Rural Affairs
Debate between Victoria Atkins and Mark Garnier(1 week, 5 days ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Victoria Atkins
No. What is more, the NFU, the Tenant Farmers Association and the Country Land and Business Association cannot make them add up either.
Mark Garnier
The Secretary of State talked about the fact that the price of agricultural land is artificially high because of tax avoiders trying to avoid paying inheritance tax. The implication of the proposed measures would be that the price of agricultural land will fall. That may sound attractive to people who are trying to come into the market, but has my right hon. Friend considered the number of farmers who have mortgages against their land? They could find themselves in negative equity as a result of the pushing down of the price of agricultural land.
Victoria Atkins
Very much so, and I thank my hon. Friends the Members for Wyre Forest (Mark Garnier) and for North Dorset (Simon Hoare) for their accurate and insightful interventions. Not only do some farmers have mortgages, but we know tenant farmers worry that their farms will be sold off, so that the landowners can enter into what some call a “greenwashing” agreement with corporates, in order to plant trees and gain access to green funds. One should not make the mistake of assuming that this ill-thought-through policy will lead to cheaper land prices: the maths on that is almost as bad as the Chancellor’s cockeyed accounting with her economic inheritance.
Let me tackle the ideology of this policy, reiterated by the Secretary of State during this debate, which is matched by Labour’s incompetence. First, the Chancellor herself does not seem to know the threshold at which her policy kicks in and whether spouses can transfer their allowances. Indeed, the Secretary of State does not seem to know that either. The Chancellor has said that the allowances can be transferred, yet Treasury documents supporting her Budget say that they cannot. In his winding-up speech, will the Minister clarify whether the Treasury’s documents are wrong or the Chancellor is wrong?
Secondly, will the Minister explain why this Government have targeted only British-owned farms and businesses with this tax hike? Companies operating here but owned overseas, private equity-owned businesses and public companies listed on stock markets will not have to pay Labour’s tax; it is just British families.
Thirdly, the Chancellor—and, indeed, just now, the Secretary of State—gave assurances that only a quarter of farms will be affected, but that is not backed up by the data from the Secretary of State’s own Department. DEFRA figures show that, in fact, these changes will affect two thirds of farms—some 66%. Will the Minister explain that discrepancy and what he has done personally to confirm those figures, so that he ensures he gives only accurate information to the House?