Inheritance Tax Relief: Farms

Alec Shelbrooke Excerpts

Monday 10th February 2025 Westminster Hall

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

It is a pleasure to serve with you in the Chair, Sir Edward. Today I will highlight the shortsighted, reckless and misguided Labour policy to increase tax on farmers. I start by paying tribute to the petitioner for raising this important issue, and to the hundreds if not thousands of farmers outside this place showing how much they hate the policy.

It is an issue that has dismayed and appalled my constituents in the Scottish Borders. They are bitterly disappointed because this decision by the Prime Minister will mean the sad—even tragic—end of many family farms. Many farmers will no longer be able to pass their property, on which their ancestors may have worked for decades or longer, on to the next generation. That is not right. It is not why they have worked so hard to look after the countryside, and why they have got up early and worked late all their days.

What makes it worse is that they feel betrayed by a Labour Government that promised this would not happen. Labour made it abundantly clear that it would not increase taxes on farmers. But just like with the winter fuel payment to pensioners, and national insurance rises on businesses, Labour did not tell the truth. It broke its promises, and the consequences of it not keeping its word will be profound to people in the Borders, Scotland and the United Kingdom.

It is not only farmers in my constituency that the policy impacts, nor only workers in the rural economy, nor businesses in the food and drink industry. If the policy continues, it will affect everyone in one way or another. Labour’s decision will force the breaking up of many family farms, which will be tragic for those families. But it will also mean higher prices in shops and supermarkets for the rest of us. It will put our food security at risk and harm the environment, as we are forced to rely on costly imports that are not as high quality and that are flown in from much further away. How does any of that make sense?

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

Does my hon. Friend share my concern that, with the Government showing their inability to crack a good deal when they go into negotiations, they may well give in on any potential trade deal with America and allow cheaper products to undermine our beef and chicken farms?

[John Lamont]

My right hon. Friend makes an important point. If we are no longer self-sufficient in food production, we will become much more dependent on lower quality overseas imports.

Labour has made a grave error, which will cost our farmers and our country dearly. That is why so many people in the borders and across the whole United Kingdom are concerned by this decision. It will have negative consequences that last generations, and that may not be reparable. Unlike any other businesses, farms cannot come back once they close; they are often gone for good.

Labour simply is not listening. The Government even admitted as much to me lately: I submitted a question to the Secretary of State for DEFRA to ask how much correspondence his Department had received from individuals making representations on changes to APR and business property relief for inheritance tax since October, and the only response I got was that Ministers do not know—they do not have this information. That shows a stunning lack of respect for farmers and food producers. The Labour Government simply do not care.

Labour needs to rethink its family farm tax policy. Labour said “change” often enough in the run-up to the general election, and that is exactly what needs to happen now: this deeply damaging policy needs to change. It needs to be scrapped, or family farms will be lost, supermarket prices will go up, food security will be at risk and our environment will suffer. The Scottish and British people have spoken on this policy; now, Labour needs to listen.