Agricultural and Business Property Relief

Alec Shelbrooke Excerpts

Tuesday 14th January 2025 Westminster Hall

[Graham Stuart (Beverley and Holderness) (Con)]

I beg to move,

That this House has considered the impact of planned changes to agricultural property relief and business property relief on small businesses.

It is pleasure to serve under your chairmanship, Dr Allin-Khan, and to see so many colleagues from across the House here today. Perhaps it is not surprising that we have a redoubtable Minister, who picks up the poisoned chalice on so many occasions. He will do so today, no doubt both well informed and with good humour, as he has done previously.

I refer to my declaration in the Register of Members’ Financial Interests as a recipient of campaign donations from businesses and farmers across Beverley and Holderness. Given the rural nature of my seat, I will start by focusing on the twin impacts of the changes to agricultural property relief and business property relief on family farms, followed by the impact of changes to BPR on family businesses. We have just a half-hour debate, and a colleague asked the good question of why it was so short for something so big. That means I will probably be the sole speaker, but I am happy to take as many interventions as I can, because I know that concern is widespread.

In her autumn Budget, the Chancellor announced a significant change to APR and BPR, set to take effect from April 2026. She is imposing a 20% tax on the value of land and machinery exceeding £1 million. That is known by many of us as a family farm tax. By the Government’s own estimate, it could result in one farm closing in every rural constituency every year.

[Sir Alec Shelbrooke (Wetherby and Easingwold) (Con)]

I thank my right hon. Friend for securing this debate. I also draw attention to my entry in the Register of Members’ Financial Interests. When a small farm has been in a family for generations, that family knows the local watercourses better than anybody else. Does my right hon. Friend share my concern that as those small farms disappear and move towards development, flooding issues may result because the local knowledge that would prevent flooding will be lost?

[Graham Stuart]

I thank my right hon. Friend for that intervention. On Friday, I visited Ian and Rebecca at Bygott farm just outside Beverley, which is about 220 acres. Their profits would be wiped out by the expected inheritance tax for 10 full years, with 10 years to pay it. The expected annual payment for 10 years would be greater than their profit last year. They also play that vital role, which my right hon. Friend mentioned, of looking after the watercourses. The villagers nearby do not know what a critical part they play in maintaining those watercourses.