Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact of the Budget's changes to agricultural property relief from inheritance tax on the ability of young people to own an economically viable farm in the future.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The Government published information about the reforms to agricultural property relief and business property relief at GOV.UK.

It is expected that up to around 2,000 estates will be affected by the changes to APR and BPR. Up to around 520 of these are expected to relate to claims for APR (including those that also claim for BPR), and this number falls to around 430 when claims that include AIM shares are excluded. Almost three-quarters of estates claiming agricultural property relief (or those claiming agricultural property relief and business property relief together) each year are expected to be unaffected by these reforms.

In accordance with standard practice, a tax information and impact note will be published alongside the draft legislation before the relevant Finance Bill.

Alongside these tax reliefs, the Government has also confirmed that the existing scope of agricultural property relief will b extended from 6 April 2025 to land managed under certain environmental agreements.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact of the Budget's changes to agricultural property relief from inheritance tax on nature conservation on small farms.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The Government published information about the reforms to agricultural property relief and business property relief at GOV.UK.

It is expected that up to around 2,000 estates will be affected by the changes to APR and BPR. Up to around 520 of these are expected to relate to claims for APR (including those that also claim for BPR), and this number falls to around 430 when claims that include AIM shares are excluded. Almost three-quarters of estates claiming agricultural property relief (or those claiming agricultural property relief and business property relief together) each year are expected to be unaffected by these reforms.

In accordance with standard practice, a tax information and impact note will be published alongside the draft legislation before the relevant Finance Bill.

Alongside these tax reliefs, the Government has also confirmed that the existing scope of agricultural property relief will b extended from 6 April 2025 to land managed under certain environmental agreements.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact of the Budget's changes to agricultural property relief from inheritance tax on the ability of future generations of a family to farm the same land.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The Government published information about the reforms to agricultural property relief and business property relief at GOV.UK.

It is expected that up to around 2,000 estates will be affected by the changes to APR and BPR. Up to around 520 of these are expected to relate to claims for APR (including those that also claim for BPR), and this number falls to around 430 when claims that include AIM shares are excluded. Almost three-quarters of estates claiming agricultural property relief (or those claiming agricultural property relief and business property relief together) each year are expected to be unaffected by these reforms.

In accordance with standard practice, a tax information and impact note will be published alongside the draft legislation before the relevant Finance Bill.

Alongside these tax reliefs, the Government has also confirmed that the existing scope of agricultural property relief will b extended from 6 April 2025 to land managed under certain environmental agreements.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact of the Budget’s changes to agricultural property relief from inheritance tax on the mental health of farming families who own small farms.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

At the Budget, the Government took a number of decisions on tax, welfare, and spending to restore economic stability, fix the public finances, and support public services. The Government has done so in a way that makes the tax system fairer and more sustainable.

At the Budget, the Government set out that, from 6 April 2026, in addition to existing nil-rate bands and exemptions, the 100% rate of relief will continue for the first £1 million of combined agricultural and business assets, and the rate of relief will be 50% thereafter.

Almost three-quarters of estates each year claiming agricultural property relief, including those that also claim business property relief, are expected to be unaffected.

The Government is committed to supporting farmers and agricultural workers in accessing the support that they need as they undertake the vital work of producing food and looking after the environment. For example, through its Farming and Countryside Programme, the Department for Environment, Food and Rural Affairs (Defra) already works with a range of farming charities, including the Royal Agricultural Benevolent Institution and the Yellow Wellies charity, which have highlighted mental health challenges for farming communities.

Question to the Department for Education:

To ask His Majesty's Government what assessment they have made of the safety valve agreement, and of its impact in the local authorities where such agreements have been made.

Answered by Baroness Smith of Malvern - Minister of State (Education)

Safety Valve agreements were only entered into if the local authority and the department’s expert advisers agreed that the proposals would improve services for children and young people with special educational needs and disabilities (SEND) whilst enabling local authorities to meet their statutory obligations. Safety Valve agreements do not in any way release local authorities from their obligation to fulfil their statutory duties to children and young people with SEND.

The department is also conducting a research project into the impact of Safety Valves in local areas. This will help us further understand the experience of children, parents, carers and schools.

The department has confirmed that it will not enter into any more Safety Valve agreements for councils that have financial deficits, pending wider reform of the whole system to prioritise early intervention, properly supporting councils to bring their finances under control. We will will continue to work with local authorities that have Safety Valve agreements with the department, to deliver their plans.

Question to the Department for Education:

To ask His Majesty's Government what assessment they have made of the impact on the most vulnerable pupils with special educational needs in local authorities where a safety valve agreement has been made; and how they propose to minimise this impact.

Answered by Baroness Smith of Malvern - Minister of State (Education)

Safety Valve agreements were only entered into if the local authority and the department’s expert advisers agreed that the proposals would improve services for children and young people with special educational needs and disabilities (SEND) whilst enabling local authorities to meet their statutory obligations. Safety Valve agreements do not in any way release local authorities from their obligation to fulfil their statutory duties to children and young people with SEND.

The department is also conducting a research project into the impact of Safety Valves in local areas. This will help us further understand the experience of children, parents, carers and schools.

The department has confirmed that it will not enter into any more Safety Valve agreements for councils that have financial deficits, pending wider reform of the whole system to prioritise early intervention, properly supporting councils to bring their finances under control. We will will continue to work with local authorities that have Safety Valve agreements with the department, to deliver their plans.