Oral Answers to Questions
Alistair Carmichael Excerpts(1 week ago)
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Mr Speaker
I call the Chair of the Environment, Food and Rural Affairs Committee.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
I congratulate the Secretary of State, and indeed the Chancellor of the Exchequer, on the achievement of the Budget: in 23 years in this House, I have never seen such a degree of unity among farming organisations in their response to it. One point on which there seems to be no disagreement is that the removal of the ringfence around agricultural payments to Scotland, Wales and Northern Ireland is a bad move. Nobody asked for it. Why did the Government do it, and what do they expect to achieve with it?
Steve Reed
The right hon. Gentleman will be aware that we have announced the biggest Budget for sustainable farming—£5 billion over the next two years—in the history of our country, and that is to be welcomed by everybody in the sector and everybody who cares about it. This is a Government who believe in devolution. We believe that devolved Administrations should have the right to take decisions about their own countries. The consequentials mean that the appropriate level of funding will continue to go to those devolved Administrations, and our support for devolution means that the devolved Administrations will take their own decisions about the best way to spend it.
Rural Affairs
Alistair Carmichael Excerpts(1 week, 3 days ago)
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Mr Alistair Carmichael (Orkney and Shetland) (LD)
I remind the House of my entry in the Register of Members’ Financial Interests. I congratulate all those who delivered their maiden speech tonight, and I look forward to hearing more from them in the years to come. I welcome this debate, which is exceptionally timely and important, and the fact that it is in Government time. I say gently to those on the Treasury Bench that if this is the start of a process of engagement with rural communities, that is welcome, but there has to be a process; this debate alone will not be enough.
The truth is that in the countryside, there is a genuine crisis of confidence in communities’ futures, and in the future of farming. That is felt deeply in my constituency. I spent time on Saturday afternoon talking to four farmers in Orkney. Those young men had made a genuine commitment to the industry and are now at a loss. I really did not know what I could say to give them comfort or optimism. The language they used was interesting. One of them continually described the changes as “cruel”. It is worth reflecting on why he did that. It was not hyperbole. Here was somebody who had given his family and his community a commitment that he would farm for the rest of his days, and suddenly it felt as though he had been cut off at the knees.
The Minister will doubtless tell us the number of estates that will, or will not be, affected. Those figures will need rather more robust scrutiny than they have had thus far. However, it is not all about figures; it is also about the psychology and the commitment. These people are hurting, and if there is to be any chance of the Government turning things around, there will have to be a rather more substantial and prolonged programme of engagement. Farming is at the heart of the countryside community. This is not just about the money that goes to farmers; that money then goes to seed merchants, feed merchants, hauliers, marts, vets, contractors, and the one-man businesses that go around farms paring feet, scanning for pregnancy and the rest of it. It is right that the most significant feature of the Budget for the community was inheritance tax, but there was an awful lot more in it that caused me concern.
Mr Richard Holden (Basildon and Billericay) (Con)
The right hon. Gentleman mentions the consequences for the broader community and businesses of extra taxes on the agricultural sector. Those are felt in my constituency of Basildon and Billericay, where we have the big New Holland tractor factory. This weekend, constituents were already coming to me worried about how the changes will impact their jobs. It is not just rural Britain that is affected. Does he acknowledge that there is a knock-on effect across the entire economy?
Mr Carmichael
I fear that there absolutely is that impact. That is why I gently caution those who frame the issue as a debate between urban and rural communities to think a bit more carefully. There is a strong case to be made for explaining to people in towns why people in the countryside matter to them, their future and the economy, rather than setting this up as a contest between the two.
Beyond inheritance tax, other issues in the Budget caused me concern, including the return of changes to the treatment of double cab pick-ups, and the effect of the carbon border adjustment mechanism on fertilisers. We all know what happened to food prices the last time we saw a spike in fertiliser prices. That was not caused by the imposition of a tax, but it does not matter what causes it; the effect will still be felt by families. There are also the measures on furnished holiday lets. Farmers have for decades been encouraged by successive Governments to diversify their business. Many have gone into furnished holiday lets for extra income, but they now find that they are being clobbered again. They are having the rug pulled out from underneath them.
The inheritance tax changes have generated the greatest concern. I hear talk of scaremongering, but there has to be better respect than that for those concerned about the changes. I suspect that a lot of the figures that we hear have been affected by inter-vivos transfers between the generations. That is the most obvious way that inheritance tax can be dealt with by an estate or a family, but it leaves families open to difficult conversations and to the law of unintended consequences. Nobody knows what is around the corner, especially in farming, which, as we know, is one of the most dangerous occupations out there.
I have sympathy with the Government wanting to close fairly well reported and documented loopholes, but to do that at the expense of family farms is unjustifiable. The root of the problem, and the issue on which the Minister needs to engage with the Treasury, is that the threshold has been set far too low. When the Budget changes were announced, I went to estate agency websites in Orkney and Shetland, and I found two farms currently on sale in Orkney, both on one of the outer isles—further away, where we would expect land prices to be slightly lower—and both were being sold by the same family. One was for £2 million and the other was for £2.2 million. If those are the prices on an outer isle of Orkney, I can only assume that one would add a significant margin in Aberdeenshire, and a larger margin in Fife and the Borders. By the time we get to the home counties, goodness only knows what the price would be.
The concerns of agricultural and rural communities are genuine and well founded, and they need to be addressed. There is a serious debate to be had here, and I very much hope to be part of it. The Minister is well intentioned and diligent, but he needs to listen more to the people affected by his decisions—and, I am afraid, to listen less to the Treasury.
Future of Fishing
Alistair Carmichael Excerpts(2 weeks, 2 days ago)
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Torcuil Crichton
I agree that we should disagree agreeably when it comes to common national assets such as fishing.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
I am interested to see that the hon. Gentleman has rediscovered his distributist roots from Glasgow university. There are serious, practical considerations here to be faced before we get to the point that the hon. Gentleman would want to get to, which has significant force. Most skippers in my constituency, and in his, are carrying massive amounts of debt and loans. If we cut the feet out from underneath them in terms of quota reallocation and the rest, the law of unintended consequences could be really severe for the people who have kept that industry going through the lean times.
Budget: Implications for Farming Communities
Alistair Carmichael Excerpts(2 weeks, 3 days ago)
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Mr Alistair Carmichael (Orkney and Shetland) (LD)
(Urgent Question): To ask the Secretary of State for Environment, Food and Rural Affairs if he will make a statement on the implications of the Budget for farming communities.
The Minister for Food Security and Rural Affairs (Daniel Zeichner)
I welcome the right hon. Gentleman to his place—he will make an excellent Chair of the Select Committee on Environment, Food and Rural Affairs—and thank him for the opportunity to talk about this important issue.
As the Minister for Food Security, I can assure the House that food security is national security. The Government’s commitment to supporting farmers and rural communities is unwavering. We have committed £5 billion in the agricultural budget over the next two years—the biggest ever budget for sustainable food production and nature recovery in our country’s history. We are also releasing £60 million to support farmers whose farms have been devastated by severe flooding, and investing £208 million to protect the nation from potential disease outbreaks that threaten our farming industry, food security and human health.
However, as we are all only too aware, the Conservatives left behind a £22 billion black hole in our nation’s finances—[Interruption.] Yes, you did. And this Government have had to take tough decisions on tax, welfare and spending to fix the foundations and deliver change, including a series of decisions on tax to protect the payslips of working people. That is possible only by making changes to other taxes, such as agricultural property relief, which was previously available to all agricultural property at a rate of 100%. Currently, small farms can find themselves facing the same levels of tax bills as much larger farms, despite having a much smaller asset. Twenty per cent of agricultural property relief is claimed by the top 2%; 40% is claimed by the top 7%. That is not fair, it is not sustainable, and sadly, it has been used in some cases by wealthy landowners to avoid inheritance tax. That is why the Government have announced plans to reform agricultural property relief.
The Secretary of State met National Farmers Union president Tom Bradshaw this morning. We absolutely understand—[Interruption.]
Mr Speaker
I call the Chair of the Environment, Food and Rural Affairs Committee.
Mr Carmichael
I remind the House of my entry in the Register of Members’ Financial Interests.
Thank you, Mr Speaker, for allowing this urgent question. I also thank the Minister for his statement, but I fear that it illustrates rather well some of the lack of understanding that has brought us to this point. More than any other industry, farming relies on stability and long-term planning. That is why many people in the industry relied on undertakings given by the Secretary of State when in opposition that the Labour party in government would not change inheritance tax reliefs for farming.
Every farming business is capital-rich but revenue-poor. Those businesses also trade in a market that has been more heavily influenced by government intervention than any other. Agricultural property relief is not a loophole; it has been a deliberate policy of successive Governments for the past 40 years, designed to avoid the sale and break-up of family farms. Is that still a goal to which this Government adhere? As the NFU put it, the Government have seemingly failed to grasp
“that family farms are not just small farms, and that just because a farm is a valuable asset it doesn’t mean those who work it are wealthy.”
As the Minister will be aware, some of the figures he has just given the House have been vigorously challenged over the past few days, particularly the assertion that only one in four British farms will be affected. Will the Minister and his Treasury colleagues publish the data behind those figures? In particular, does the figure that 73% of farms will not be affected rely on the inclusion of very small holdings?
These changes will have a ripple effect across the whole rural community. Will the Government publish their impact assessment for other rural businesses? Can the Minister also explain why the Treasury has removed the ringfence around farm support to be spent in Scotland, Wales and Northern Ireland? That ringfence was introduced after the Bew review. If it needed a review to introduce it, how can it just be abolished now out of the blue?
The Prime Minister has said in the past, and the Minister has repeated today, that food security is national security. Can the Minister point to one measure in this Budget that makes achieving that aim easier, rather than harder?
Daniel Zeichner
I thank the right hon. Member for his questions, which are serious and important, as one would expect. Let me start by pointing out that until 1992, this relief did not exist. The system has existed before and people have operated differently, although I accept it has been different for the past 30 years.
Turning to the figures, I encourage people to reach for the detail—to look at the actual figures. The only thing we can go on is the claims, and the figures coming from the Treasury on claims for the last year available absolutely reflect that 73% figure. The right hon. Gentleman raises an important point about the ringfence; that point is under discussion, but I have made assurances that the devolved Administrations will be closely informed about, and involved in, what happens. These are important points, and they should be treated seriously.
Independent Water Commission
Alistair Carmichael Excerpts(4 weeks, 1 day ago)
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Mr Alistair Carmichael (Orkney and Shetland) (LD)
The Secretary of State is quite right to point to the role of the payment of bonuses and dividends in bringing us to this point, but he must surely acknowledge that that is far from being the whole story. There are a number of business and accounting practices in companies such as Thames Water that have brought us to the stage we are at today. If he is serious about having a water system that is fit for the future, he has to understand properly what has gone on before. Will he therefore confirm that the commission will be properly resourced with the necessary forensic accounting resource, so that those who have been responsible for the most egregious practices in the past and who now seem to be appearing in other water companies around the country will not be allowed to do the same thing there?
Steve Reed
I thank the Chair of the Select Committee for the points that he makes. Of course, he is right. The Water (Special Measures) Bill, with its ban on bonuses, will not be sufficient to reset the sector, although it is an ask that the public are rightly making because of the unfairness of people who are overseeing failure being richly rewarded for that failure. That should not have been allowed to go on under the previous Government, and it will not go on under this new Government.
The reason we have set up the commission is to address the very points the right hon. Gentleman makes about financial and environmental sustainability and viability. I look forward to working with him and his Committee as the commission carries out its work, as we review its findings in the summer of next year, and as we then shape what will be significant new legislation to reset the sector—a reformed sector—in a new partnership with Government to bring in the investment that will finally clean up our waterways.
Oral Answers to Questions
Alistair Carmichael Excerpts(2 months, 1 week ago)
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Mr Speaker
I call the Chair of the Environment, Food and Rural Affairs Committee.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
Arguably, and in the view of some of us, ours is the finest Select Committee in the House.
The problems with the uptake of ELMS have been at the heart of a significant departmental underspend. No fair-minded individual would blame the current Government for that, but if that money disappears back into the Treasury, never to be seen again on farms, that blame will be attached to the current Government. In opposition, they said that any underspend should be rolled over into future years. Is that still their position in government, and how will they do it?
Mary Creagh
I congratulate the right hon. Gentleman on his election to the second best Committee in the House of Commons. We will have to sort that out outside.
There was about a £350 million underspend in the farm budget under the previous Government, who failed on their manifesto pledge to spend £2.4 billion a year on farmers. We are looking at everything as part of the spending review and decisions will be announced in due course.
Sheep Farming
Alistair Carmichael Excerpts(2 months, 2 weeks ago)
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Joe Morris
The hon. Member makes a valid point, which takes me back to a conversation about rural crime that I had near Byrness in my constituency. A local farmer told me that when criminals came out, she had to wait 45 to 50 minutes for the police to arrive. I hope that the Government will look carefully at sheep worrying as part of a broader rural crime strategy and I look forward to the Minister’s answer on that.
On trade deals, we must look at the lack of basic oversight and scrutiny in our trade negotiation processes. I know that is not the Minister’s responsibility, but I hope that he will energetically lobby his colleagues at the Department for Business and Trade to make sure that decisions are made with the security of our farmers in mind.
I spoke to farmers who were consistently worried about rising input costs, with the rise in the cost of energy and the rate of inflation biting away at their takings. More than most, farmers have been hit by the chaos inflicted on the country by the mini-Budget and the previous 14 years. They saw their income drop because of the playing field being rigged in favour of producers from other countries who did not have to meet the same welfare and production standards. They also saw big business whittling away at small farmers and able to continually—
Joe Morris
I will finish my sentence and then give way. Farmers saw larger businesses able to continually dictate terms to tenant farmers when it came to selling their produce.
Mr Carmichael
I thank the hon. Gentleman for giving way and remind the House of my entry in the Register of Members’ Financial Interests as an owner and operator of farmland on Islay. On the imbalance between the small operators—as people are predominantly in the sheep sector—and the bigger players, one thing that the public sector could do to add a bit of value would be to support the reconstruction of a network of local abattoirs. That is a genuine opportunity to put in place meaningful and direct support for the small farmers and small units that he is talking about.
UK Food Security
Alistair Carmichael Excerpts(8 months, 1 week ago)
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Sarah Dyke
I agree that we need to balance food production with ensuring we protect our precious environment. Farmers obviously have a key role to play in that.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
Before my hon. Friend leaves this topic, I think this comes to the heart of the matter. One of the biggest barriers, particularly for red meat producers, to putting produce into a local supply chain is the inability to get it slaughtered close to the point of production. Does my hon. Friend agree that ending the ever-increasing move towards larger, centralised abattoirs would allow a regrowth of smaller abattoirs closer to the point of production, which is better for animal welfare, carbon emissions and, ultimately, for producers being able to access that much more diverse range of markets?
Sarah Dyke
I thank my right hon. Friend for his comments. As the owner of a small flock of sheep—
Sarah Dyke
Fine Shetland sheep, indeed. I do understand the challenges of accessing a local abattoir, not only a local one but one able to help with the services that small producers require. I will cover that in a minute, but I would like to make some progress.
I want to see changes in the public procurement system that provides schools, such as King Arthur’s School in Wincanton or Ansford Academy in Castle Cary, Frome College or Huish Episcopi Academy with the flexibility to source local produce, whether that be food or drink, and ensure that local provenance. Many schools do not have the flexibility to do that. That particularly resonates with regard to the 800,000 children living in poverty who are not eligible for free school meals as their households are in receipt of universal credit and have in excess of a £7,400 post-tax income.
Building awareness among children of where their food comes from now can sow the seeds of good food habits for life. The Liberal Democrats believe it is crucial that we extend free school meals to all children in primary education and all secondary school children whose families receive universal credit, but there is a threat to that. There has been a 12% increase in the number of large-scale industrial farms in the UK from 2016 to 2023. The intensive nature of those farms means that accessibility to local food and drink is likely to be diminished. Environmental standards will decline and the custodians of our countryside—the small family farm—will disappear.
Rural Communities: Government Support
Alistair Carmichael Excerpts(11 months, 4 weeks ago)
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Tim Farron (Westmorland and Lonsdale) (LD)
It is an honour to serve under your guidance once again, Sir Charles. It is a real privilege to follow everybody in this debate, but especially my hon. Friend the Member for Somerton and Frome (Sarah Dyke), who succeeded in securing this debate and made an outstanding speech at the beginning.
I want to cover many issues we have already talked about, and I will start with farming. Farming is crucial to feeding our country, protecting and restoring our environment, tackling climate change, promoting biodiversity and underpinning the landscape that our tourism economy depends on, but it has been badly let down. Farmers across my community feel angry with this Government for many reasons—including the trade deals with New Zealand and Australia that threw them under the bus—but specifically, as my hon. Friend the Member for Somerton and Frome mentioned, the botched transition from the old scheme to the new scheme.
We believe in environmental land management schemes, and we think the project is one worth supporting. However, the Government promised £2.4 billion in their manifesto for farming in England, and the latest figures for 2022-23 show £1.97 billion for agriculture in England. Environmental schemes have increased in their expenditure to farmers by £145 million a year—great—but basic payments have fallen by £490 million. We see upland livestock farm incomes down by 44% and lowland livestock farm incomes down by 41%.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
I remind hon. Members of my entry in the Register of Members’ Financial Interests. If the Government find it so difficult to put money into farming in the way my hon. Friend describes, could they not perhaps give a bit more attention to ensuring that farmers get a fair price for their product at the farm gate? The Groceries Code Adjudicator has not achieved what we wanted it to, but surely somebody, at some point, has got to address the fact that that market is failing, and it fails to the disadvantage of our farmers and rural communities.
Tim Farron
I am extremely grateful to my right hon. Friend for making that point; he is absolutely right. The Groceries Code Adjudicator has the capacity to potentially make a big difference for farmers and growers—producers of all kinds. But the reality is that it does not have the sanctions and remit. It is not allowed to take third-party referrals from the likes of us or the NFU on behalf of farmers who are being stitched up by processors or retailers. It is absolutely right that the Government support farming, but the market should be fixed so it does not exploit our farmers either.
We already have a situation where we are only 58% self-sufficient in farming in this country. We are never going to deliver the environmental goods we need if we do not have those expert hands on the land delivering those environmental policies. Our landscapes are at risk of changing radically, dramatically and negatively to undermine—for example—the £3.5 billion-a-year tourism economy of the English Lake district.
Moving on to broadband, Project Gigabit is a good idea, but there will be many people who miss out. Thousands of homes in my part of Cumbria are outside the scope, or in deferred scope, of Project Gigabit. B4RN—the Minister may be aware of it—or Broadband for the Rural North is an excellent local community interest company. It could absolutely connect all of those homes in—I am going to mention them now—parts of Sedbergh, Kaber, Murton, Long Marton, Winton, Warcop, Ormside, Hilton, Hartley and Bleatarn.
I mention those places because, if the broadband voucher system were still available, they could be connected now through B4RN, if it was not for the fact that Project Gigabit is trying to only ride one horse, and is not prepared to accept that not every issue has to be dealt with in the same way—one size does not fit all. I ask the Minister to look specifically at those communities and consider restoring the vouchers to them so that they can be connected well and connected now.
I want to briefly move on to buses. The right hon. Member for Suffolk Coastal (Dr Coffey) rightly points out the importance and value of the £2 bus fare, which I think has increased footfall or “busfall” by about 10%—it certainly has in my community. The £2 bus fare does a fat load of good if there is no bus. I want this Government to give local authorities like mine the power to run their own bus companies and the funding to ensure that they work. Buses often do not make a profit, but they are the oil that ensures that the economy works in communities to keep people connected and to ensure that people can get to work and school, or make use of leisure facilities. Back our buses.
Storm Babet: Flooding
Alistair Carmichael Excerpts(1 year, 1 month ago)
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Rebecca Pow
I hear what my hon. Friend says. That is why we will be working closely with DLUHC on what is possible to help local authorities with the clear-up. Derbyshire has been really badly hit, but it has also had £74 million of flood defence schemes, better protecting 3,900 properties. A great many properties were protected that might otherwise have been flooded. We also have to bear that in mind.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
The Minister may not be aware of this, but the BBC website has confirmed in the last hour that there are now three confirmed deaths in Scotland as a consequence of Storm Babet. Each one is a tragedy, and I am sure that we all send sympathies and condolences to them and their families. The loss of life could have been so much worse, but for the willingness of others to put themselves in harm’s way. In Shetland, the Lerwick lifeboat was at sea for 18 hours in atrocious conditions to save the lives of those on the Danish trawler Westbank, and the coastguard helicopter airlifted 45 workers from the Stena Spey, an offshore drilling rig. Does the Minister agree that they deserve our gratitude and commendation, and will she have a word with her colleagues in the Department for Transport, who are currently proposing that the response time for the Shetland coastguard helicopter be increased from 15 minutes to 60?
Rebecca Pow
Of course I send condolences for all three of those deaths—any death is absolutely tragic—and I commend the lifeboat team who did such spectacular work in rescuing the trawler and those who rescued the people on the oil rig. This is a tremendous story and accolade for them. I am not sure that I am the one who can trigger the commendation, but I am sure that the right hon. Gentleman’s suggestion will be fed in, and I will certainly pass his other comments to the Department for Transport.