Agenda item

In accordance with the Constitution, motions on notice must be signed by at least two Members and be about matters for which the Council has a responsibility or which affect the Melton Borough.

 

Three motions were received by the deadline.

 

Inheritance tax changes for family-run farms

 

The following motion was received from Councillor Allnatt (Seconded by Councillor Adcock).

 

Council notes the letter sent by the Leader to the Chancellor of the Exchequer and others concerning the announcements in the recent Budget concerning inheritance tax as it affects “family run” farms.

 

Council therefore urges the Government to implement fiscal changes in a more nuanced and selective way and to avoid unintended consequences for those who the Prime Minister described as the “backbone” of a nation that seeks to produce more food sustainably within the UK.

 

Impact of inheritance tax changes upon family farms

 

The following motion was received from Councillor S. Orson (Seconded by Councillor Sharp).

 

Council notes that:

·       The recent 2024 Autumn Budget change to Inheritance Tax relief announced by the Labour Government will introduce a Family Farm Tax and will have a detrimental impact on Family Farms and farmers’ ability to pass on their farms to the next generation of farmers.

 

Council believes that:

·       The Labour Government have committed a shameful betrayal and let down farmers by breaking their promise to not introduce a Family Farm Tax.

·       The Family Farm Tax will damage the ability of farmers to pass on their farms to their children.

·       Labour’s Family Farm Tax will threaten food security by forcing the sale of family farms.

·       The Labour Government’s Family Farm Tax will make British food production harder.

·       The Secretary of State for the Environment, Food and Rural Affairs, Steve Reed and Keir Starmer promised not to introduce a tax like this.

·       Numerous rural and farming organisations such as the National Farmers Union and Country Land and Business Association have warned that countless farms will be harmed, threatening food security and rural areas.

·       The comments made by Secretary of State for the Environment, Food and Rural Affairs Steve Reed that already struggling farmers will have to ‘do more with less’ show distain for farmers and the sector.

·       At a time when many farmers in the Borough of Melton are struggling with soaring costs and energy prices, this sudden tax rise will damage the future of their farms.

 

Council resolves:

·       To request that the Leader of the Council writes to the Secretary of State for the Environment, Food and Rural Affairs to outline the Council’s dismay at this decision and calls on the Government to stop the Family Farm Tax.

·       That the Portfolio Holder for Town Centre, Growth & Prosperity engages with local farmers and community representatives on what support Council can do to support them.

·       That a list must be published of affected farms.

 

National Insurance Contribution Increases

 

The following motion was received from Councillor Child (Seconded by Councillor Browne).

 

Melton Borough Council notes with concern the recent increase in Employers National Insurance Contributions. This Council recognises the significant role that small businesses play in the local economy of Melton Borough, providing essential services, employment, and contributing to the vibrancy and resilience of our communities.

 

The deeply unpopular Budget proposals put forward by the Labour Government on October 30, which will have catastrophic implications for the Borough of Melton, its residents and businesses. Labour’s broken promise to not raise national insurance.

 

The rise in employer national insurance contributions has been widely condemned by many businesses including GP’s, who argue it could hit services for patients.

 

The Institute of General Practice Management, which represents GP Practice Managers has estimated the rise will put up the tax bill of the average surgery by around £20,000 a year.

 

Care homes across the Borough of Melton are also targeted by this Labour Party Budget and the devastating financial effect of these higher costs will have dire consequences for its residents and staff.

 

The Borough’s charity and voluntary sectors have also been hit hard.

 

The NCVO which represents the UK’s charities and voluntary sector has estimated the additional costs to the sector to be around £1.4 Billion a year and that the decision to not create an exemption will be another major strain on their limited resources at time when they are already struggling.

 

This Council believes that the increase in Employers National Insurance Contributions will disproportionately affect small businesses, placing an undue financial burden on them at a time when many are still recovering from the economic impacts of the high inflation and high interest rates.

 

Therefore, this Council resolves to:

 

1)    Write to the Chancellor of the Exchequer, urging a reversal of the increase in Employers National Insurance Contributions.

2)    Highlight the critical contributions of small businesses, health and voluntary sector to our local economy and the disproportionate impact these increases will have on them.

3)    Advocate for policies that support and sustain the growth and stability of small businesses, health and voluntary sector in our Borough.

 

This Council calls on all members of the Council to support this motion and stand in solidarity with our local small businesses, health and voluntary sector.

The Mayor confirmed that there were three motions on notice received for the meeting.

 

The first motion, as outlined below, was in relation to inheritance tax changes for family-run farms and was received from the Leader, Councillor Allnatt (Seconded by Councillor Adcock).

 

Council notes the letter sent by the Leader to the Chancellor of the Exchequer and others concerning the announcements in the recent Budget concerning inheritance tax as it affects “family run” farms.

 

Council therefore urges the Government to implement fiscal changes in a more nuanced and selective way and to avoid unintended consequences for those who the Prime Minister described as the “backbone” of a nation that seeks to produce more food sustainably within the UK.

 

Councillor Child proposed the following amendment (Seconded by Councillor Chubb).

 

Council notes the letter sent by the Leader to the Chancellor of the Exchequer and others concerning the announcements in the recent Budget concerning inheritance tax as it affects “family run” farms. 

 

Council therefore urges the Government to implement fiscal changes in a more nuanced and selective way and to avoid unintended consequences for those who the Prime Minister described as the “backbone” of a nation that seeks to produce more food sustainably within the UK.

 

Council resolves:

1)    To request that all Group Leaders of the Council writes jointly to the Secretary of State for the Environment, Food and Rural Affairs to outline the Council’s concern at this decision and calls on the Government to stop the Family Farm Tax.

2)    That the Portfolio Holder for Town Centre, Growth & Prosperity engages with local farmers and community representatives on what support Council can do to support them.

3)    That a list must be published of affected farms in order that support can be given to affected farmers.

 

During the debate on the amendment, the following points were made:

·       The Leader, as the proposer of the original motion, stated that he wouldn’t accept the amendment for the following reasons:

-        Point one was redundant as he had already written a letter to the Chancellor of the Exchequer and therefore another letter won’t make a difference.

-        Regarding point two, the Leader doesn’t think it is necessary but he will engage with the National Farmers Union and through them, the farming community.

-        In relation to point three, the Leader was unsure what the proposal meant in practice and that it could run foul of data protection.

·       It was commented that whilst the amendment raises some good points, point three of the amendment could mean that there is very sensitive information gathered and farmers may not want their details published.

 

Council then voted on the amendment. The vote was as followed.

 

(For 7, Against 13, Abstentions 2)

 

As a result of the vote, the amendment fell.

 

The debate proceeded on the original motion and the following points were raised:

·       A comment was made that the government should have given farmers more notice on what they were planning to do.

·       It was noted that there needs to be a discussion with farmers without the political bickering, as that is not in the farming community’s interests.

·       Since 1984, rich individuals had purchased agricultural land as a means to avoid inheritance tax. Also the price of agricultural land has quadrupled over the same period.

·       Farmers tend to be asset rich and cash poor. The tax is hitting those who can least afford it. Farmers are facing rising costs, but are only receiving set prices for their produce.

·       When the public think about farming they neglect to think about the other services farmers provide, e.g. ditching, verge mowing, snow ploughing. Also, farming is the best way to take CO2 out of the atmosphere.

·       It was disappointing that the farming Members couldn’t take part in the debate.

·       Residents value farmers, however there is a recognition that people need to pay their fair share of tax.

·       It was recognised that small farmers may have to sell their land and that the people who could buy it would only do so as a means to avoid inheritance tax.

 

RESOLVED

 

Council

 

(1)  Noted the letter sent by the Leader to the Chancellor of the Exchequer and others concerning the announcements in the recent Budget concerning inheritance tax as it affects “family run” farms.

 

(2)  Urged the Government to implement fiscal changes in a more nuanced and selective way and to avoid unintended consequences for those who the Prime Minister described as the “backbone” of a nation that seeks to produce more food sustainably within the UK.

 

(For 21, Against 1, Abstentions 0)

 

Pursuant to the Constitution, Chapter 3, Part 1, Procedure Rule 8.2, as the amendment on the first motion had been rejected by Council, then the second motion on the impact of inheritance tax changes upon family farms could not be taken.

 

The third motion, as outlined below, was in relation to the National Insurance Contribution Increases and was received from Councillor Child (Seconded by Councillor Chubb).

 

Melton Borough Council notes with concern the recent increase in Employers National Insurance Contributions. This Council recognises the significant role that small businesses play in the local economy of Melton Borough, providing essential services, employment, and contributing to the vibrancy and resilience of our communities.

 

The deeply unpopular Budget proposals put forward by the Labour Government on October 30, which will have catastrophic implications for the Borough of Melton, its residents and businesses. Labour’s broken promise to not raise national insurance.

 

The rise in employer national insurance contributions has been widely condemned by many businesses including GP’s, who argue it could hit services for patients.

 

The Institute of General Practice Management, which represents GP Practice Managers has estimated the rise will put up the tax bill of the average surgery by around £20,000 a year.

 

Care homes across the Borough of Melton are also targeted by this Labour Party Budget and the devastating financial effect of these higher costs will have dire consequences for its residents and staff.

 

The Borough’s charity and voluntary sectors have also been hit hard.

 

The NCVO which represents the UK’s charities and voluntary sector has estimated the additional costs to the sector to be around £1.4 Billion a year and that the decision to not create an exemption will be another major strain on their limited resources at time when they are already struggling.

 

This Council believes that the increase in Employers National Insurance Contributions will disproportionately affect small businesses, placing an undue financial burden on them at a time when many are still recovering from the economic impacts of the high inflation and high interest rates.

 

Therefore, this Council resolves to:

 

1)    Write to the Chancellor of the Exchequer, urging a reversal of the increase in Employers National Insurance Contributions.

2)    Highlight the critical contributions of small businesses, health and voluntary sector to our local economy and the disproportionate impact these increases will have on them.

3)    Advocate for policies that support and sustain the growth and stability of small businesses, health and voluntary sector in our Borough.

 

This Council calls on all members of the Council to support this motion and stand in solidarity with our local small businesses, health and voluntary sector.

 

During the debate, the following points were raised:

·       A comment was made that National Insurance could be viewed as a worker’s tax and the increase could mostly affect part-time workers as businesses could cut part-time roles so that money could be saved in order to pay for the increase.

·       It was recognised that no one wants to see tax go up more than it should but that tough decisions need to be made, especially if people want services to be provided.

·       The budget gap that needs to be sorted out and the increase would help with this. In addition the total public sector debt is £2.8 trillion, which is 100.4% of GDP.

·       It was disappointing that the government who promised no tax on working people has decided to put a tax on working people.

·       The increase would pay for the improvement of the NHS, which was recognised to be not in good shape due to years of underinvestment.

·       The Leader commented that how could he write for funding for a second surgery if the Council state they don’t want the national insurance increase.

·       A comment was made that perhaps it would have been fairer if there was an increase in income tax instead.

·       The increase could have a detrimental impact on businesses to grow, which could reduce the tax pool.

·       Members were reminded on how to best support the people and businesses of the Borough. The local economy is important to the area and its people.

 

Council then voted on the motion. The vote was as followed.

 

(For 9, Against 12, Abstentions 2)

 

As a result of the vote, the motion fell.

 

Pursuant to the Constitution, Chapter 3, Part 1, Procedure Rule 17.6, Councillor I. Atherton wished that his vote for the motion be recorded.

 

At 7:08pm, prior to the commencement of this item, Councillor Hewson, Councillor J. Orson, Councillor S. Orson and Councillor Sharp left the meeting.

 

At 7:22pm, during the consideration of this item, Councillor Freer entered the meeting.

 

At 7:50pm, the meeting was adjourned.

 

At 7:57pm, during the adjournment, Councillor Butcher and Councillor Gordon left the meeting.

 

At 7:57pm, during the adjournment, Councillor Hewson and Councillor Sharp rejoined the meeting.

 

At 7:58pm, the meeting was reconvened.

 

At 8:29pm, upon the conclusion of this item, Councillor Butcher, Councillor Gordon, Councillor J. Orson and Councillor S. Orson rejoined the meeting.