Agricultural Property Relief

Charlie Dewhirst Excerpts

Tuesday 28th January 2025 Westminster Hall

[Charlie Dewhirst (Bridlington and The Wolds) (Con)]

It is starting to feel a bit like groundhog day, because the Government are clearly not listening to the entire agricultural economy, community or experts. Let us go back to the beginning and have a brief history lesson. The hon. Member for Great Yarmouth (Rupert Lowe) just mentioned that the Government said prior to the election that they had no intention of changing APR. At the Budget, the Chancellor told us that this was a measure to prevent very wealthy individuals from buying up agricultural land to avoid inheritance tax. That was proven by analysis of the policy to be untrue, so there was a pivot and we were told that the measure was about raising revenue for public services in rural areas. Then the OBR said, “Well, actually, it’s not going to raise the revenue it says it’s going to raise,” so the whole thing has unravelled week after week.

We have heard from other hon. Members today about the issue of the APR analysis not taking into account the BPR effect, and what that does for tenant farmers and farmers who have used BPR as one vehicle to wrap everything into in the event of a death. We have farmers, agricultural organisations, supermarkets, tax experts—even The Observer this weekend—coming out against the policy. It is truly remarkable that the Government have managed to unite all those people against one single measure.

Today, quite significantly, we had analysis from the Agriculture and Horticulture Development Board. That is important, because the AHDB is a non-departmental Government body, not a lobbying organisation. Its analysis, using data from the Department for Environment, Food and Rural Affairs, the farm business survey and the Scottish Government, says that over 75% of farms will be affected by this measure—three times the amount that the flawed Treasury modelling said.

Most of those farms simply cannot afford a large inheritance tax bill because, as we all know, they do not have the income to pay it. The result will be the sale of land upon death, most likely to the wealthy individuals or businesses that this very policy was allegedly meant to deter. In turn, that will take land out of production, risking both our food security and local agricultural economies. My hon. Friend the Member for Chester South and Eddisbury (Aphra Brandreth) made a really important point about the impact on construction firms, feed merchants, hauliers, plumbers, electricians—all those who rely on a healthy farming sector.

The Government have ploughed on, with their head in the sand, but at what cost? There is a political cost —the decimation of Labour’s reputation in the countryside —but, more importantly, there is a human cost. This measure has placed enormous stress on family farms and, unforgivably, we have heard stories of suicide.

If the Chancellor can look again at non-doms, she can look again at this policy. If the Treasury is seeking to deter the wealthy from buying agricultural land, let us look at this again. If it is seeking to raise revenue, let us look at this again. The farmers are not going to back down, and we are not going to back down, so let us do the right thing, get round the table and find a better way forward.