Regional Growth

Andy MacNae Excerpts

Wednesday 4th June 2025 Commons Chamber

[Darren Jones]

I thank my hon. Friend for making the case for his constituency. As he says, the announcements today are for areas with combined authority mayors. The Government have said that if other parts of the country can get together and agree to have a combined authority mayor, they will be able to benefit from this type of announcement in the future. As for areas that do not have a mayor, this Labour Government are as committed to the people in those communities as to those in any other community across the country. We have already significantly increased funding through the autumn Budget 2024, including for road maintenance and pot holes, for maintaining a bus fare cap, and to support the extension of bus services, which he alluded to. We will continue to support those communities, and further details will be announced next week in the spending review.

[Andy MacNae (Rossendale and Darwen) (Lab)]

I hugely welcome these investments, which will free up the great potential of the north, or at least a part of it. The Green Book review will of course create the conditions that allow us to release the rest of the potential in left-behind areas and small towns, including those in Rossendale and Darwen. As a colleague said, we want similar investment in non-mayoral authorities. What assurance can the Minister give the people of Lancashire that we will see similar benefits to those that city regions enjoy?

Oral Answers to Questions

Andy MacNae Excerpts

Tuesday 20th May 2025 Commons Chamber

[Darren Jones]

A meeting of that nature has already taken place as part of our mission-led approach to Government. We continue to engage with the Departments for Energy Security and Net Zero and for Environment, Food and Rural Affairs on these issues, as the right hon. Gentleman suggests—it is exactly what we mean when we talk about cross-departmental collaboration. As the right hon. Gentleman knows, further details will be set out in the spending review in due course.

[Andy MacNae (Rossendale and Darwen) (Lab)]

9. What steps she is taking to increase levels of funding for northern towns.

[The Chancellor of the Exchequer (Rachel Reeves)]

I was pleased to go with my hon. Friend to Darwen to visit the 100th banking hub, which was rolled out just a few months ago. We also visited the thriving Darwen market in one of his local towns. We will set out at the spending review how we will spend the £113 billion extra that we are putting in to capital spending, compared with the plans we inherited from the Conservatives. Of course, we will ensure that towns and cities, including across the north of England, benefit from that investment.

[Andy MacNae]

I thank the Chancellor for that answer—the Government’s commitment to the north is absolutely clear. We very much enjoyed our visit to Darwen market. At the same time, however, history tells us that small towns, like those that make up Rossendale and Darwen, can far too easily get left behind and not feel the benefits of major infrastructure investment, despite being the very communities that need to see and feel change the most. Does the Chancellor agree that as we implement our investment and growth strategy, and deliver the review of the Green Book, we must put our left-behind communities first? As part of every major investment decision, we should ask the question: what does this do for our most deprived and left-behind neighbourhoods? It is only by targeting investment where it is needed most that we can ensure that every community feels the benefit of the growth that this Government will bring.

[Rachel Reeves]

My hon. Friend is a proud champion of the towns and villages of Rossendale and Darwen. We will make sure that we use our Green Book review to properly assess the benefit of all this Government’s investments. On top of that capital investment, the people of Rossendale and Darwen are benefiting from the 3 million additional appointments that we have delivered, which have led to reductions in NHS waiting lists, and also the increase in the national living wage, which will make working people in his constituency and across the country better off.

Farming and Inheritance Tax

Andy MacNae Excerpts

Wednesday 4th December 2024 Commons Chamber

[Sir Geoffrey Clifton-Brown (North Cotswolds) (Con)]

I declare my interest as a working farmer and a chartered surveyor.

When I drive through my constituency, I am always reminded that farmers are the most underrated and essential workers in the rural Cotswolds and many other rural areas. Many have worked the land for generations, and I think in particular of my constituent, Nigel—I will avoid his surname to avoid press intrusion—who is still farming at the age of 93. This Government forget that farming is not a hobby. It is farmers who wake up at the crack of dawn to ensure that the rest of the population have food on their table, who clear the roads when trees fall on them or they are blocked by snow, and who plant trees and wild flowers to ensure that our biodiversity is protected for future generations. The hard-working farming community was dealt a massive blow by this Labour Government’s Budget in October. As my right hon. Friend the Member for Louth and Horncastle (Victoria Atkins) on the Front Bench says, this is about not only the IHT changes, but the national insurance contributions, the change in minimum wage, the tax on fertiliser and an up to 211% tax hike for double cab pick-ups. All those extra costs take money out of a business.

I know that the Chancellor and the Prime Minister have both stated from the Dispatch Box that the IHT changes will not affect the vast majority of farms, and the Treasury has forecast that only 27% of all farms will be affected. However, as the Minister for Food Security and Rural Affairs knows, DEFRA’s own forecasts suggest that two thirds of farms will be affected by this destructive policy, and the National Farmers Union has recently published an analysis of the 27% figure, which found that it

“materially underestimated the true proportion”,

with around 75% of commercial farms to be affected. That is due to the Treasury using figures that are based on the 2021-22 agricultural property relief data, which is not representative of the current situation.

[Andy MacNae (Rossendale and Darwen) (Lab)]

Will the hon. Gentleman give way?

[Sir Geoffrey Clifton-Brown]

We have already had an exchange in interventions, so I ask the hon. Gentleman to first let me say this about land prices. I disagree with the point about land prices being inflated. We cannot buck the market. It is not the policies that inflate land prices; it is people coming in from outside agriculture who are putting up the prices.

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[Andy MacNae]

The NFU said that farms may be affected by the policy—that is the language that it used—taking no account of estate planning or any other mitigations that people might use. As the Secretary of State said, people take action in the event of change. The NFU has ignored that in quoting its statistics.

[Sir Geoffrey Clifton-Brown]

If the hon. Gentleman will just listen to my speech and the examples that I am about to give with an open mind, he might change his mind.

The Treasury does not include in its figures the impact of business property relief claims; that also fits under the same £1 million ceiling. According to the NFU, 40% of farmers also claim BPR on machinery and livestock, which makes the £1 million ceiling even more restrictive. As shown in an earlier exchange, the Government have failed to complete a proper impact assessment of the changes to APR and BPR on the rural economy. The hon. Member for Rossendale and Darwen (Andy MacNae) might be interested to hear that the CLA modelling has shown that the changes will lead to 5% of rural businesses closing, with up to 190,000 jobs lost from the rural economy, some in very remote areas, and it will be difficult to replace them.

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[Andy MacNae (Rossendale and Darwen) (Lab)]

As someone who lives on a farm, which is surrounded by farms, and whose family has farmed, and diversified, for generations, I add my voice to all those who have paid tribute to farmers for the crucial role they play in our economy. Many other hon. Members have said it more eloquently than I can, but let us all recognise the vital role of farms in our economy.

In common with colleagues, I met with farmers in the post-Budget period. Frankly, I was expecting a pretty hard time and there were some robust discussions, but they were also civil, constructive, informative and understanding. I pay tribute to the farmers and the NFU representatives who took that approach to the discussions. What most surprised me was how quickly the discussions immediately pivoted to the sense of anger, abandonment and betrayal that arose from the past 14 years, which have decimated the industry.

Fellow Members have described in detail—the hon. Member for Westmorland and Lonsdale (Tim Farron) described the situation particularly well—the betrayal of Brexit, the spiralling energy and feed prices, the spiralling land costs, and the terrible trade deals that opened the doors to poor-quality imports, which undermined the very farming markets that Conservative Members claim to value. As we have heard already, that dire management resulted in over 12,000 farms and agribusinesses going out of business since 2010. That is a terrible, shocking, shameful legacy. For Conservative Members to now present themselves as the champions of farmers is outrageous. They have used the word “arrogance”, but that is what they have displayed—a refusal to reference, understand or learn from their own history and failings.

[Josh Fenton-Glynn (Calder Valley) (Lab)]

Conservative Members talk about being friends of the farmers but for the past 14 years they were not. It shows how little they care that only 18% of their parliamentary party is present for a debate that they have called—[Interruption.] Only 21 out of 120 Conservative Members.

[Andy MacNae]

It is amazing; one of my colleagues talked about “the green fields opposite” in reference to the empty Conservative Benches.

Given that background, it is no surprise that farmers are angry, worried and feeling vulnerable. I associate myself with the remarks made by the hon. Member for Tiverton and Minehead (Rachel Gilmour), who called for calm and sense in the debate. Emotive language, designed to sow fear and cause concern is irresponsible at the very least, so let us try to keep to the facts and keep things calm and reasonable.

The focus of Conservative Members seems to be family farms, but the phrase “family farm tax” immediately creates a sense of fear and targeting, which is completely wrong. With some sensible tax planning, £3 million of assets can be exempt. Many speeches have glanced over the importance of gifting rights. Let us take the scenario of a family farm, in its truest sense, that is to be passed between generations. Surely, gifting rights are a massive opportunity to avoid all inheritance tax and remove the sense of fear that Conservative Members are trying to create. Most of the rest of the country has to do that simple estate planning by default.

[Harriet Cross]

As the hon. Gentleman will be aware, reservation of benefits applies when an asset that is still being used is passed on under the seven-year rule. Is he suggesting that a farmer who has been on their farm for their whole life should move out of their farmhouse, get off the land and pay market rate rent? Where will they get that money from, given that, as we know, farm profits are so small?

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[Andy MacNae]

A range of reliefs, benefits and rights create an ability, in most cases, to avoid tax. Let us take the seven-year rule. It is a tapered rule, so after four years, the liability drops from 20% to 12%. Also—this has not been mentioned much today—inheritance tax insurance is available. Particularly for younger farmers who wish to gift those assets to the next generation, inheritance tax insurance effectively mitigates any risk of death inside seven years. I recognise that for older farmers that can become quite expensive; none the less, it is a mitigation that is open to anybody. I recognise the issue of gifts with reservation, but that is my central point. It is not just me saying this; the Institute for Fiscal Studies has said that with sensible, realistic and relatively straightforward estate planning, estates worth considerably more than £2 million will remain exempt from tax.

There are many measures that can be taken. However, in this context, one of the great benefits of having detailed discussions with farmers is the ability to recognise the practicalities and the detail. By talking to Becki, who runs a multi-generational farm in Darwen, I came to recognise that there are very good arguments for a degree of flexibility around gifting rights and timescales for the over-80s. It is a perfectly good argument for the provision of professional and detailed tax advice to allow genuine family farms to take full advantage of all the reliefs that are available. I genuinely believe that well-advised true family farms can, with a plan to pass those farms between the generations, mitigate or completely avoid any liability from these taxes.

I will finish by going back to the main point that Members have made: farms do not make enough money. Turning things around, getting back to a situation—[Interruption.] We need to get back to a situation where farms can succeed as businesses and where we bring costs down, not just raise prices as was suggested. We need to bring energy costs down and make bills are more stable, use the Government’s purchasing power to buy locally produced food, protect farmers from being undercut through bad trade deals, and remove risk through a rural crime strategy and the floods resilience taskforce. Our plan for farms is supported by £5 billion, which is the biggest investment in farms in generations. Let us stop the scaremongering, get behind British farming and reverse 14 years of decline.