Agricultural and Business Property Reliefs: OBR Costing

Baroness Penn Excerpts

Monday 27th January 2025 Lords Chamber

[Lord Livermore (Lab)]

I absolutely agree with everything that the noble Lord said. Last week’s publication from the OBR does not contain any new information about its view on the fiscal impact of this policy; it remains the same as it set out in its Economic and Fiscal Outlook for the 2024 Budget. The noble Lord’s question relates to that of the noble Baroness, Lady McIntosh of Pickering. The OBR described this as “highly uncertain” because such a wide range of tax planning options are available to respond to this policy change, including being able to pass on up to £3 million tax-free. The noble Lord was also correct to say that the current system, particularly the extent to which it drives up land prices, has locked out young farmers from being able to own property—and them being able to do so is undoubtedly a good thing.

[Baroness Penn (Con)]

My Lords, the costings we have seen for this policy tend to put APR and BPR together. Can the Minister provide figures for the effects of each separately?

[Lord Livermore (Lab)]

They have been costed jointly at £0.5 billion, as the noble Baroness, Lady McIntosh of Pickering, said.