Small Farms and Family Businesses

Baroness Shephard of Northwold Excerpts

Thursday 12th December 2024 Lords Chamber

[Baroness Shephard of Northwold (Con)]

My Lords, I congratulate my noble friend on calling this debate and on bringing to it his customary knowledge and experience. It is a pleasure to follow the right reverend Prelate the Bishop of Norwich: that is three speakers from Norfolk already in this debate.

The tax changes for farmers announced in the Budget have sent shockwaves through every rural community in the land. People feel betrayed—we have heard evidence of that—and let down by the Government, and with reason. Why? Because the Labour manifesto promised that it would champion British farmers, because Keir Starmer’s pre-election speech to the NFU promised a constructive relationship with the farming industry and because, as we have heard this afternoon, government departments apparently cannot agree on how many firms will be affected. I believe that the Treasury is claiming that it is only a quarter—but it would, wouldn’t it? Defra, which was not consulted, claim that it will be two-thirds. This is not a good basis for a farm business plan.

All this follows cuts to grants for nature restoration and for the promotion of British food and the pausing of capital grant offers. Every rural community will be affected, and this matters. Our farmers produce 60% of our food. Food security becomes ever more important when the incoming United States President is telling the world that “tariff” is the most beautiful word in the language. It is important because farmers care for 70% of our land. They are the guardians of our countryside and environment. Above all, it is important because the rural economy depends heavily on the prosperity and stability of the farming sector. The Government so far show no sign of understanding this basic fact, although they should after this debate. They should, at least, act on the recently revised advice from the IFS and tweak their plans.

I have comments from three businesses based in north-east Norfolk. Nicholsons, a farm machinery business established in 1937, faces a huge annual rise in wage costs from national insurance increases. It says that uncertainty over the the future of family farms will reduce its income, with the consequence that:

“Investment in people, infrastructure and technology will have to further reduce … firms will fail”


and jobs will be lost. The second comment is from a large animal veterinary practice with 23 staff. Because of the national insurance increases, it has to increase its fees. The director fears that, because of the Budget changes for farmers, the practice and all such practices will lose many of their farm customers, with dire consequences for the whole veterinary profession.

The third comment concerns grain merchants. Mr Dewing writes that, as a result of tax changes for farmers, the farming industry will focus on holding on to cash, reducing capital investment, employee numbers and investment in diversity projects. He adds:

“The Budget is killing employment, investment, UK family businesses, rural economies and structures, confidence in government, and the future of an industry which once ‘dug for victory’”.


The Government must change their mind.

Childcare Payments Bill

Baroness Shephard of Northwold Excerpts

Wednesday 17th December 2014 Lords Chamber

Asked by

[Baroness Shephard of Northwold]

To ask Her Majesty’s Government what specific estimates they have made of the impact of the Childcare Payments Bill on maternal employment rates and the level of income tax paid by working mothers.

[Lord Newby (LD)]

My Lords, the Government expect a positive impact on both participation in employment and hours worked as a result of the Childcare Payments Act, although it is not currently possible to quantify this, given the lack of recent literature evidence for the UK. Further evaluation of the evidence around employment effects can be found in the recently published updated impact assessment available on the parliament.uk website.

[Baroness Shephard of Northwold (Con)]

I thank my noble friend for his typically detailed reply. I wonder whether he is aware that the Select Committee on Affordable Childcare, on which I serve, has been requesting an answer to that question from the Treasury for some months. The committee has been deeply disappointed by his department’s apparent inability—refusal, even—to provide a Minister to give evidence before it, even though the Exchequer Secretary has specific and named responsibility for childcare, women and the economy. Would my noble friend, whose own accountability credentials are impeccable, care to comment on his department’s understanding of parliamentary accountability, it being the season of good will?

[Lord Newby]

Thank you for that. My Lords, it is standard practice that Treasury Ministers appear before only the Treasury Committee and the Lords Economic Affairs Committee when specific Treasury policy leads. I personally regret that, but I failed completely to get my Treasury colleagues to see the error of their ways.