Asked by: Sorcha Eastwood (Alliance - Lagan Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the proposed changes to Agricultural Property Relief on the economic viability of small and medium-sized farm, including farms of around 110 acres in size in Northern Ireland.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government believes its reforms to agricultural property relief and business property relief from 6 April 2026 get the balance right between supporting farms and businesses, fixing the public finances, and funding public services. The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets. Despite a tough fiscal context, the Government will maintain very significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on the relevant assets over 10 annual instalments, interest-free.
As announced at Budget 2025, any unused £1 million allowance for the 100% rate of agricultural property relief and business property relief will be transferable between spouses and civil partners, including if the first death was before 6 April 2026.
There are no changes to the underlying qualifying criteria or definitions for agricultural property relief and business property relief. For example, the longstanding rules mean, in order to qualify for agricultural property relief, the property must normally be agricultural property and occupied for agricultural purposes, such as cultivation to produce food for human and animal consumption. More information can be found at www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm24060.
There is a difference between the total value of a farm and the amount being passed on at death. For example, a farm can be jointly owned by multiple people or family members, meaning each individual’s claim for tax relief can relate to less than the total value of the whole farm. This is explained in more detail in the letter from the then Exchequer to the Treasury to the Northern Ireland Affairs Committee in January 2025. This is available at https://committees.parliament.uk/publications/46267/documents/232537/default/.
Information from claims is not recorded to enable regional or national breakdowns of the number of estates expected to be affected. However, the Government has set out that the reforms are expected to result in up to 375 estates across the UK claiming agricultural property relief, including those also claiming business property relief, paying more inheritance tax in 2026-27. This is a reduction from up to 520 estates forecast to pay more at Autumn Budget 2024. Almost three-quarters of estates claiming agricultural property relief, including those that also claim for business property relief, will not pay any more tax as a result of the changes in 2026-27, based on the latest available data.
A report by the independent Centre for the Analysis of Taxation (CenTax) published in August 2025, prior to the announcement at Budget 2025, concluded that half of the estates paying more would see an increase in their effective inheritance tax rate of less than 5 percentage points, and 86 per cent of these estates could pay their entire inheritance tax bill out of non-farm assets.
An updated tax information and impact note was published alongside Budget 2025 on 26 November 2025. This explains that the measure is not expected to have a material impact on food security or have a significant macroeconomic impact. It is available at www.gov.uk/government/publications/changes-to-agricultural-property-relief-and-business-property-relief/agricultural-property-relief-and-business-property-relief-changes.
Asked by: Gregory Campbell (Democratic Unionist Party - East Londonderry)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the answer of 4 December 2025 to WPQ 95612, whether the (a) new style and (b) old style State Pension payable in 2027 where both categories have a gross income of £13,000 as a result of the old style pension recipient having a small personal pension will be precluded from paying income tax.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
As I set out in my answer to WPQ 95612, the Chancellor has said that over this Parliament those whose only income is the basic or new State Pension without any increments will not have to pay income tax.
The government will set out more details next year.
Asked by: Baroness Smith of Llanfaes (Plaid Cymru - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government how much the Welsh Government received in Barnett consequentials in 2025–26 from the childcare offer in England.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Barnett formula applies to all changes to UK Government department Departmental Expenditure Limits (DEL) funding.
At Spending Reviews, the Barnett consequentials associated with individual programmes cannot be identified because the Barnett formula is applied to the overall change in a departments’ DEL, and not to the individual programmes driving the change in a UK department’s DEL budget. This is the case for the additional funding for childcare in England provided at Spending Review 2025.
The Welsh Government are free to allocate Barnett consequentials as they see fit across their devolved priorities, and they are accountable to the Senedd for these decisions.
Asked by: Lord Weir of Ballyholme (Democratic Unionist Party - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether the additional £370 million allocated to Northern Ireland is an annual uplift in the block grant or a cumulative figure spread over a number of financial years.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
As a result of decisions at Budget 2025, the Northern Ireland Executive will receive an additional £240 million RDEL excluding depreciation and £130 million CDEL over the Spending Review 2025 period (2025-26 to 2029-30) through the operation of the Barnett formula.
Asked by: Lord Weir of Ballyholme (Democratic Unionist Party - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether there are any measures in the Budget 2025 specifically designed to support families in small family farms.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government has taken significant steps to support farmers. The Government allocated a record £11.8 billion to sustainable farming and food production over this Parliament at the Spending Review 2025.
The Government also announced at the Budget in November 2025 that any unused £1 million allowance for the 100% rate of agricultural property relief and business property relief will be transferable between spouses and civil partners. This means a surviving spouse or civil partner can benefit from an allowance of up to £2 million for combined agricultural and business assets depending on their circumstances. It also reduces the complexity and planning for spouses and civil partners seeking to make best use of the allowance between them.
Asked by: Lord Wigley (Plaid Cymru - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government how much money they estimate will be allocated to (1) Wales, (2) Scotland, and (3) Northern Ireland, as part of the Budget 2025.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
As a result of decisions at Autumn Budget 2025, through the operation of the Barnett formula:
(1) The Welsh Government will receive an additional £320 million RDELex and £185 million CDEL.
(2) The Scottish Government will receive an additional £510 million RDELex and £310 million CDEL.
(3) The Northern Ireland Executive will receive an additional £240 million RDELex and £130 million CDEL.
Asked by: Lord Pickles (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, further to the Written Answer by Lord Livermore on 14 May (HL7072), whether (1) garden sheds, (2) conservatories, (3) fish ponds, and (4) garden gnomes, within the curtilage of a domestic dwelling, are deemed to be a material consideration by the Valuation Office Agency when a property is valued for council tax in (1) England, and (2) Wales, including when valuing homes under the high value council tax surcharge.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Valuation Office Agency (VOA) are developing their approach to the targeted revaluation and will set out more details in due course, following the outcome of the Government's consultation.
In general, when valuing domestic properties, the VOA uses modern technology and industry standard techniques combined with freely available information including sales data, property attribute details and government records.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the Organisation for Economic Co-operation and Development Economic Outlook for the United Kingdom, published on 2 December.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Organisation for Economic Co-operation and Development (OECD) is an independent international organisation. The OECD’s forecast following the Budget has upgraded UK growth and reduced inflation for 2026. This follows stronger than expected growth this year, though there is much more to do.
The Budget is boosting economic growth and delivers on the country’s priorities of cutting the cost of living, reducing NHS waiting lists, and driving down our borrowing and debt.
Asked by: Lord Pickles (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether the high value council tax surcharge valuations by the Valuation Office Agency will include (1) drive-by site visits, or (2) site visits within the curtilage of the dwelling, by valuation staff.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Valuation Office Agency (VOA) are currently developing their approach to the targeted revaluation and will set out more details in due course, following the outcome of the Government's consultation.
In general, when valuing domestic properties, the VOA uses modern technology and industry standard techniques combined with freely available information including sales data, property attribute details and government records.
Asked by: Sarah Olney (Liberal Democrat - Richmond Park)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether it is her policy to use the business rates system to help support high street businesses in the context of their competition with online retailers.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto.
The Government is doing this by introducing permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties, while ensuring that warehouses used by online giants will pay more. These new tax rates are worth nearly £900 million per year and will benefit over 750,000 properties.
Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.
The Government is paying for lower tax rates for RHL through higher rates on the top one per cent of most expensive properties. Large distribution warehouses, such as those used by online giants, will pay around £100m more in 2026/27, with this going directly to lower bills for in-person retail.