Rural Affairs

Ben Obese-Jecty Excerpts

Monday 11th November 2024 Commons Chamber

[Steve Reed]

If the hon. Lady will forgive me, I want to make a little progress.

The new deal for farmers includes seeking a new veterinary agreement with the EU to tear down the export barriers that the previous Government erected in the first place; backing British produce by using the Government’s purchasing power to buy British; and protecting our farmers from ever again being undercut by low welfare and low standards in trade deals like the disastrous one the previous Government signed with Australia and New Zealand.

The House is aware that the Government inherited a catastrophic £22 billion black hole in the nation’s finances, meaning we have had to take tough decisions on tax, welfare and spending to protect the payslips of working people. This has required reforms to agricultural property relief. I recognise that many farmers are feeling anxious about the changes; I urge them not to believe every alarming claim or headline and I reassure them that the Government are listening to them. We are committed to ensuring the future of family farms. The vast majority of farmers will not be affected at all by the changes. Let us look at the detail.

[Ben Obese-Jecty (Huntingdon) (Con)]

Will the Secretary of State give way?

[Steve Reed]

If the hon. Gentleman will give me a little time, it is important that I make these points.

Currently, 73% of agricultural property relief claims are less than £1 million. An individual farm owner can pass on up to £1.5 million and a couple can pass on up to £3 million between them to a direct descendant, free of inheritance tax. If a couple who own a farm want to pass it on to a younger relative and one partner predeceases the other, each of them has a £1 million APR threshold that they can pass on. Add those together and that is £2 million, plus the £1 million that a couple with a property can pass on to their children. For most people, that is an effective threshold of up to £3 million to pass on without incurring inheritance tax. Any liability beyond that will be charged at only half the standard inheritance tax rate and payment can be phased over 10 years to make it more affordable. Farmers will be able to pass down their family farm to future generations, just as they always have done.

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[Sam Carling (North West Cambridgeshire) (Lab)]

Some 81% of the land in the area that I represent is agricultural, meaning that North West Cambridgeshire, like much of the east of England, contributes a great deal to our country’s food security. As the Government have repeatedly and rightly said, food security is national security, and I am proud that my constituents play a huge role in that.

Farmers suffered under the last Government. Just before the general election, farmer confidence was at its lowest level since records began, but this Government are taking positive steps to reverse that trend. The farming budget for 2025-26 will be £2.4 billion, which is the biggest budget ever directed at sustainable food production, and will be vital for farmers across the country and in my constituency.

For those affected by flooding last year, I welcome the immediate £60 million made available from the farming recovery fund, which is a big increase compared with the figure under the last Government. I was also glad to hear the Secretary of State clarify earlier that the “vast majority” of farmers will not be affected by the change to agricultural property relief, and his assurances that the Government will protect family farms by preventing people coming from outside and buying farmland over the heads of local people to evade taxes.

One of the most pressing and significant issues that farmers have raised with me is the income of food producers. The dynamic between buyers and producers needs reform, with many producers reporting that they take under 1% of profit after retailers and intermediaries have taken their cut. With more than 95% of our food sold through just 10 retailers, many feel that some supermarkets are not giving them a fair deal. I strongly encourage the Government to look at that issue.

I also welcome the Secretary of State’s earlier comments about ensuring that trade deals do not undermine our farmers. For too long, we have allowed imports of food, both plant and animal products, that has been produced to lower standards than we expect of our farmers. That undermines them and tilts the playing field towards imported food because it prevents them competing on price. We must take action on that.

I now turn to rural crime. Many of our country’s rural towns have significant problems with crime, with a lower police presence following cuts under the last Conservative Government and an under-resourced justice system that has not been able to cope. My constituency has several rural towns and villages, including Ramsey, which has faced a string of robberies and knife-related incidents in recent years. Although the offenders in many of those incidents have been arrested and charged—I thank Cambridgeshire police for that—we must resource our police to restore their ability to work on prevention, not just to respond to crises.

The Government stood on a clear pledge to combat crime in our towns by bringing back neighbourhood and community policing with thousands of additional officers. Rural towns such as Ramsey must get their fair share of that, and I know that the Government are hearing that message.

Transport is also a significant issue, with limited public transport options in Ramsey and other towns. People living in rural areas often have fewer options for services, including education, employment and health services, and those who rely on public transport, which can be limited and inconvenient, are at a double disadvantage. Timetabling decisions based on commercial factors mean that children who live in rural areas in my constituency struggle to get to school, particularly in the village of Wittering.

[Ben Obese-Jecty]

Buses in Cambridgeshire are controlled by the combined authority and its Labour Mayor. Will the hon. Member, whose constituency neighbours mine, put pressure on Mayor Johnson to ensure that all our rural communities are included in the bus franchising and that we get the services that are desperately needed? As the hon. Member has pointed out, the Mayor is failing in that respect so far.

[Sam Carling]

I thank the hon. Member for his intervention. He claims that bus services are under the control of the combined authority, but the problem is that we do not have franchising yet. We are working on that and, in case any of my constituents are listening, the consultation is still open but will close on 20 November, so please fill it in—I just wanted to get that plug in.

In the lead-up to franchising, which will hopefully come through, the combined authority is already working to subsidise essential services and working with commercial companies to tackle the issues. I am confident in the work that we are doing. I am proud that the Government’s better buses Bill will deliver the opportunity for franchising to more local authorities. I urge the Government to keep making progress on making franchising easier, alongside their progress on nationalising our rail infrastructure, which we heard more about earlier.

Broadband connectivity must be another priority. Internet and mobile phone coverage has improved, but the service for people living in rural areas still has a long way to go. As of January, 47% of rural premises had access to gigabit-capable broadband, compared with 84% of premises in urban areas. That has serious implications for productivity, making it harder for people to work from home who would otherwise do so, for example. More widely, it has an impact on the ability to stay in contact with friends and loved ones who may be further afield.

I thank all hon. Members across the House for raising so many points today. I look forward to the Minister’s response.

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[Ben Obese-Jecty (Huntingdon) (Con)]

As an MP in a largely rural Cambridgeshire constituency, the potential impact of the changes to both agricultural and business property relief stand to have a devastating effect on the livelihoods of our family farms. I struggle to believe that newly minted rural Labour MPs, or indeed Cambridge’s own farming Minister, are experiencing full-throated support for this policy. We are yet to see Government Members take a stance against this policy on behalf of their constituents. They must be receiving the same angry and worried emails that we are, yet the few who actually come to the Chamber to speak in these debates genuflect before the Government’s anti-farming policy, while hundreds of others hide themselves away.

From my local perspective, I can only assume that farmers across the constituency boundary in Labour North West Cambridgeshire simply will not be impacted. Except they will be: there are 203 farm holdings, with a further 306 in Huntingdon and 688 across Huntingdonshire. Guy is an arable farmer in Warboys, right on the constituency boundary with North West Cambridgeshire. His is a 600-acre arable farm producing wheat, barley, beans and sugar beet. Under the Government’s changes to APR and BPR, if Guy were to pass away before passing the farm to his children, the whole business would face a 20% tax bill, equal to £1.2 million, or £120,000 a year over 10 years. That is the entire surplus generated by the farm before any wages are drawn. The only way to fund such a bill would be to sell the land—over 20% of the farm. Once that land is gone, it is gone.

As the Prime Minister himself stated at the 2023 NFU conference:

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

That land will end up being sold through necessity to developers for houses or for solar farms, both of which, conveniently, are political priorities for this Government. Farming clearly is not.

Next week, thousands of farmers will be here in Westminster lobbying us, their representatives in this House, to tell us of the impact this policy will have on their livelihoods. The fact that the NFU has been forced into taking these steps—after unproductive discussions with the Secretary of State, whom many will feel they can no longer trust after his pledge that the Government had no plans to make changes to APR turned out to be a falsehood—is a damning indictment of Labour’s commitment to farmers. The Prime Minister claimed that this Labour Government:

“seeks a new relationship with the countryside and farming communities…A relationship based on respect and on genuine partnership.”

Whether it be in Huntingdon, Cambridgeshire or any of our rural heartlands, the Prime Minister is not delivering on that promise. The Prime Minister’s “new relationship” has quickly soured into a toxic one.

I hope that Labour MPs will be brave enough not only to face their constituents when they come to Westminster next week, but to lobby the Chancellor and the Secretary of State to ensure that our family farms are not taxed out of existence.

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[The Minister for Food Security and Rural Affairs (Daniel Zeichner)]

It is a pleasure to have the opportunity to wind up this debate and to add my gratitude to, and support for, farmers working hard up and down the country to feed the nation and protect our environment.

I welcome the shadow Ministers to their places on the Opposition Front Bench. I spent nearly five years sitting there, and I have to say it is better on this side. During that time, how rarely we ever got to discuss rural policy in the Chamber. It is interesting that it has taken a Labour Government to give Government time to allow Members to speak up for rural areas. What brilliant contributions we have had from Labour Members about the things that matter to rural areas. I shall mention some of the excellent speeches.

I was thrilled to hear the three maiden speeches. My hon. Friend the Member for Cannock Chase (Josh Newbury) spoke about a range of issues—[Interruption.] Of course farming is important, but Conservatives should remember that many other things are going on in rural areas. We heard about those from my hon. Friend, but we also heard about ghastly homophobic bullying, and I pay tribute to him for his brave comments. We heard from my hon. Friend the Member for Stirling and Strathallan (Chris Kane) about the extraordinary pedigree in his constituency, as well the wide range of issues, including film and television production, that help to create rural prosperity.

Closer to my part of the world, my hon. Friend the Member for Hemel Hempstead (David Taylor) described the beautiful countryside, but also talked of the challenges in housing and the food banks that scar our country. How much we should all work to ensure that food poverty is not faced in the future.

I cannot talk about all the speeches today, but I was pleased to hear the right hon. Member for East Hampshire (Damian Hinds) raising some other issues beyond the one that I will come to in a moment. We heard from my hon. Friend the Member for Doncaster East and the Isle of Axholme (Lee Pitcher) about flooding—a feature of many speeches. We heard a powerful speech from my hon. Friend the Member for Shrewsbury (Julia Buckley) about the positive things that the Labour Government are doing to address the real issues that we face.

We also heard from the Chair of the Select Committee, who is not in his place—[Interruption.] I am sorry—I missed him. I think he has moved. I always listen closely to his speeches and he made an important point when he said it is not about the figures. That is true, because the figures have been misrepresented, but he was right to say that there is a real fear out there—precisely because of the misrepresentations, not because of the figures.

We heard from my hon. Friend the Member for South Norfolk (Ben Goldsborough), who showed the difference between this side of the House and the other side. The future will be different for rural areas, food production and farming—[Interruption.] In a good way, because we are the future, they are the past. Then we went to my hon. Friend the Member for Whitehaven and Workington (Josh MacAlister), and we heard about how important it is to work collaboratively with people. We also heard about the important transition from the basic payments system towards the new way of working with and rewarding farmers effectively.

From my hon. Friend the Member for Macclesfield (Tim Roca) we heard about crime. It was interesting that it took a Labour Member, so deep into the debate, to talk about an issue that anyone who had actually been out on farms would have heard about—the constant thefts of GPS units. I sometimes wonder what world Conservative Members are living in—do they just read The Daily Telegraph all the time? Is that where they get their information?

My hon. Friend the Member for Bolton West (Phil Brickell) spoke about wonderful national parks and better access to the countryside, which is important for so many people; the Government will deliver on that. My hon. Friend the Member for Dunfermline and Dollar (Graeme Downie) spoke about how prosperity comes to rural areas. Sometimes it comes from filming and TV. There are many ways in which prosperity is earned in the countryside; this is the future. My hon. Friend the Member for Carlisle (Ms Minns) spoke about rural crime and PC Susan Holliday; I very much commend her for her work. My hon. Friend the Member for York Outer (Mr Charters) spoke about not just flooding but biosecurity, which is so important, and mental health, which we will come to in the Adjournment debate. I associate myself with the comments of the shadow Minister, the hon. Member for Keighley and Ilkley (Robbie Moore), about the important work that so many charities are doing.

My hon. Friend the Member for North East Hertfordshire (Chris Hinchliff) spoke about rural homelessness, which is an important topic. I was struck by how negative Opposition Members are about the prospect of building more homes. That is what matters to all our constituents. They need somewhere to live, not just somewhere to rent out to people at extortionate rates. My hon. Friend the Member for North West Cambridgeshire (Sam Carling) reminded the House about the extraordinary low levels of farmer confidence when the last Government were in power. The Conservatives bear some responsibility for that lack of confidence.

I was delighted to visit Hexham last week for the excellent conference. I say to the shadow Minister, it is striking how many people come up to me after each of these events and say, “You’re right. You’re right. You’re right.” Of course, against the huge peer pressure they are reluctant to say it, but they know that we are right. My hon. Friend the Member for Hexham (Joe Morris) is the first Labour MP for that area. The Conservatives might want to think about why that is. I think it is because they are looking to the past, not the future. We finished by hearing from my hon. Friend the Member for Rugby (John Slinger). How long it took in the debate to get to parish councils—the people closest to the ground.

Let me turn to the issue that the Opposition are consistently raising. I hear and understand what people are saying, but I waited in vain through the entire debate for an Opposition Member to address the real figures—the actual claims that have been made under APR. They are not a projection or a guess, but the figures published by the people in the Treasury who actually collect the tax. Those figures are of course the figures that we have been quoting: between 400 and 500 claims per year. With the changes in behaviour that are likely as a consequence of the policy—possibly, and quite likely, very good consequences—the numbers will be very small. That is not just what we have said; Paul Johnson from the Institute for Fiscal Studies has said it.

[Ben Obese-Jecty]

Will the Minister give way?

[Daniel Zeichner]

I will not, because I am afraid we are very close to the end. Opposition Members had four hours to get to the figures, but of course they would not want to engage with them because they tell a different story. We are confident that the policy can be made to work, but I am in discussion with the NFU and others on the figures so that they can understand how we arrived at the policy. We will continue to ensure that we engage properly with everybody. My hon. Friends have discovered that when they go and talk to people and explain it clearly, people are reassured. People should be reassuring rather than frightening.

Members raised issues around the devolved budgets. This year’s settlement has been carried forward in the same way as before, but what has changed is that it is no longer ringfenced for the devolved Administrations, so they can make the decisions. I would hope that the devolved Administrations would welcome that.

Let me finish on the positive news about the future that we are setting out for our food production system. I give credit to the previous Government for the agricultural transition that they began. The difference now is that we will turbocharge it and ensure that we transition in such a way that in the future we not only have strong food production in this country, but protect the environment and nature, with the stability of the biggest budget ever—over half a billion pounds for SFI this year. That would not have happened under the previous Government. I am confident that we will have a strong future for British farming in this country, provided that people do not spend the whole time talking it down.

Question put and agreed to.

Resolved,

That this House has considered rural affairs.