Latest news with #EmploymentBill
Yahoo
3 days ago
- Business
- Yahoo
Starmer's family business death tax won't help keep us safe
To govern is to choose. And this week we have heard ad nausem from Sir Keir Starmer about the tough choices he claims he is having to make to fund our islands' defence. Or rather presumably would have to make in order to get to a firm 3 per cent of GDP in this Parliament rather than the equivocal 3 per cent at the end of the next one he will not even commit to. But amidst the menu of choices, like the Chagos surrender costing our forces £100 million a year, there's one very easy choice that would pay back on many levels. To reverse his family business (and family farm) death tax. This prejudiced decision may turn out, according to new analysis, to cost more money than it raises, punishes aspiration and risks wiping out centuries-old businesses in a single parliamentary term. New independent research published by CBI economics confirmed in another example of Rachel Reeves's dodgy accountancy that this one tax will put 200,000 jobs at risk and lower the size of the wider economy by £15 billion. The Prime Minister must not go ahead with it. Family businesses represent years of work, skills and investments made, passed down carefully through generations. They currently receive relief on inheritance tax when passing it down to the next custodians. This is a feature introduced by a previous Labour government to ensure the success of a constituent part of the economy providing 14 million jobs in the UK. But this is an anti-business government, driven by what works in socialist screeds rather than the shop floor. So, it's no wonder Starmer and his ministers are intent on attacking them. The Cabinet don't have any real business experience between them – the Business Secretary [Jonathan Reynolds] embarrassingly lied on his CV even about being a qualified lawyer – and it shows. Labour came into the general election promising not to tax working people, but that is exactly what they are doing. This is a small business death tax, which will be paid for in the jobs of working people. While some businesses' assets may be valuable on paper, they don't equate to hard cash. There are plenty of family businesses for whom being forced to sell assets (like machinery) on the factory floor will mean emptying the factory floor. They're asset rich but cash poor – and they'll be forced to shut up shop. This is the latest in a long line of decisions aimed squarely at punishing wealth creators and risk takers by a government that at the most charitable interpretation doesn't know about business interests, nor foresee the outcome of their assaults on business. All the more reason to listen when independent forecasters say your numbers are wrong. More shockingly, what started as a pre-election prawn cocktail offensive aimed at charming business has become an all-out war on private enterprise. Because this is only the start. The Employment Bill, which will do the exact opposite of what it says on the tin, is costing businesses £5 billion and allows trade unions to reconquer private businesses. Many of those who won't be able to cope with its hundreds of pages more regulations will be the same small, family businesses already suffering under the burden of the death tax. As part of my role as shadow business secretary, I have been going around the country engaging with businesses from the biggest automotive firms to village shops. All seriously worried about what this government will do next. It is no wonder that there has been an exodus of wealth creators since Starmer has taken office. Last year, over 10,000 millionaires fled Labour's socialist attacks on businesses and wealth creators. The tax bills they took with them are the equivalent of losing 300,000 average taxpayers. These are ambitious, courageous people, many of them entrepreneurs who have choices – and they're not choosing Labour's Britain. These people create jobs, drive growth, and pay for our public services. We will all be worse off without them. But still, Reeves dogmatically ploughs on, not paying attention to the warning lights on the dashboard flashing red or the millionaires leaving every 45 minutes. It is a stark reminder of what socialists are capable of when they get their hands of the levers of power. The Conservatives understand family businesses and wealth creators because so many of us have worked in the private sector. While other parties fight over who can spend the fastest more taxpayers' money we cannot afford, we continue to advocate for government that spends only within its means and balances its books without fiddling the rules. That means making the genuinely tough choices that will prioritise defence over ballooning welfare costs. We know that those who start businesses are taking a risk. We need to create a society where people aren't afraid to fail and are rewarded for those risks when they pay off. At the very least, those who start family businesses should know that they are able to pass their business down to the next generation. Unless the Prime Minister sees sense soon, Britain's legion of quietly successful family business will be consigned to the dustbin of history and our future with them. Andrew Griffith is the Conservative shadow business and trade secretary Broaden your horizons with award-winning British journalism. 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Daily Mirror
25-05-2025
- Business
- Daily Mirror
Deputy PM Angela Rayner rules out running for Labour leader - 'never'
Deputy PM Angela Rayner says it's the 'honour of my life' to be in her current role and delivering on housing and workers' rights is 'everything I could dream of' Angela Rayner has ruled out running to be leader of the Labour Party as she hit back at speculation over her future. The Deputy PM said it was the "honour of my life" to be in her current role and delivering on housing and workers' rights was "everything I could dream of". Told there were people in the party who believed she had an "eye on the top job" one day, she told BBC: "I do not want to run for leader of the Labour Party." Asked to rule it out, she replied: "I rule it out. I'm absolutely focused on working with the PM and the Cabinet. "This is the honour of my life. To do the job I'm doing, to represent my constituents in Ashton-under-Lyne and to finally have an opportunity to build the council houses we need, to put money in working people's pockets, and to support what we're doing through our Employment Bill, that's everything I could dream of." She also told Sky News: "I don't want to be leader of the Labour Party - I'm very happy and honoured to be Deputy Prime Minister of this country. I've got a lot in my in-tray to prove I can do the job I'm doing and deliver on the milestones for the people of this country. I have no desire to go for the leadership of the Labour Party." Asked to say the word never, she replied: "Never." The Deputy PM was asked by Sky News to dispel suggestions she may have been behind the leak of a memo to the Chancellor, in order to grow support for a future leadership bid. In response, Ms Rayner denied leaking the document, which reportedly proposed to Rachel Reeves a host of taxes on wealthier people ahead of the Spring Statement in March. She added a leak inquiry was now underway. According to the Telegraph, it was suggested by Ms Rayner's department the Treasury should increase tax rates paid on dividends and reinstate the pensions lifetime allowance. The allowance limited how much savers could put in their pension pot before incurring a higher tax charge and was abolished under the Tories. Closing the commercial property stamp duty loophole and a higher corporation tax rate for banks was also proposed. The memo titled "alternative proposals for raising revenue" estimated eight changes could raise £3billion to £4billion a year. The proposals were not adopted by the Chancellor. Ms Rayner said: "I think there's one [leak inquiry] under way, and quite rightly so, because leaks are very damaging. It's really damaging, because we have lots of sensitive conversations in the round, all of us, and then we make a collective decision." The Deputy PM would not be drawn into saying whether she wanted to see taxes raised, as the memo suggested was needed. She told Sky News: "As a matter of principle, I will continue to have those conversations with our Government on how we can bring down the cost of living for working people, support children out of poverty, build the houses we said we're going to do and protect our borders and security."
Scotsman
15-05-2025
- Politics
- Scotsman
Gregor Poynton MP secures clarity on welfare reforms that will support Livingston constituents
Watch more of our videos on and on Freeview 262 or Freely 565 Visit Shots! now Gregor Poynton, Member of Parliament for the Livingston constituency, has secured important clarification from the Secretary of State for Work and Pensions regarding the government's proposed welfare reforms, following concerns raised by local constituents. Sign up to our daily newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to Edinburgh News, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... During parliamentary questions, Mr. Poynton asked Secretary of State Liz Kendall to provide reassurance that reforms would genuinely help people into decent, secure work while protecting those who cannot work due to ill health or disability. The Secretary of State confirmed that the government's Employment Bill will focus on improving job quality, providing greater security, and creating more flexible working arrangements to benefit sick and disabled people. She highlighted a £1 billion investment in employment support aimed at ensuring disabled people have the opportunities they deserv Advertisement Hide Ad Advertisement Hide Ad Speaking after the exchange, Mr. Poynton said: "Many Livingston residents have contacted me with concerns about the proposed welfare changes. I'm reassured by the Secretary of State's commitment that these reforms will create a fairer system that supports people into quality employment while protecting our most vulnerable citizens." Gregor Poynton MP speaking in the House of Common "The government is taking decisive action to fix a broken social security system inherited from the previous administration. Under the Conservatives, one in eight young people were left not in employment, education, or training. This government is committed to unlocking growth and putting social security spending on a sustainable footing as part of our Plan for Change." "For too long, the previous government wrote off millions of people, trapping them in inactivity and then blaming them for rising benefits costs rather than providing the support they needed. This approach denied people the benefits of good work, prevented businesses from accessing talent, and stunted economic growth." "These reforms are about building a system that is both fair and financially sustainable," Mr. Poynton continued. "Most importantly, they will ensure that those who genuinely cannot work receive the support they need to live with dignity and independence, while those who can work are given the right opportunities and expectations."
Belfast Telegraph
29-04-2025
- Business
- Belfast Telegraph
Law reforms set to shake up NI employment as business gives mixed reaction
The Employment Bill will bring dramatic changes to workplaces in Northern Ireland which some businesspeople say they have serious reservations about Business in Northern Ireland has said it wants to continue to be heard as Economy Minister Caoimhe Archibald announced major changes to how workplaces operate in the Employment Bill. The legislation aims include ending 'exploitative' zero hours contracts, modernising the trade union framework and making it easier to attain flexible working.
Yahoo
27-03-2025
- Business
- Yahoo
If we don't change course, this country is doomed
What to say about Wednesday's Spring Statement? The truth is that it barely matters. The Government has achieved its primary aim, which is to match one very large predicted number, ie, that of taxation, with another, spending, in 2030. It's all guesswork. No one really believes in the welfare savings, the growth figures, or much else. But the numbers add up somehow. One side gives it ritual support, the other ritual opposition. And the world moves on. The event is meaningless, not because things are going well, but because they are going very badly indeed. If they are honest with themselves, Starmer and Reeves will be staring in alarm at what their stewardship has done so far to the British economy. They remind me of nothing so much as two incompetent magicians – the Incredible Starmo and his glamorous assistant Rachel – who have been doing the Smashed Watch Trick, fail to switch the Rolex in time, and now realise that under the cloth they've got a jumble of broken parts and one very angry audience member. Now they stare at each other in horror and wonder 'What are we going to do?' The Spring Statement has bought them some time. But it hasn't solved their problem. Unfortunately, they are playing with their hammer not on an expensive timepiece but on the British economy. And they clearly don't know what to do now. They are boxed in. Their philosophy and their party tell them that state action will get the economy going again. Yet virtually everything they have done achieves the opposite. And there is more to come: the Employment Bill killing jobs and enterprise, the Renters' Reform Bill wrecking the property market further, the net zero target destroying industry, the plethora of regulators, and the huge increase in tax, spending and borrowing to pay for it all – a jump of over 2 per cent of GDP in just two years. If we were going to spend all that money, couldn't we at least have put it into doubling defence spending rather than paying off trade union shakedowns? Starmer and Reeves are now at the mercy of events. They might get lucky and be saved by some miraculous AI-fuelled change of circumstances. Much more likely is that events will turn against them. Productivity won't go up as the OBR says it will. Tariffs will slow the global economy. Defence spending will need to increase further. And their own policy measures will make everything worse. So this week's tinkering to meet the fiscal rules in five years' time means nothing. Almost certainly the crisis will be on them sooner than that. As Dr Dan Mitchell, prominent US economist and commentator put it this week: 'I've been assuming that Italy will be the next country to suffer an economic and fiscal crisis, but the UK is heading in the wrong direction so rapidly that I may need to change my prediction.' So much is obvious to any intelligent observer not blinded by the stream of meaningless drivel emitted by government figures in the past 24 hours. But seeing that is the easy bit. After all, Reeves is not entirely wrong in blaming her predecessors. It's just that she hasn't done anything different herself. The last Conservative government pushed up spending and raised taxes. It was just as committed to net zero. It had its own Rental Reform Bill. Indeed at least Reeves is doing some planning reform; the Tories dumped Robert Jenrick's planning reforms after one bad by-election. The truth is there hasn't been any real attempt to get to grips with Britain's underlying problems for 30 years or so. Tony Blair and Gordon Brown benefited from the reforms of Lady Thatcher and John Major. They used this beautiful inheritance to make things worse: to push up taxes and spending, to begin the energy policy madness, to start importing large numbers of people, and to launch the process of collectivisation and over-regulation. None of this was durably reversed under the Tories and Lib Dems. Most of the problems got worse. That's why productivity growth is now not far off zero and why GDP per head is actually falling. Someone now needs to offer a proper, serious alternative. Either the Tories or Reform or both need to start explaining the problems and setting out what they would do instead. Otherwise voters will start thinking that no one can fix the country's difficulties. They aren't far off that now. Then they really will start giving up on mainstream politics. What needs to be done is obvious. As I keep saying, we need a plan, over a decade or more, to reverse the power of the state and bring back economic and political freedom. If we want growth back, tax, spend, and regulation need to come back down to early Blair government levels. Yes, that will be painful. But continuing on the current track will be even more so. The first thing to do when you're on the wrong path is to turn round. Meanwhile, we must all put up with the Incredible Starmo and Reeves Show. Roll up, roll up, and watch their next trick: the Amazing Disappearing British Economy. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
