of the ’29 period that will need to be filled in some way.”
“I thank the Minister for listing the amendments before the Committee. At Davos last week, the Chancellor announced other amendments that will be made to non-dom status. It is disappointing that they have not been put before the Committee, where they can be scrutinised line by line. Why is that not the case, and when will either a Committee or the House get to see those amendments?”
“We heard earlier that the thresholds for income tax will be unfrozen as of 2028; why will the thresholds for inheritance tax not be? What impact will that have on, for example, agriculture and business property reliefs? Have the Government done an assessment of the number of additional estates that will be brought into inheritance tax beyond 2028, and how many of those will be family farms?”
“In the light of the uncertainty in the OBR’s report; the fact that the policy will hit elderly farmers the hardest and put food security at risk; and the fact that rural communities will suffer the most, given the impact on tenants and young farmers, and the wider agricultural sector, does the Minister really still believe in this policy?”
“Does the Minister accept that the Law Officers’ convention does not extend to questions of recusal or conflicts of interest, and that the House and the British people have the right to have questions on those matters answered transparently?”
“I thank the Minister for her statement, in which she confirmed that the 39 suspended companies are suspended from providing new solid wall insulation under the scheme. Are they also suspended from providing other sorts of insulation, such as external, loft and cavity wall insulation?”
“I welcome the Government’s efforts in bringing us up to speed today, but also in imposing the import ban. I recognise that the ban applies to products from Germany, but does it capture products that may originate there but for which the point of import is outside Germany? What steps are the Government taking to proactively increase spot testing or screening across the country, so that we can get ahead of any possible outbreak?”
“I thank my right hon. Friend for bringing forward this debate, which is so important. Just this morning, I was at the meeting on food security, speaking to poultry farmers there, and they said that they are already taking decisions not to invest in new buildings, directly because they are now thinking of how they need to save for an APR bill. Of course, that has a knock-on effect on other businesses that will be the suppliers, and therefore we come into the BPR argument as well. Does he share my concerns that, if farmers cannot invest in their holdings, they will not be as profitable in future? It is a huge cycle—a self-fulfilling prophecy that will mean that more farms will be impacted down the line.”
“At the Oxford farming conference, the Secretary of State suggested that farms should diversify to be more profitable, but diversification has become a lot less incentivised because that all gets wrapped up into the BPR, as well as the APR. Does that not completely negate the Secretary of State’s argument for diversification if it will all be taken away in tax?”
“The Chancellor referred in her statement to safeguarding national security, which I welcome, but this must include energy security. Yet her changes to the energy profits levy, removing investment allowances and not permitting new licences at a time when we are still reliant on oil and gas, not only undermines our energy security but dwarfs the £600 million that she has brought back from China with the £12 billion of tax revenues that will be lost from the sector. Why, rather than supporting our energy security, is the Chancellor turning her back on the sector, turning her back on these tax revenues and risking selling our energy security to China?”
“Last week was the coldest week of the winter. Also last week, 41.9% of our energy mix was gas and just about 25% was wind. We have heard about issues with gas storage, and the Government are penalising the oil and gas sector by extending the windfall tax, not allowing new licences, and removing investment allowances. It feels like this Government are not taking our energy security seriously. Can the Minister reassure the House that that is not the case, and that he will engage with our oil and gas companies to ensure that we are secure in our energy today, despite what they are trying to do for the future?”
“Next has said that it will increase prices by 1%, directly because of the increases to national insurance contributions, and has warned of slowing growth. With business confidence plummeting, gilts at a 26-year high and growth stagnating, do the Government still maintain that they have an iron grip on public finances, or will they admit that their Budget has done exactly what the Conservatives warned: increase costs, increase prices and reduce growth?”
“The changes to national insurance contributions mean that Aberdeenshire council has to find an extra £13 million in its budget this year. How will that help with education standards and health in Aberdeenshire?”
“The Chancellor, as we know, is literally making farmers decide between selling their farm, their land, their buildings or their machinery to raise the funds. This will leave farms commercially unavailable or severely damaged, and we are talking about farms in our constituencies across Scotland, including many of those of the Labour Members here. We have heard others talking about whisky, so I will touch on that just briefly. The Prime Minister stood in a whisky distillery in Scotland and promised to back the Scotch whisky industry to the hilt, but he failed to mention that he was going to increase tax by 3.6%, bringing the tax on a bottle of whisky to over £12 for the first time.”
“We know that the Treasury figures are incomplete. They do not consider farms where only BPR had been claimed. Labour seems to think that all farmers are married, that both spouses will be able to pass on the farm at the same time and that, effectively, it is okay to force farmers into early retirement—for them to have to leave their family home or pay full market rent to stay at the property where they have lived their entire lives. The Treasury is hiding behind the claim that only 2,000 estates will be affected, but the Country Land and Business Association, the National Farmers Union and the National Farmers Union of Scotland say that the number of farms affected will be more like 70,000. These figures need to be considered.”
“As I have mentioned, Aberdeenshire council now needs to find £13 million to cover the NICs rises, and that is on top of the £40 million black hole it already faced due to north-east councils being so poorly funded by the Scottish Government. Moving on to other matters, the changes to business property relief and agricultural property relief are cynical, cruel, misguided and absolutely damaging to the key sectors of our economy. Family businesses up and down the country, including in Scotland, are the backbone of our economy. These changes will decimate family businesses, who have been nurturing for generations, who are the centre of their communities and who employ over 14 million people nationwide. The changes to APR, which I have spoken about a lot, demonstrate the Government’s complete disconnect from rural farming and ways of life.”
“Take weeks like this in Scotland, including in my Gordon and Buchan constituency, where many businesses have not opened because of snow and ice; the bill for this tax is still racking up, despite them not being able to trade. Of course, the effects of NICs are felt more widely, not just by businesses. Charities, GPs, pharmacies and local authorities are all also impacted. I have met with my local medical practice in Inverurie, and its NICs bill is going up by £75,000. It cannot pass on that cost, and if it reduced services, its funding would be reduced. What do the Labour MPs who are celebrating the Budget suggest that that practice should do?”
“The scale of this tax rise and the betrayal by Labour, who promised not to raise taxes on working people, including national insurance, is completely unprecedented. For the avoidance of any doubt, and because I know that Labour seems to struggle with this, business owners are working people, and they employ working people—they are working people who contract working people and supply working people, who then can work elsewhere. This NICs rise is a tax on working people across Scotland and the UK, and there is no credible way that that can be denied. It is also an up-front tax and a tax for having employees. Businesses pay it just for having employees on the books, before they even open their doors.”
“I congratulate the hon. Member for Livingston (Gregor Poynton) on securing this debate, although I find it odd that Scottish MPs have been celebrating the Budget, as if it was the best thing ever to come to Scotland, given that it is nothing short of disastrous for so many of the key sectors that underpin Scotland’s economy, communities and livelihoods. The Chancellor spoke, and still does, about protecting working people—and, indeed, about growing the economy in order to help working people—yet her decision to increase employers’ national insurance contributions does exactly the opposite. This £25 billion tax grab from businesses impacts on their resilience, growth, investments, hiring decisions and longevity.”
“Those changes in the Budget have real-life consequences across Scotland, but particularly in Gordon and Buchan, Aberdeenshire, Aberdeen and north-east Scotland. The Budget shows the Labour Government’s fundamental misunderstanding and undermining of Scotland’s economy and communities. From family farms and businesses to distilleries, our energy sector and the high street, the Government have chosen to burden, rather than support, businesses across Scotland.”
“As I said, the Government can give with one hand and take with the other, which is what is happening with NICs; they are taking that money out of councils, so the increase is completely irrelevant. The removal of the ringfence from some budgets has meant that there has been no real-terms increase in the rural affairs budget in Scotland, and that has impacted our farmers—it goes round in circles. On oil and gas, the changes to the energy profits levy and the removal of the investment allowances in the Budget had an instant impact. Apache announced very soon afterwards that it would pull out of the North sea, citing the onerous impact of the EPL. The Aberdeen and Grampian chamber of commerce warned that 100,000 jobs are at risk, and Offshore Energies UK said that 35,000 jobs tied to specific projects are at risk.”
“That means, therefore, that 60% went to everyone else—that 60% of farms in this country rely on APR to pass their farms down to the next generation. They rely on BPR as well. This is the next generation of farmers who provide our food security and who employ people in local and rural areas. Does the Minister not think that that is a really important thing to maintain?”
“I thank the hon. Member for securing this important debate. In my constituency, the A96, which goes from Aberdeen to Huntly and up to Inverness, and the A90 north of Ellon are known as accident blackspots. On these roads, we know that local residents are not going out, because of the fear of an accident, which has an impact on our local economy, and emergency vehicle response times. Does he agree that emergency response times and local economic impacts should be part of the basis of assessments of where safety improvements should be put in on roads across the country?”
“It is widely known that the more impermeable the land—pavements, roads and housing developments, for example—the more likely we are to see flooding. With this in mind, and also bearing in mind the Minister’s response earlier about ensuring that new housing developments are not at risk of flooding, what assessment have the Government made of the downstream impacts of a development and what is happening with flooding further down the valley?”
“The Secretary of State, the Minister for Energy and the Minister for Consumers have all said in this House that the National Energy System Operator’s report shows that the Government’s 2030 target will lower energy bills. However, the report itself explicitly says that it does not do so, and the chief executive officer of the NESO told the Energy Security and Net Zero Select Committee last week that it “did not set out” to determine “what bills are for consumers.” Will the Minister explain those inconsistencies and take the opportunity to correct the record?”
“That is why it is very difficult to model this and answer your question specifically about where we will see business failures versus job losses. Clearly, we are looking at—”
“Again, the situation is deeply frustrating, because we know that the Government passionately want to get people back into work, and we are the answer to that. Right now, however, they are unfortunately limiting the potential of our sector to help with that issue. Kate Nicholls: When you look at the job losses in our sector, it is very difficult to strip out and identify the difference between the business rate changes that we are talking about versus the changes in NI. Steve is absolutely right that, for somebody on the minimum wage or just above at 20 hours a week, the effective increase in the employer’s tax on those jobs is 75%. That is where you will see hours cut and jobs reduced as a result of that change. You cannot just dissociate the two.”
“Some of those individuals absolutely depend on that fixed-hours role, because it is the only thing that they can fit in versus their demands, whether childcare or others. It is heartbreaking to see some of those individuals already starting to lose hours and ultimately jobs, but that will come, in a way. That is just direct employment; we have to think about the supply chain as well. When you are looking at the multipliers and the real impact, I ask you to consider that foundational economic place that pubs prop up. Where are all the tendrils that go out into the community—all those connected jobs, from the butchers to the cleaners, the window cleaners and everything in between, that are sometimes hidden? Every job lost in a pub will be connected to multiple jobs in that community that are dependent on the demand that that pub drives.”
“Some people are already trimming their staff numbers down anyway to try to get ahead of this, so they have some degree of resilience. The real frustration is the reverse of what you just said: we pride ourselves on being the place that takes people in. We have some amazing charities in our sector that bring in people who are facing homelessness. We have placed over 600 of those individuals into hospitality, put our arms around them and given them a platform. They have already progressed to phenomenal levels of achievement within our sector. That is what is at risk. Equally, the part-timers are under scrutiny right now, because they are triggering a premium payment for the employer.”
“Q Thank you all for coming. I will aim my question at Mr Alton, but everyone can probably have a go. Mr Alton, you mentioned 15,000 potential closures, and Mr Lord just said 9,000 in Q1 next year. There was also a figure of, on average, 15 employees per pub. That brings us up to about a quarter of a million potential job losses, which will be across the board—not just full-time jobs, but part-time jobs, holiday jobs and starter jobs. It will have a huge impact. Has the sector, or have you, modelled where those are likely to fall, when they are likely to come and how they might be mitigated? Ultimately, what can be done to prevent those losses or to help those people move into other businesses across hospitality? Steve Alton: Some of that is already happening.”
“Q My question is very brief, and is relevant to what Mr Lenon said about margins being tight. Is there a figure for the average margin that one of your schools would expect? How might that be affected by the changes to the business rate relief? David Woodgate: The benchmark is 10% net surplus on gross fees. We had many schools drop down to 5% to break even, and they are now going into deficit in order to meet the quadruple whammy—if I can put it that way.”
“Jim McMahon: I think, within the scope of the Bill, which is very narrow, the impact is only a positive one. That is in the context of the temporary relief that was provided during the covid pandemic, which, being temporary, was coming to an end—the cliff edge was coming. There was absolutely no finance provided for it beyond the current year, so the question then is: what do Government do about it? We either grow even further the £22 billion funding gap that was here when we came into office—that is, we continue it—or we say that—”
“Q Going back to panel 7, we heard UKHospitality, the British Institute of Innkeeping and the night time economy adviser for Greater Manchester reflect on jobs and job losses due to changes. I appreciate that it is hard to establish at this stage whether those are because of national insurance or business rates, but either way business rates are a contributing factor. What analysis have the Government done as a background to the Bill to model the impact on jobs and job losses in the different sectors? What impact assessment has been done in relation to the different types of employment—full time, part time or seasonal? A lot of hospitality work helps people such as part-time working mothers because it comes at different times of day.”
“Ten minutes ago, you said that we have to look at those changes within the scope of all the other changes, so I think it is not unreasonable to look at it as a whole. Jim McMahon: As in, the interventions that the Government are taking?”
“Yes. Jim McMahon: In the scope of the Bill, this is the much-needed relief that retail, hospitality and leisure need. Every one of the witnesses who came to talk about the impact of it, within the scope of the Bill, were—”
“Q Was a job analysis done in the scope of the Bill? Jim McMahon: Those witnesses were very positive about its impact. Lots of other changes will be coming through the system. We still have to do the revaluation. We still have, through the next fiscal programme, to talk about the rates. That type of analysis will be done at a later stage. To be clear, although there was a lot of context about the operating environment being challenging—there is only so much you can do within months of coming into office—on the small business rate issue and on retail, hospitality and leisure, every witness said that the Bill will play a part in supporting local businesses to be more sustainable in the future. The other issues are well outside of the scope of the Bill.”