Inheritance Tax, National Insurance and VAT

Baroness McIntosh of Pickering Excerpts

Monday 27th January 2025 Lords Chamber

[Baroness McIntosh of Pickering (Con)]

My Lords, I congratulate the noble Lord, Lord Morrow, on securing this debate. I will focus my remark on the Budget proposals threatening to break up and cause the collapse of family farms, in turn taking land out of food production while also threatening prospects for tenant farmers.

This proposal is economically illiterate. The current policy was permitted in the first place precisely because farms are capital rich and cash poor. Farmers contribute significantly to the UK economy. The figures from the ONS demonstrate that, in 2022, agriculture contributed £12.7 billion to England’s GVA—of which Yorkshire and the Humber contributed almost £1.5 billion—and in Scotland agriculture contributed £2.5 billion. So why would any Government imperil that part of the economy, and how much would it raise?

In the Urgent Question repeat today, the Minister admitted that figures from the OBR show that these proposals for APR and inheritance tax, taken together, will raise only £0.5 billion and not before 2029-30. As the OBR Supplementary Forecast Information Release of 22 January shows:

“the yield from this measure is not likely to reach a steady state for at least 20 years”

and that

“This policy costing was assigned a ‘high’ uncertainty rating”,


owing to the uncertainty of how farmers would respond to the measures

“given the range of options potentially available. This in turn adds uncertainty to the modelling of the behavioural responses”.

You could not make it up. It is a highly uncertain as well as highly undeliverable policy, representing a complete onslaught on rural life from a metropolitan elite, on top of the cancellation of the rural services delivery grant and planning laws leading to the destruction of the countryside. This is a cruel, nonsensical policy and should be reversed.