Ben Lake

I am pleased to speak in this debate on the Finance (No. 2) Bill. I have now spoken in most of the Finance Bill debates since I was first elected to represent the people of Ceredigion in 2017, and subsequently, since last year, I now also represent the good people of Preseli, in north Pembrokeshire. In advance of all Finance Bill debates I make the effort to consult widely with my communities, in particular with the small businesses that form such an important part of the economy in my constituency. In all the years that I have served as a Member of Parliament, never has the sense of fear, the lack of confidence and the uncertainty been so palpable when I have met businesses in my constituency. If I reflect briefly on the structure of the economy of the constituency, it is perhaps no surprise that they should be so worried about the measures in this Budget. As of March this year, there were some 5,500 businesses registered in Ceredigion Preseli—that number may well be slightly lower by next March—and 81% of them are classified as small businesses, with fewer than 50 employees, which makes Ceredigion Preseli the small business capital of Wales. It is a rural and coastal constituency, so the industries of agriculture and hospitality are key pillars of our economy. Indeed, 35% of all businesses are classified as being in the agricultural, forestry or fishing sector. Much has already been said in the debate about the changes to the agricultural property relief and the business property relief, and the concerns that these changes have caused for small businesses and small family farms across the United Kingdom. We have heard other Members, particularly the right hon. Member for Orkney and Shetland (Mr Carmichael), eloquently speak on this matter. As he mentioned, we have already seen how these proposals have changed the way in which our small businesses, particularly farm businesses, operate. Some 55% of small businesses and 49% of farm businesses have already cancelled proposed investment projects in anticipation of the changes. Family Business UK estimates that in my constituency these changes alone will lead to the loss of some 250 jobs and deliver a £13 million hit to my constituency’s gross value added. There is a real danger with these changes that the Government will deliver incredibly long-lasting harm to small businesses across the country, especially in rural areas. It is particularly disappointing that the Government have refused to pause, at least, these changes so that they can properly understand the impact that they will have on rural areas. Many figures and statistics have been bandied about in the many debates that we have had in the past months about the prevailing facts of these changes, but the Government have not undertaken a full impact assessment, as follows most policy decisions that they take.