(1 month, 2 weeks ago)
Commons ChamberWe believe in a future in which farming thrives—one based on stability, growth and sustainability. Sadly, Labour’s policies jeopardise all three. Whether it is the disastrous last-minute overnight closure of the sustainable farming incentive, the relentless family death tax assault on family farms, or the negligence towards rural businesses, Labour’s agenda harms the heart of rural Britain, including my Kingswinford and South Staffordshire constituency.
Labour’s short-sightedness in deciding to stop accepting new applications for the sustainable farming incentive—with just half an hour’s notice given to the NFU despite the promise of six weeks’ notice—is a clear sign of its failure to understand the long-term needs of our farmers. While thousands of farmers were looking to the SFI for support, Labour has chosen short-term political convenience over long-term sustainability. Our farmers deserve consistency and trust in the future, not abrupt cuts to vital programmes. We will continue to back farmers.
Labour’s inheritance tax policies are a direct attack on the heart of family farms. The planned cuts to agricultural property relief and business property relief will make it impossible for farmers to pass on their livelihoods and their businesses—the farms that they have been farming for generations—to their children without facing huge tax burdens. According to the NFU, someone who inherits an average cereal farm from their parents faces 10 inheritance tax payments, with each one representing 1.5 times what they can expect to make in annual profits. They are running at a loss to fund the Government. That is serfdom, not farming.
My hon. Friend is making a great and impassioned speech. The Government are saying that one can avoid the tax, but one does not know who is going to die and when. In fact, the generations do not necessarily always occur 10 years apart, which could compound the tax even further, could it not?
My hon. Friend is absolutely right. Clearly, the people who are best placed to avoid paying the tax are the very people who ought to be paying and contributing: the mega landowners. For the average cereal farmer, however, who could face inheritance tax bills of 1.5 times the value of their annual profits, the only recourse will be to sell land or machinery. That is so blatantly obvious that the fact that the Government do not see it makes it difficult to assume that the policy is down to incompetence rather than a deliberate strategy to dismantle family farms, particularly when combined with the compulsory purchase plans set out by the Deputy Prime Minister this week.
Labour’s policies threaten the future of farming, rural businesses and the communities that rely on them. The sustainable farming incentive, inheritance tax reliefs, biosecurity, and the damage caused to our high streets by Labour’s Budget—in each of those areas, Labour’s mismanagement is letting down farmers, their families and our rural communities. Rural Britain can thrive when farmers are supported, businesses are protected and communities grow stronger. We will continue to fight for that future, and I call on the Government to change course before it is too late for our rural way of life. We will continue to fight for our farming communities, including mine in Kingswinford and South Staffordshire.