Rural Affairs
Harriet Cross Excerpts(1 week, 6 days ago)
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Steve Reed
My hon. Friend is a great champion for his community. I am of course more than happy to meet him and people from his community to discuss those important issues.
The measures in the Budget will enable us to build a stronger, more sustainable future for British agriculture and put in place our new deal for farmers, which includes making the supply chain fairer so that producers are no longer forced to sell their food below the price of production; speeding up planning decisions to help farmers to diversify into new forms of income; seeking a new veterinary agreement—
Steve Reed
If the hon. Lady will forgive me, I want to make a little progress.
The new deal for farmers includes seeking a new veterinary agreement with the EU to tear down the export barriers that the previous Government erected in the first place; backing British produce by using the Government’s purchasing power to buy British; and protecting our farmers from ever again being undercut by low welfare and low standards in trade deals like the disastrous one the previous Government signed with Australia and New Zealand.
The House is aware that the Government inherited a catastrophic £22 billion black hole in the nation’s finances, meaning we have had to take tough decisions on tax, welfare and spending to protect the payslips of working people. This has required reforms to agricultural property relief. I recognise that many farmers are feeling anxious about the changes; I urge them not to believe every alarming claim or headline and I reassure them that the Government are listening to them. We are committed to ensuring the future of family farms. The vast majority of farmers will not be affected at all by the changes. Let us look at the detail.
Steve Reed
If the hon. Gentleman will give me a little time, it is important that I make these points.
Currently, 73% of agricultural property relief claims are less than £1 million. An individual farm owner can pass on up to £1.5 million and a couple can pass on up to £3 million between them to a direct descendant, free of inheritance tax. If a couple who own a farm want to pass it on to a younger relative and one partner predeceases the other, each of them has a £1 million APR threshold that they can pass on. Add those together and that is £2 million, plus the £1 million that a couple with a property can pass on to their children. For most people, that is an effective threshold of up to £3 million to pass on without incurring inheritance tax. Any liability beyond that will be charged at only half the standard inheritance tax rate and payment can be phased over 10 years to make it more affordable. Farmers will be able to pass down their family farm to future generations, just as they always have done.
Steve Reed
They are from the Treasury and His Majesty’s Revenue and Customs.
Under the previous system, 40% of the value of agricultural property relief went to just 7% of claimants. That is not fair and it is not sustainable. Our reforms will put a stop to wealthy individuals buying up agricultural land to avoid inheritance tax and, in the process of doing that, pricing younger farmers out of buying land for themselves and for their families. As a Farmers Weekly correspondent pointed out,
“prices have been artificially inflated by non-agricultural buyers purchasing land for inheritance tax purposes”,
thereby making it hard for young farmers to set up a family farm. That is correct.
The reforms will protect family farms by closing the loopholes, but they will also help to provide funding for the public services on which families in rural and farming communities rely just as much as anyone else. When Opposition Members say that they would go back to the unfair old system, they also need to tell us which part of the new NHS investment they would cut to pay for it. Like everyone else, farmers and rural communities need a better NHS, affordable housing, good local schools and reliable public transport.
The last Government’s economic failure left Britain with a flatlining economy, broken public services and the worst decade for wage growth since the great depression of the 1930s. Poor public transport meant that people could not get to work, the GP or the hospital when they needed to. Home ownership was out of reach for too many in rural areas. Too few new homes were built, and even fewer that were genuinely affordable. Digital connectivity in rural areas lags behind connectivity in urban areas.
We have to kick-start the economy to build the public services that rural communities need, and to help with that we have secured the biggest budget for sustainable farming and nature in our country’s history. It will help to change farming practices so that we can clean up our rivers, lakes and seas, which the last Government left in such a filthy, polluted state.
Harriet Cross (Gordon and Buchan) (Con)
In my constituency and across the country, family farmers are the custodians of our countryside. For generations, they have contributed to our nation’s food security and land stewardship, provided employment, supported local supply chains, and brought rural communities together. The changes to agricultural property relief—this family farm tax—is the wrong tax aimed at the wrong targets. As we have heard many times, farms, while asset rich, are cash poor. Most farmers do not have hundreds of thousands of pounds of cash available to pay an inheritance tax bill, so they will have to sell the very assets that they use to farm to raise capital.
The Minister for Food Security and Rural Affairs (Daniel Zeichner)
indicated dissent.
Harriet Cross
The Minister shakes his head, and he has been shaking his head throughout the debate. The issue is this: the Government are not listening to farmers the length and breadth of the country. They are not listening to the National Farmers Union, and they are not listening to the CLA. People who speak for the farming community, people who represent the farming community, are not being listened to, and that is why they are in this position. It does not matter, it seems, how much we say to the Minister, or how much we say what our constituents are saying. The Government are not listening, and they are not willing to listen.
Last Friday, I met members of NFU Scotland’s north-east region. Perhaps the Minister will not listen to this either, but they told me about some matters that they had been concerned about. One was a farmer whose father, aged 90, still owns the land and still farms it. He said to me, “I will have to sell. I thought I had a lifetime of farming ahead of me, but now it turns out that I only have what is left of my father's lifetime.” He did not sound angry; he just sounded broken. Another put it like this: “It is just a waste. Do they”—the Government—“not understand the resource that we have invested into family farms for generations—the skills, health and safety, teaching about husbandry and agronomy? We invest so much more than just money into farms, and this will all be lost. It is just such a waste.”
In their manifesto the Government said that
“food security is national security.”
They reiterated that last week, adding:
“The Government’s commitment to supporting farmers and rural communities is unwavering.”—[Official Report, 4 November 2024; Vol. 756, c. 23.]
However, in the few months since the election, the Government have done nothing to justify those claims. Granting solar farms on prime land, taxing fertiliser, removing the ringfence from the agricultural budgets for Scotland, Wales and Northern Ireland, and making changes to inheritance tax will impact family farms for generations. The Government have missed a key point: it is not words that impress or satisfy our farming communities; it is action, and so far this Government’s actions have let our farmers down.
Budget: Implications for Farming Communities
Harriet Cross Excerpts(2 weeks, 6 days ago)
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Daniel Zeichner
The hon. Gentleman well knows the financial state of the country that we inherited. Difficult decisions had to be made.
Harriet Cross (Gordon and Buchan) (Con)
The average farm in Aberdeenshire is 490 acres, and average values are about £5,000 an acre for bare land. Once the farmhouse, building machinery and livestock are added, that is suddenly well over the inheritance tax threshold and have a huge IHT bill of hundreds of thousands of pounds coming your way. DEFRA figures show that 19% of farms do not make a profit and 24% make less than £25,000, so does the Minister suggest that farmers sell the land they use to grow the food, sell the machinery they use to harvest the food or sell the buildings they use to store the food, in order to pay this bill?
Daniel Zeichner
The hon. Lady will know that farming policy is different in Scotland, but on the tax issues, which are UK-wide, that is absolutely right, but I would suggest that she gets her farmers to look in detail at these proposals, and what they will find is the vast majority—[Interruption.] When they look at them in detail, they will find that the vast majority will be absolutely fine.
Oral Answers to Questions
Harriet Cross Excerpts(2 months, 1 week ago)
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Steve Reed
As I have already said, we are looking to strengthen, not weaken the regulation. The regulation was inappropriate. It is not just the regulation itself, but the lack of resources the regulators have had. That is why the Water (Special Measures) Bill we are introducing will allow the regulators to claw back resources from water companies that are successfully prosecuted, so that they have the firepower to prosecute further wrongdoing by those water companies or others responsible for it.
Harriet Cross (Gordon and Buchan) (Con)
John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)
The Secretary of State for Environment, Food and Rural Affairs (Steve Reed)
The Government will restore stability and confidence in the sector by introducing a new deal for farmers to boost rural economic growth and strengthen food security alongside nature’s recovery. The Government are currently conducting a spending review, which will conclude in October. Departmental budgets, including spending on farming, will be confirmed through this process.
Harriet Cross
The Labour party manifesto rightly stated that the Labour party
“recognises that food security is national security.”
I agree, but those words must be matched with actions. We have already asked today about future budgets, but have not heard any answers. Will the Secretary of State confirm that there will be no real-terms cuts to the agriculture budget?
Steve Reed
As the hon. Member will know, there is a spending review process going on, which will culminate with announcements in the Budget. That is the point at which all of that will be made clear and apparent.
I would gently remind the hon. Member that it was her Government who underspent the farming budget by £130 million in the previous financial year. That money should have been in the pockets of farmers, who desperately need it for the work they are doing to provide the food we want to eat and to help nature’s recovery, yet that Government were too incompetent to get it out the door. This Government will make sure that the money allocated to farmers is handed over to farmers so that they are able to use it for the purposes for which it is intended.
Planning, the Green Belt and Rural Affairs
Harriet Cross Excerpts(4 months, 1 week ago)
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Harriet Cross (Gordon and Buchan) (Con)
Thank you for calling me to speak, Mr Deputy Speaker. It is an honour to follow the hon. Member for Cramlington and Killingworth (Emma Foody)—she is clearly very proud of her roots and of what she has achieved in the area. It is lovely to follow another girl from the north-east—although in my case it is the north-east of Scotland.
It is an incredible honour to be elected to this place to serve the great people of Gordon and Buchan. Having moved homes many times in my lifetime—more than I can remember—from Yorkshire to Ireland to Scotland and many times in between, I have seen my fair share of houses, but I can definitely say that this one will take the most getting used to. As Members are all aware, you are not a true Scottish MP if you do not proclaim that your constituency is the most beautiful, so: from the beaches of Balmedie and Newburgh through the fertile farmland of Formartine, Garioch, Huntly and Turriff, to the heights of the Correen hills and the Bennachie range, Gordon and Buchan has it all. I can tell Members in all seriousness that it really is the most beautiful constituency, and not just in Scotland but in the whole of the UK.
Those of us who are blessed to live north of the Watford gap know that there is a direct correlation between how far north you get and being approachable and determined, having a dry sense of humour and being great company. As such, I am also delighted to say that I am the Conservative Member with the most northerly constituency.
First, I must reflect on my predecessors, beginning with the most recent Conservative Members from the two former constituencies that have now been combined to make Gordon and Buchan: Colin Clark in Gordon and David Duguid in Banff and Buchan. Both Colin and David were embedded in our rural communities. They are unwavering champions for our region, in particular being loud, constructive and prominent voices for our farmers, fishermen and distilleries, and for the energy sector. I also want to take the opportunity to wish David Duguid and his family all the very best in his ongoing recovery.
It would be wrong of me not to mention Malcolm Bruce, now Baron Bruce of Bennachie, who served Gordon for 22 years up until 2015. It is a show of the mark that he left on the area that his name was mentioned to me on the doorsteps many times during this election campaign, always very fondly. Finally, the former SNP Member for Gordon and my immediate predecessor, Richard Thomson, has long served the people of Gordon and Buchan and of Aberdeenshire, both in this place and on Aberdeenshire council as both leader and opposition leader. While he and I will not pretend that we see eye to eye on the means, we both agree that we want the very best for our special corner of Aberdeenshire, now and in the future.
Much was achieved for Gordon and Buchan and the north-east of Scotland in the last Parliament. I wish to draw attention to the north-east investment zone, an £80 million investment in our region made as part of the last Conservative Government’s levelling-up agenda. It is a real investment in our area’s growth, development and potential—an investment in our future. The north-east shines with energy in every way. Indeed, the energy sector is what first brought my family to Inverurie, the largest town in Gordon and Buchan, 50 years ago this year. My grandfather, having been medically discharged from the Navy, never lost his love of service or the sea, so he channelled that love into creating in Aberdeen the International Association for Safety and Survival Training, whose courses are still used today by each and every offshore worker in our oil and gas sector. I am sure that if he were still here today he could give me some sound advice on surviving in this place.
The energy sector powers Aberdeenshire, from direct jobs and high-skilled employment to the associated services and hospitality sectors that rely on it. To the people of Gordon and Buchan and the north-east of Scotland, the debate on the future of the oil and gas sector is not really about energy security, markets or net zero; it is about our jobs and our livelihoods. It is about knowing that we have secure employment for the years to come and that our children will not have to move away to start their career, or that the bottom will not fall out of our local economy. I cannot imagine that any hon. Member would sit here and allow their constituency’s key employment sector to be run down or conceded, and I will not do that either.
Our rural communities are the beating heart of Gordon and Buchan. Indeed, three quarters of the land in the constituency is classed as agricultural, a fifth is forestry and only 2% is thought of as built up. If someone drops a pin on a map, it is more likely to land in a field or forest than on a house. Before being elected, I worked as a rural surveyor, meeting farmers across Aberdeenshire, many of whom I am now proud to call my constituents. As intimidating as it might be being on the Opposition side looking across at the Government Benches, that is nothing compared with sitting at a farmhouse table trying to tell farming clients that no, their farm is not worth three times what they think it is worth or that their worse-for-wear heifer will not get top figures at next week’s sale.
I am delighted that my first contribution in the House is in this rural affairs debate. I know, and my constituents know, that rural living is unique, rewarding and, in my opinion, far superior to urban life. We also know that it is not all about green fields, welly boots and labradors, idyllic as that might sound. The reality is locals waiting in villages such as Fyvie, Auchleven and New Deer for the only bus of the day, which never arrives. It is the only healthcare facilities for many miles closing down. It is children having to move away to build their career. It is poor-quality, unsuitable roads. Or it is the lack of housing, or houses without gas, poor broadband and no phone coverage.
We in the UK quite rightly hold our rural landscapes up in lights: our green and pleasant lands, which bring ecological benefits as well as much-needed tourism to remote areas. But rural communities are not there solely to be an escape or plaything for others; they are where my constituents make their homes and livelihoods, and where they grow up and grow old. We need tailored policies for our rural communities that help industries such as farming and food and drink producers, and the numerous small and medium-sized enterprises across Gordon and Buchan that bring so much not just to the immediate area but to the region and to the UK as a whole. Yes, we are less densely populated and yes, understandably, we have less choice in services and on where to find work, but we have no less aspiration.
I am proud to have been sent here by the people of Gordon and Buchan to represent them, to fight for them, and always to keep their interests at the top of the agenda.