(2 days, 10 hours ago)
Commons ChamberFirst, I commend the maiden speakers in the House today. There have been some excellent maiden speeches. I particularly liked the reference by the hon. Member for Cannock Chase (Josh Newbury) to Tolkien, of whom I am a big fan, but today we are talking less about the bounteousness of the Hobbit’s Shire and more about needing a wizard to figure out how the Budget is good for farmers.
Like many Members across the House representing rural areas, I have received significant correspondence from those on family farms, and from industry representatives such as the National Farmers Union of Scotland. The changes to inheritance tax and agricultural property relief have sent a wave of despair through the farming community, given the impact on family farms. Labour Members have referred to farmers having time to do financial planning, but significant sums of money will have to be put aside; if we were talking about pensions, we would say that people needed 10, 15 or 20 years to change their financial plans in that way.
The NFUS has given the example of a family farm worth £4 million. The vast majority of that value is tied up in farm buildings, machinery and livestock. A family member inheriting the farm could be liable for a £600,000 tax bill—a demand enforceable by His Majesty’s Revenue and Customs, with £60,000 due within six months. Let us be clear that for many people, the only way to cover that would be to sell off buildings, machinery or stock. That may inherently make the farm financially unviable and put the whole business at risk of failure.
A farm owner may choose to protect their family farm assets by selling off tenanted land, creating huge financial uncertainty for tenant farmers, and giving many cause to question whether it is worth continuing in farming. Food security is national security, but these measures are increasing uncertainty and insecurity for hard-working farming families—and in most farms, the whole family is working it together. A constituent wrote to me to say that APR is not a loophole, as has been suggested, but a targeted and necessary relief designed to support multi-generational businesses, food production and economic growth.
A second issue of real significance to my constituency is whisky tax. That might not immediately jump to mind when we think about rural affairs, but the vast majority of the 48 distilleries in my constituency are in rural areas. The supply chain for those whisky distilleries is in rural areas; these are rural jobs. If the increase in whisky tax reduces sales, that reduces investment. Those 48 distilleries range from big corporates such as Diageo through to small independents, and even a community-run distillery; I recently had the pleasure of being at its opening. The supply chain includes farmers producing grains—this is a double whammy for farmers in my constituency, as many of them produce grain for the distilleries—as well as mechanical engineers, process engineers, hauliers, maltsters, plumbers, joiners, gardeners, tour guides and those working in retail and hospitality. All those jobs are in rural areas, and they are a lifeline source of well-paid, good employment for many rural communities in Moray West, Nairn and Strathspey.
A third impact that I want to touch on is forestry. Here I can maybe throw the Minister a bone, having had a bit of a go about the first two issues. On forestry, I think we have a lot in common. We want to see more housing built; I am very supportive of that. I also support the need to see progress on sustainable aviation fuel. Both of those rely on significant investment in forestry. There is a serious issue about the availability of new wood beyond 2035, and if we are to achieve progress on sustainable aviation fuel and house building, that needs to be in the balance. Forestry needs to be in balance with the rest of our agricultural land needs. I urge the Minister to commit to a statement on the future of forestry beyond 2035, in order to support those two objectives, which, as I say, I believe we share.