Clause 1

Debate between David Smith and Charlie Maynard

Monday 12th January 2026 Commons Chamber

[Charlie Maynard]

That is a very good question, but £100 million is 0.1% of £1.23 trillion. In materiality, it is important to think of it in that range. I do not think this is the way of going about it.

I ask the Government to consider voting in favour of amendment 3, which would remove the transition period in respect of the changes to APR and BPR and delay the implementation date so that changes would take effect for transfers made after 1 March 2027, and of our new clause 7, which would require the Secretary of State to undertake and publish an assessment of annually uprating the relief allowance for APR by the change in the value of agricultural land.

While awareness of the APR changes is very high among the farming community, I am concerned that awareness of the changes to BPR may not be as high among business owners in many sectors. Do the Government have any plans to raise awareness so that people know what is headed their way?

[David Smith (North Northumberland) (Lab)]

I welcome the Finance Bill. I will address clause 62 and schedule 12, which relate to APR and BPR. I have spoken on this subject several times, and did so back in November, because my constituency of North Northumberland has over 700 farm holdings, each of them growing the food that we eat and stewarding our land. As one farmer said to me recently:

“We have farmed this land since the mid-1800s—each generation investing in long-term decisions…which have benefited not just the farm, but the local area.”

I believe it is messages like that and the ability of farmers in North Northumberland to get this message across that were pivotal to bringing about these Government amendments.

The amendments will establish 100% relief up to £5 million for a couple, transferable between spouses, and a 50% relief thereafter. That will protect most family farms, with 85% of estates seeing no additional burden from April. I am indebted to the farmers of North Northumberland both for the way that they have engaged on the issue of inheritance tax and for the hard work they do day in, day out to put food on our dinner tables.