Rural Affairs
Debate between Harriet Cross and Steve Reed(1 month, 1 week 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.
Oral Answers to Questions
Debate between Harriet Cross and Steve Reed(3 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)
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.