Rural Businesses: Taxation

Baroness Prentis of Banbury Excerpts

Monday 7th September 2026 Lords Chamber

Asked by

[Baroness Prentis of Banbury]

To ask His Majesty’s Government whether they plan to reduce taxation on rural businesses.

[Baroness Prentis of Banbury (Con)]

My Lords, in begging leave to ask the Question standing in my name on the Order Paper, I declare an interest as an executor who is currently trying to sell our family farm.

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Baroness Hayman of Ullock) (Lab)]

My Lords, the Government keep all taxes under review, with decisions being for the Chancellor at fiscal events. We recognise the vital contribution of rural communities and businesses to the UK economy and the need for policies that actually work for rural areas. Support available includes rural rate relief, small business rates relief, a high VAT registration threshold and the small profits corporation tax rate. We are also supporting farmers through reduced red diesel duty rates until the end of this year, and through measures to promote sustainable farming and food production.

[Baroness Prentis of Banbury (Con)]

My Lords, the family farm tax is both hated and feared. It taxes a business asset as if it is personal wealth. I know that the Minister was not consulted—nor was her department—before the tax was put in place. Will she reassure the House, which I know appreciates all that she does for us, that she will personally make representations to this Chancellor before this Budget, as those of us who care about the countryside and the NFU are currently doing, to make sure that this hated tax can be removed?

[Baroness Hayman of Ullock (Lab)]

I am sure that the noble and learned Baroness is aware that, absolutely, I support the importance of farming to the rural economy and the importance of the work that farmers do through food security to the wider economy of the country. She will also be aware that we have discussed this matter on a number of occasions and that the Treasury has made it quite clear that it is not intending to revisit the issue of inheritance tax. I am aware that the Prime Minister was asked about this during the by-election in Makerfield. However, as I said in my original Answer, the Government always keep taxes under review. I will ensure that the new Chancellor is aware of the strength of feeling on this matter.

Trail-hunting

Baroness Prentis of Banbury Excerpts

Wednesday 18th March 2026 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

Do not open that Pandora’s box—that is what I would say to the noble Baroness. More seriously, I know that there are concerns on both sides. This is a polarising debate, with strong feelings on both sides. That is why I am determined to hold a proper, detailed consultation, where everyone has the ability to put forward their concerns, so that we can move forward in a way that delivers our manifesto commitment, while at the same time making sure that we do what we can to mitigate any concerns that are put forward.

[Baroness Prentis of Banbury (Con)]

My Lords—

--- Later in debate ---

[Lord in Waiting/Government Whip (Lord Lemos) (Lab)]

We will hear from the Conservatives next.

[Baroness Prentis of Banbury (Con)]

It is nice to be back. I remember just enough of the rules to know that I should declare my interest as a trustee of the Countryside Alliance. I remember only too well how hard it is to bid for legislative time, particularly in Defra, and I am concerned that other priorities will be overtaken if this consultation and legislation go ahead. Does the Minister really not have other things that she would rather do?

[Baroness Hayman of Ullock (Lab)]

I warmly welcome the noble and learned Baroness back to her place—it really is a pleasure to see her. She is absolutely right: pitching for legislation is great fun in every department, I am sure, and certainly in Defra. As I said, the reason this is one of our legislative priorities is that it was a manifesto commitment, but clearly there are also other manifesto commitments. In Defra we are working out a timetable for how we can deliver all of those at the same time as other priorities.