Rural Communities

Debate between Cameron Thomas and Sarah Dyke

Wednesday 7th January 2026 Commons Chamber

[Sarah Dyke]

The Liberal Democrats have set out a number of different policies to help shape that £1 billion investment. Being part of the customs union would certainly be part of that, and it would bring in billions extra, as the hon. Gentleman well knows. There is much more we can do.

Nothing has done more to increase the cost of living and of farming and to reduce farm incomes than the Conservatives’ botched Brexit, which made it more expensive and burdensome for British farmers and fishers to export to their main markets in the EU, beleaguering their workforces and undermining their protections for animal welfare and the environment. The Conservative Government set a dangerous precedent for future trade agreements, given what they negotiated and how they went about it. They stripped away parliamentary scrutiny and forced terrible deals through, which gave unfair advantage to imports from countries with poorer standards over the higher-quality standards of British farmers.

[Cameron Thomas (Tewkesbury) (LD)]

We have heard an awful lot of criticism of the Government’s policies on farming from the Conservatives, but very little mention of the trade deals that they secured with Australia and New Zealand, which have made things so much harder for farmers—we will undoubtedly hear a lot about those from Labour Members. Will my hon. Friend join me in asking the Government to commit to rejecting chlorinated chicken and hormone-treated beef from the United States?

[Sarah Dyke]

As my hon. Friend would expect, I totally agree with him.

The Liberal Democrats want to ensure that British farmers operate on a level playing field and can succeed. That is why last year I introduced the Dairy Products and Dairy Farming Bill. Farm-gate milk prices have plummeted over the past few months; now, cereal prices are also under serious pressure. The Liberal Democrats are clear: we need fairness in the supply chain. When farming businesses fail, there is a knock-on impact on local hospitality—pubs, cafés, restaurants and hotels.

Somerset is a tourism region. It supports nearly 10% of all jobs and contributes more than £1 billion to the regional economy. Many of the fantastic hospitality businesses in Glastonbury and Somerton are under immense pressure as they face huge rates increases from April. Miranda contacted me today. She manages the White Hart pub in Castle Cary, and faces her rateable value going from around £19,000 a year to over £30,000 a year. Meanwhile, the British Institute of Innkeeping states that only one in three pubs are profitable, and warns that that could drop to one in 10 by April.

The hospitality sector already faces £4.5 billion in additional taxes due to increased national insurance contributions in the 2024 Budget. The Liberal Democrats have been calling for an emergency 5% VAT cut for hospitality, accommodation and attraction businesses until April 2027, funded by a new windfall tax on big banks. Combined with our policy to reduce people’s energy bills by removing the main renewables levy, we could put £270 back into people’s pockets, making it more affordable for them to heat their home, and allowing them to spend more on occasional extras. That would help to drive economic growth in rural areas, restore our high streets, and give the country a much-needed morale boost. It would also help rural areas to grow the economy.