Farming and Rural Communities

Lord Bellingham Excerpts

Thursday 3rd April 2025 Lords Chamber

[Lord Bellingham (Con)]

My Lords, it is a pleasure to follow the noble Lord, Lord Best, who has given us some very interesting ideas about housing. I declare my interests as in the register and congratulate the noble Lord, Lord Roborough, on moving this debate.

We have heard a lot of facts and figures, but in my short contribution, I want to try to get behind the facts and look at some of the human interest in this and some of the real examples. In fact, the noble Lord, Lord Harlech, did the same with his two examples. I was lucky enough to be briefed by my NFU contact, who explained to me exactly what is happening in one particular Norfolk village in the heart of the Norfolk rural community—not my old constituency, and I will not identify it. I want to take your Lordships on a great tour of that village and the farming activities in and around it.

Farm A is a 1,200-acre farm in this village of 400 people which has a thriving school, a church, a pub and a village shop. It is a tenanted farm from a big estate, and it is well run, mainly arable, with some water meadows, two full-time employees and two sons who qualify under the 1948 legislation. The farmer is on the parish council. The wife is involved with the school as a governor and is a PCC.

Farm B is a 600-acre farm that is owned by fourth-generation farmers. They have two daughters. He operates as a contractor to enhance his business. He and his wife are also very involved with the community.

Farm C is an owner-occupied farm of 200 acres which has been in the family for four generations. It is a small farm which has morphed into being more of a hobby farm, as the two brothers involved are also involved in other businesses to make ends meet.

Farm D was bought about 30 years ago by a commercial farming family. It is a very well-run family farm of 1,400 acres, with two full-time employees and three children. The farmer is vice-chairman of the parish council.

My NFU friend and I talked through what might happen under these inheritance tax changes. The farmer at the tenanted farm is really worried. You might think, “He’s not involved, he’s a tenant”, but if the estate involved is hit by 20% IHT, it will have to raise £10 million over 10 years. What will it do? It will probably sell the tenanted farm for solar arrays. As my noble friend Lord Grayling pointed out, in Norfolk a lot of grade 1 agricultural land is going over to solar, which is a disaster. The tenant could be evicted. The house would be sold to a second-home owner. The support for community would be lost.

I have also spoken to the farmer with the 600-acre farm, who is devastated. He has two daughters and no idea what to do. He is over 80. He was going to wait until he died. The farm would then be left and there would be no IHT. What will he do? Will he sell it now? No, probably he will take the hit and the farm will be sold, probably to a large farming company.

Farm C is 200 acres. The Government go on about how this will not affect small farms, yet 200 acres is a tiny farm which will definitely be hit by this. Half the farm will be sold. It will probably be consolidated into a much bigger holding.

Farm D is an interesting case. The farmer is relatively young. He has three children—two sons who do not want to farm and a daughter who might want to farm—and a grandson who wants to go to Cirencester. He does not want to take a decision at the moment about making the farm over because if he does, he will have sibling meltdown. He wants to wait until he dies and then probably make it over to the grandson. If he makes it over now, what will the two sons feel about their inheritance? One is a doctor, the other works in finance.

As the right reverend Prelate the Bishop of Hereford pointed out, we will see a consolidation of holdings and a destruction of local supply chains, as all these farms use local suppliers. We will see communities broken up. Farmers feel very angry. Is it surprising? Just over a year ago, Steve Reed, the shadow Environment Secretary, gave a “cast-iron guarantee” that an incoming Labour Government would not make any changes to IHT relief. Farmers trusted in him. Some voted Labour; they feel totally betrayed. How do the Government expect to deliver the rural agenda of a farming policy without the good will of farmers? They have lost that good will. Farmers feel betrayed. There is still time to make up and repair the damage, but time is running out. I implore Ministers to listen.