Farming and Inheritance Tax
George Freeman Excerpts(2 weeks, 6 days ago)
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George Freeman (Mid Norfolk) (Con)
I rise to speak on behalf of Mid Norfolk, a rural, agricultural, food-processing constituency that is reeling from this surprise and savage attack that was not in the Labour manifesto. I have no direct interest in farming, but I am the child of a farming family—my stepbrother runs that business. I worked on farms from the age of 15 to 21. I was going to go into farm management, and I think I still have a place at Harper Adams agricultural college if this career does not work out. My first job was with the NFU, working here in Parliament. I was a director of Elsoms Seeds and I was proud as a Minister to lead the agritech industrial strategy. I am chair of the all-party parliamentary group on science and technology in agriculture.
This is a hugely important strategic industry to the UK. It is key to our food security—now, gratifyingly, a Government priority—and it is completely key to the world’s ability to feed 9 billion mouths. We are a great agricultural research and technology economy, and the world is hungry for our innovations. Agriculture is also completely key to net zero. Agriculture and transport are the two dirtiest industries, and agriculture is moving more quickly than any, pioneering regenerative systems of agriculture and carbon-capturing systems. Those innovations are being driven by a new generation of young UK farmers, who are different from the post-war generation. They take their responsibilities to the broader planet and regenerative agriculture seriously.
At the same time as agriculture being a key strategic industry, farmers look after our countryside and keep our rural economy healthy. All of those are achieved in the most extraordinary way, in an industry not dominated by big companies. This industry is made up of millions of small businesses. Moreover, they exist in the most extraordinary business climate. They operate on incredibly expensive assets—the land—which they never seek to monetise, as colleagues have pointed out, in an industry in which their costs are fixed. They invest in all their costs up front and wait hopefully for a price for their product, which is subject to the vagaries of the weather and of climate change. Most business people looking at that business model would say, “That is not a business I want to be in.” Why do our family farmers do it? They do it because it is a way of life and because it is deeply embedded in the values of their families, their countryside and their communities. It is about stewardship, and it makes it all the more remarkable that this Government have decided to attack that very bit of the agricultural economy.
What are the aims of this policy? What is the impact of this policy? How should this House and those MPs who understand the rural economy respond? If the Government had said, “Our aim is to close the loophole of land asset speculators enjoying the legitimate family tax relief that the Conservatives put in place in 1984,” I probably would have supported them. If they had said, “We want to stop international hedge funds enjoying a tax relief designed to protect family farms,” I suspect many of us would have supported them. If they had said, “We want to support new entrants to the industry to promote diversified, regenerative agriculture, to increase investment and to promote the vibrant rural economy,” I probably would have supported them. That, however, is not the aim of this policy. The truth is that we do not know its aim, because the policy was never in the Government’s manifesto and it is not from DEFRA. It is a Treasury policy that has been landed on unwitting Ministers, who are now having to carry the can. We know it is anti-small business, anti-family business and anti the rural economy.
The former Labour adviser, John McTernan, let the cat out of the bag. He said that Labour has waited a long time to seek revenge for the Tory attacks on the miners, and it was going to attack the farming community now—[Interruption.] That is exactly what he said. The impact of the policy is clear; we only have to read the CLA and NFU briefings. I have met Gavin Lane, Phil and Sophie Ellis, Oliver Munday and Nigel Stangroom. Most of our average family farms will have to pay tax bills of £400,000, £500,000 or £600,000. Where will they get the money, when the businesses do not generate the profits to pay those bills? They will all have to sell land, but who will buy it? It will not be their neighbour, because they will be selling land, too. I fear that this policy was designed in the Treasury with the support of bits of the Department for Energy Security and Net Zero and DEFRA. The people hanging over Mid Norfolk waiting to buy the land are the big solar developers and the big mass housing developers.
George Freeman
I will not, as time is short and colleagues want to speak. This policy is a prescription for the industrialisation of the countryside, cooked up in the Treasury in the summer when nobody was looking. It will lead to family farms being broken up and sold, farm investment falling and young farmers leaving, with a major economic impact and tertiary impacts in my part of the world. Those industries that support farming are already seeing the effects. The response of rural MPs should be to move fast behind the hon. Member for Penrith and Solway (Markus Campbell-Savours) and make it clear to the Treasury that it needs to adjust the mechanisms, change the thresholds and change this policy, unless Labour wants to be the party of rural devastation.
Winter Fuel Payment
George Freeman Excerpts(3 months, 2 weeks ago)
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George Freeman (Mid Norfolk) (Con)
Mid Norfolk is a profoundly rural constituency, with 130 villages and four towns, and in that very rural constituency, as with all rural areas in this country, people are paying a surcharge because of energy costs and because of rurality. There will be colder weather, and many of my houses are not on the gas grid, while rural areas traditionally have lower incomes and we have an elderly population.
The Treasury, very helpfully—it is a shame Ministers did not read it—did a piece of work last year looking at the risks of rural poverty and the higher risk of rural areas falling into real poverty. The Treasury’s own figures showed that the average household at risk of poverty in rural areas needs an extra £800; or in layman’s terms, there is a two and a half times—or 250%—higher risk of rural houses falling into rural poverty. So I find it completely extraordinary that Labour, which in government professes to care about poverty and berated my party when in government about the risks of rural poverty and of pensioner poverty, has decided as their first act to punish people in rural areas.
It is because of those rural risks that, earlier this year, I and a number of colleagues set up a fair funding alliance, supported by Action with Communities in Rural England, the Countryside Alliance and rural bodies. Higher fuel and energy prices are hitting rural areas, and we would have hoped that this Government might have listened. I am proud that the Conservative party in government upgraded pensions, protected the triple lock and took 200,000 pensioners out of poverty.
Ben Maguire
The former Member for Thornbury and Yate introduced the triple lock, which was actually a Liberal Democrat policy. Would the hon. Member care to correct the record on that point?
George Freeman
It was my good friend the now noble Lord Willetts in a coalition Government with the Liberal Democrats, and I will happily debate with the hon. Member some of the brave decisions we took.
The point is that this party, the Conservative party, protected pensioners, protected the triple lock and lifted 200,000 people out of poverty, but we see this Labour Government make this decision. The Minister put it very clearly earlier. This is an attack on people who own their own homes, people who have retired in rural areas and those just over the threshold, and in Labour world they are millionaires. This will not be forgotten by people in my constituency, the low-income rural pensioners who have saved up to be able to afford their own home and are now being clobbered. It is unfair, it is unjust, it is unjustifiable, it is unprecedented, and I urge and beg Ministers to think again.