Agricultural and Business Property Relief

Debate between Harriet Cross and Graham Stuart

Tuesday 14th January 2025 Westminster Hall

[Graham Stuart]

The hon. Gentleman is right. The expert valuers who do this for a living have come out with different numbers, but they are all violently different from the Government’s assumptions. Even on the basis of the Government’s own figures, if I take Beverley and Holderness—as a rural constituency—it would be a farm a year. And of course, everyone is affected. They are all having to spend and bring advisers into the room. They are sitting there, as a small business that might be making less than £25,000 a year, and having to pay £1,000 an hour to get the expertise in the room to advise them on something that, sure, depending on the longevity of family members, may not have an impact for 15, 20 or—hopefully—30 years, but none the less they are spending that money now because of the uncertainty of this policy, which is very ill advised.

[Harriet Cross (Gordon and Buchan) (Con)]

I thank my right hon. Friend for bringing forward this debate, which is so important. Just this morning, I was at the meeting on food security, speaking to poultry farmers there, and they said that they are already taking decisions not to invest in new buildings, directly because they are now thinking of how they need to save for an APR bill. Of course, that has a knock-on effect on other businesses that will be the suppliers, and therefore we come into the BPR argument as well. Does he share my concerns that, if farmers cannot invest in their holdings, they will not be as profitable in future? It is a huge cycle—a self-fulfilling prophecy that will mean that more farms will be impacted down the line.

[Graham Stuart]

My hon. Friend is right. I say to the Minister that rather than looking at the issue through a fairness lens or an “attack wealth” lens, it must be in terms of incentives. Incentives are what drives behaviour, and behaviour is what drives wealth creation and security. If we come at it with some sort of A-level politics student’s approach, rather than one grounded in human behaviour and incentive, and get it wrong, we will see reduced investment from farm to farm and business to business.

If someone is not buying that new piece of planting machinery, they will not be investing in the training of their staff or they will not take on that extra employee who would have been brought on, because to justify expenditure they needed to invest in them, pay them more, and bring on more staff. All of that goes into reverse. I hope that as they come face to face with the realities of being responsible for the economy, Ministers will take that onboard and start to have a different philosophical approach in the way they do policy.