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INFLATION:
Deputy Prime Minister Angela Rayner, standing in for Sir Keir Starmer on his way back from Brazil, faced questions from the Tory benches over inflation. Alex Burghart the Shadow Chancellor for The Duchy of Lancaster asked: “What are the Government doing to bring down inflation?”
In a fiery exchange, Rayner attacked Burghart’s reputation under the Truss government.
According to official figures from the Bank of England, the current inflation rate is 2.3% as of October 2024. The target rate is 2%.
The Office of Budget Responsibility said that they expected inflation to rise after the Labour Budget, announced on the 30th of October 2024. They found that in the short term there will be limited inflation but that it will come down to the 2% while still growing the economy.
Moreover, the National Institute for Economic and Social Research agrees, believing that inflation is expected to rise.
The Opposition are right to highlight that there is currently higher inflation than desired. The Bank Rate is also higher than average, but it too is still on its way down from being at 5.25% this time last year.
Rayner is also right to point out that it is nowhere near the height of Tory inflation at 11.1% but this a low bar to compare one’s government to.
BANKING HUBS:
The Conservatives questioned the government on access to banking hubs. The Deputy PM assured the house that: “We have committed to 350 banking hubs through this Parliament.”
Banking hubs operated through the Post Office offer customers access to essential banking services, regardless of the bank they use.
Labours pledged to bring banking back into the high street to foster “face-to-face banking.”
New services could allow those who live in areas without major banks, or do not have access to online banking, the ability to access their money. It undoubtedly provides much needed community support to areas which may feel forgotten.
GB News have been critical, suggesting fears of inconsistent services from the banking hubs.
The BBC however, when interviewing customers saw widespread satisfaction with the banking hubs.
FARMING:
The government faced fierce resistance from the Conservative, Liberal Democrat, and Reform parties over a change to inheritance tax for farmers.
On the 19th of November, more than 10,000 farmers gathered in Whitehall to protest the government’s plans.
Previously, Agricultural property relief (APR) exempted farmers from inheritance tax on their farmland, allowing farmers to pass on farmland to the next generation more easily.
Labour’s main goal is to tax large farms, suggesting that some are using farm ownership as an inheritance tax loophole. Government figures show that 20% of Agricultural property relief (APR) is claimed by the top 2% and 40% of APR by the top 7%. The Minister for Food Security and Rural Affairs believes that this is not fair and wants to reform the system.
The changes outlined are: “100% relief for the first £1 million and 50% relief thereafter—an effective 20% tax rate. That means that an individual can pass up to £2 million, and a couple up to £3 million between them, to a direct descendant, inheritance tax-free”. Labour believes that 73% of APR claims are less than £1 million so it thinks most farmers won’t be affected.
Government believes only 500 farms will be taxed per year.
Meanwhile, the National Farmers Union claims the new tax will discourage people from buying farmland and renting it to other farmers. This may mean that less farmland will be used for farming. It also claims the figures are a miscalculation as they do not consider diversified farms or, as raised by The Country Land and Business Association (CLA), the fact that most farmers are asset rich but cash poor.
So why are the figures so different?
BBC News and Channel 4 both agree with the government assessments that only a quarter of farmers each year will be impacted (500 per year) rather that the 70,000 that the Country Land and Business Association has claimed.
That being said we cannot know how many farmers will be impacted by the new tax. And, whether those affected will be large-scale productions or family run multi-generational businesses.
GAZA:
The Member for Middlesbrough and Thornaby East (Labour) asked a question on the government’s response to Israel carrying out “mass forced displacement.”
Rayner remarked that “We have imposed sanctions in response to appalling incidents of settler violence and have suspended export licences for arms, following a review that found a clear risk that they may be used to commit or facilitate violations of international law.”
The Foreign Office announced that it has suspended licences for 30 out of 350 arms licences because of Israel’s lack of cooperation with international law.
This presents a dramatic shift in Labour’s stance towards Israel and the Middle East. A week before the Prime Minister asserted that “I have never described this or referred to it as genocide.”
On the 21st of November, Benjamin Netanyahu and the former Minister of Defence Yoav Gallant have both been charged with war crimes by the International Criminal Court. Both men were charged for “the war crime of starvation as a method of warfare; and the crimes against humanity of murder, persecution, and other inhumane acts.”
Sir Keir Starmer has confirmed his backing for the court’s decision, presenting a significant shift in position for the Labour party.
Image: Angela Rayner MP, Deputy Prime Minister (Ashton-under-Lyne, Labour), House of Commons, 2024 // CC BY-NC-ND 2.0
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