{"id":4492,"date":"2024-11-23T19:17:35","date_gmt":"2024-11-23T19:17:35","guid":{"rendered":"https:\/\/thewitnessexet.wpengine.com\/?p=4492"},"modified":"2024-11-23T19:17:36","modified_gmt":"2024-11-23T19:17:36","slug":"this-week-in-pmqs-government-grilled-on-inflation-banking-hubs-farmers-and-arms-dealing","status":"publish","type":"post","link":"https:\/\/thewitnessexeter.co.uk\/?p=4492","title":{"rendered":"This week in PMQs: Government grilled on inflation, banking hubs, farmers and arms dealing."},"content":{"rendered":"
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\n \t<\/i> Read Time:<\/span>4 Minute, 40 Second <\/div>\n\n <\/div>\n

INFLATION:<\/p>\n\n\n\n

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<\/a>: \u201cWhat are the Government doing to bring down inflation?\u201d<\/p>\n\n\n\n

In a fiery exchange<\/a>, Rayner attacked Burghart\u2019s reputation under the Truss government.\u00a0<\/p>\n\n\n\n

According to official figures from the Bank of England, the current inflation rate is 2.3%<\/a> as of October 2024. The target rate is 2%.\u00a0<\/p>\n\n\n\n

The Office of Budget Responsibility said that they expected inflation to rise after the Labour Budget, announced on the 30th<\/sup>\u00a0of October 2024.\u00a0\u00a0They found that in the short term there will be limited inflation but that it will come down to the 2%<\/a> while still growing the economy.\u00a0<\/p>\n\n\n\n

Moreover, the National Institute for Economic and Social Research<\/a> agrees, believing that inflation is expected to rise.\u00a0<\/p>\n\n\n\n

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%<\/a> this time last year.\u00a0<\/p>\n\n\n\n

Rayner is also right to point out that it is nowhere near the height of Tory inflation at 11.1% <\/a>but this a low bar to compare one\u2019s government to.\u00a0<\/p>\n\n\n\n

BANKING HUBS: <\/p>\n\n\n\n

The Conservatives questioned the government on access to banking hubs. The Deputy PM assured<\/a> the house that:\u00a0\u201cWe have committed to 350 banking hubs through this Parliament.\u201d\u00a0<\/p>\n\n\n\n

Banking hubs operated through the Post Office<\/a> offer customers access to essential banking services, regardless of the bank they use. <\/p>\n\n\n\n

Labours pledged to bring banking back into the high street <\/a>to foster \u201cface-to-face banking<\/a>.\u201d\u00a0<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

GB News <\/a>have been critical, suggesting fears of inconsistent services from the banking hubs.\u00a0<\/p>\n\n\n\n

The BBC<\/a> however, when interviewing customers saw widespread satisfaction with the banking hubs.\u00a0<\/p>\n\n\n\n

 FARMING:<\/p>\n\n\n\n

The government faced fierce resistance from the Conservative, Liberal Democrat, and Reform parties over a change to inheritance tax for farmers<\/a>.<\/p>\n\n\n\n

On the 19th<\/sup>\u00a0of November<\/a>, more than 10,000 farmers gathered in Whitehall to protest the government\u2019s plans.<\/p>\n\n\n\n

Previously, Agricultural property relief (APR)<\/a> exempted farmers from inheritance tax on their farmland, allowing farmers to pass on farmland to the next generation more easily.\u00a0<\/p>\n\n\n\n

Labour\u2019s main goal is to tax large farms, suggesting that some are using farm ownership as an inheritance tax loophole. Government figures show that 20%<\/a> of Agricultural property relief (APR) is claimed by the top 2% and 40% of APR by the top 7%.\u00a0The Minister for Food Security and Rural Affairs believes<\/a> that this is not fair and wants to reform the system.\u00a0<\/p>\n\n\n\n

The changes outlined<\/a> are: \u201c100% relief for the first \u00a31 million and 50% relief thereafter\u2014an effective 20% tax rate. That means that an individual can pass up to \u00a32 million, and a couple up to \u00a33 million between them, to a direct descendant, inheritance tax-free\u201d.\u00a0Labour believes that 73%<\/a> of APR claims are less than \u00a31 million so it thinks most farmers won\u2019t be affected. <\/p>\n\n\n\n

Government believes only 500<\/a> farms will be taxed per year.\u00a0<\/p>\n\n\n\n

Meanwhile, the National Farmers Union <\/a>claims the new tax will discourage people from buying farmland and renting it to other farmers.\u00a0This may mean that less farmland will be used for farming. It also claims the figures are a miscalculation<\/a> as they do not consider diversified farms or, as raised by The Country Land and Business Association (CLA)<\/a>, the fact that most farmers are asset rich but cash poor.<\/p>\n\n\n\n

So why are the figures so different? <\/p>\n\n\n\n

BBC News<\/a> and Channel 4<\/a> 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.<\/p>\n\n\n\n

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.\u00a0<\/p>\n\n\n\n

GAZA: <\/p>\n\n\n\n

The Member for Middlesbrough and Thornaby East (Labour) asked a question on the government\u2019s response to Israel carrying out \u201cmass forced displacement<\/a>.\u201d\u00a0<\/p>\n\n\n\n

Rayner remarked<\/a> that \u201cWe 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.\u201d<\/p>\n\n\n\n

The Foreign Office announced <\/a>that it has suspended licences for 30 out of 350 arms licences because of Israel’s lack of cooperation with international law.\u00a0<\/p>\n\n\n\n

This presents a dramatic shift in Labour\u2019s stance towards Israel and the Middle East. A week before the Prime Minister asserted<\/a> that \u201cI have never described this or referred to it as genocide.\u201d <\/p>\n\n\n\n

On the 21st<\/sup>\u00a0of November<\/a>, 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 \u201cthe war crime of starvation as a method of warfare; and the crimes against humanity of murder, persecution, and other inhumane acts.\u201d\u00a0<\/strong><\/p>\n\n\n\n

Sir Keir Starmer has confirmed<\/a> his backing for the court\u2019s decision, presenting a significant shift in position for the Labour party.\u00a0<\/p>\n\n\n\n

Image<\/a>: Angela Rayner MP, Deputy Prime Minister (Ashton-under-Lyne, Labour), House of Commons, 2024 \/\/ CC BY-NC-ND 2.0<\/a><\/p>\n\n\n\n

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