😡 Family Businesses

• The debate focused on the impact of the government’s policies on family businesses, criticizing the cap on Business Property Relief (BPR) and the changes to Agricultural Property Relief (APR), which could lead to family businesses facing inheritance tax for the first time in decades.

• The opposition argued that these policies, along with increases in employers’ National Insurance contributions, reductions in business rates relief, and regulations in the Employment Rights Bill, are detrimental to family businesses that employ nearly 14 million people and contribute significantly to the economy.

• The government defended its decisions, stating that the cap on BPR and changes to APR are necessary to raise revenue in light of public finance pressures, while still maintaining significant reliefs for small businesses and farms.

• The government emphasized its commitment to economic growth, highlighting measures such as extending business rates relief, doubling the employment allowance, and providing support for small businesses and high streets to thrive.

• Concerns were raised about the impact of the government’s policies on employment, with fears that businesses might cut jobs or investment due to increased financial burdens, particularly in sectors like hospitality and retail.

• The opposition criticized the government for not offering a credible alternative plan to support family businesses, accusing them of prioritizing spending and regulation over the needs of businesses.

• Various MPs shared examples of how local family businesses in their constituencies are struggling with these new policies, urging the government to reconsider its approach to support the backbone of local economies.

• The debate also touched on broader issues affecting family businesses, such as crime and antisocial behavior, infrastructure, and the need for better public services to support business growth.

• Despite the opposition’s motion, which sought to reverse several of these policies, it was rejected by a vote, with the government arguing it is focused on economic stability and growth through its current measures.

The session exhibits a high level of disagreement, characterized by strong oppositions between the government and the opposition, as well as among various parties. The debate revolves around the impact of the government’s policies on family businesses, which is a contentious issue. The disagreements are multifaceted and include concerns about inheritance tax, national insurance contributions, business rates, and employment regulations.

Examples of disagreements include:

1. Inheritance Tax and Business Property Relief (BPR):
   • The Conservative party opposes the changes to BPR, arguing that it will lead to the break-up of family businesses due to an increased inheritance tax burden. They contend that these changes will force businesses to invest less and potentially sell off their assets, negatively impacting the economy. For instance, Mel Stride criticized the government’s decision to cap BPR, claiming it would harm family businesses passed down upon death.
   • The government, represented by James Murray, defends the changes, arguing they are necessary for fiscal stability and that the majority of estates will remain unaffected. Murray emphasizes that the reliefs were maintained rather than abolished and that the changes target a small number of the wealthiest estates, which they believe is fair and sustainable.
2. National Insurance Contributions:
   • Opposition members, particularly from the Conservative and Liberal Democrat parties, argue that the increase in employer national insurance contributions is detrimental to family businesses, especially those in hospitality and retail. They believe it discourages hiring and contributes to higher prices and reduced investment. For example, Joy Morrissey highlighted the impossible choices businesses face due to the increased costs.
   • Labour Members, such as James Murray, justify the increase as essential for restoring fiscal stability and supporting public services. They note that smaller businesses are protected by raising the employment allowance, allowing many to pay less or no national insurance.
3. Employment Rights Bill:
   • Conservative Members express strong opposition to the Employment Rights Bill, suggesting it would harm businesses, particularly smaller ones, by increasing red tape and costs. Andrew Griffith criticizes it as making it harder for businesses to grow and hire.
   • Labour Members defend the Bill, arguing it ends exploitative practices like zero-hours contracts, providing more security for workers. Deirdre Costigan emphasized the Bill’s importance in protecting workers from sexual harassment and ensuring fair working conditions.
4. Business Rates and Economic Growth:
   • The opposition criticizes the reduction in business rates relief as harmful to the high street and family businesses. Bradley Thomas and others argue that these policies will lead to fewer jobs and economic stagnation.
   • The government, through Gareth Thomas, counters that they are taking steps to support high street businesses, including reforming business rates, extending reliefs, and introducing measures to tackle problems like shoplifting and late payments.

The debate is intense, with numerous interventions and counter-arguments from both sides, indicating significant disagreement. The opposition accuses the government of a lack of understanding of business needs and harmful economic policies, while the government defends its actions as necessary for economic recovery and fairness. The depth and breadth of the disagreements in policy impacts justify a rating of 4 out of 5.