Farming Families

Baroness Hoey Excerpts

Thursday 21st November 2024 Lords Chamber

[Baroness Hoey (Non-Afl)]

My Lords, I rise to express my disappointment and indeed my sadness at the Government’s attack on family farms. The Budget decision to abolish APR on inheritance tax—whatever is said by the Treasury about the dubious figures of the number of families affected—is a body blow to small family farms and is undermining the most important industry in our country. What makes it so much worse is that a specific promise was given before the general election that there were no plans to abolish APR, and it was not in the manifesto.

As has been said, this proposal was introduced with no prior involvement or discussion with the National Farmers’ Union. Indeed, it is impossible to find anyone who was consulted. I would like the Minister to confirm that it seems that even Defra officials and the Secretary of State were told only the night before the Budget. It is a measure being pushed through by the Treasury, which has long wanted to do this but was stopped by both Labour and Conservative Chancellors over the years. Sadly, the current Chancellor has given in, and now she will have to face the consequences—not just for her party but for the country. It sends a signal that the Government still do not really understand or even care about how farming works and the massive effects this will have on our rural communities.

I was born and reared in a very small farm in County Antrim in Northern Ireland, where there is a particularly large number of small-sized to medium-sized family farms. This will affect thousands of family farms in Northern Ireland. Not much unites politicians in Northern Ireland, but a letter was signed to the Chancellor just last week by every Member of Parliament, and every Peer in this House, from all the parties in Northern Ireland. That shows how strongly people in Northern Ireland feel.

Farming is not a normal business in so many ways, and even the Prime Minister seemed to understand that when he told the NFU that

“losing a farm is not like losing any other business—it can’t come back”.

Does the Minister understand that what can appear to be an affluent farm, with perhaps a well-maintained farmhouse, can be making virtually no money at the end of the year? The farm may be asset-rich, but the farming family is cash-poor.

What is so deeply worrying about this is that there has been no rural proofing. I thought that this was something that the Government said:

“Rural proofing is a commitment by government to review and examine all public policy to ensure it does not disadvantage rural areas”.


Have I missed this? Surely this could have been done by every government department before such a drastic measure was introduced. Even at this late stage, the Government could show that they have listened. Changing policy when it is proving disastrous is a mark of strength in a Government, not weakness. We all know what we want to achieve: to stop the very big, rich people buying land not for farming but just to get tax incentives—we must stop that. Surely there are some brains somewhere in the Treasury or the Government that could have come up with something that would have protected the small family farms and the livelihoods of those people and their rural countryside.