Future of Farming

Jim Allister Excerpts

Wednesday 4th December 2024 Westminster Hall

[Sarah Smith (Hyndburn) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Roger. I grew up in a rural community as well, and I know how hard farmers work. I know how long it takes for generations to pass on the expertise involved in managing and cultivating the land. It is not like any normal apprenticeship or training programme; children learn over decades how to get the most out of the land, how to get the best yield and how to manage the ever-unpredictable set of circumstances that any year on a farm may bring.

However, I suggest that the last thing farmers need right now is the scaremongering that has been undertaken by the Opposition parties; they are protecting the vested interests of wealthy landowners. It is not just a minority of these people who are buying up the land; 50% of our farmland is being bought up by them, and they are on record saying that they are seeking it to avoid inheritance tax. That is the issue we are taking on. The average farmer in my constituency in Hyndburn has nothing to fear. When we look at the numbers in detail—unfortunately, I do not have the time to offer them—they show that those farmers are protected from the tax. The average farmer, even when we look at arable land values and some of the higher-value land, will not be impacted by the tax.

We have to acknowledge the challenges that some farmers face and the rural poverty in this country—we talk about it a lot and it is very real. But that is not the fault of the current policy; it is the result of decades of failure, and particularly of what happened in recent years under the previous Government, who failed to grasp how to support farmers to be more productive, so that they can earn the money they ought to be earning.

[Jim Allister (North Antrim) (TUV)]

The hon. Lady says that 50% of those affected are people who invest in land not for farming; is not the answer to put 40% inheritance tax on them and 0% on the real farmers?

[Sir Roger Gale (in the Chair)]

Order. I should have said—I did not, but I will now—that if any Member chooses to intervene, which they are quite entitled to do, I shall treat that as a speech, so they will not get called later in the debate.

--- Later in debate ---

[Jim Allister (North Antrim) (TUV)]

It is a pleasure to serve under your chairmanship, Sir Roger.

In Northern Ireland, land prices are in some cases twice as high as in other parts of the United Kingdom. The consequence of that is that the farm tax threshold will be reached more quickly and the burden will be even greater. But the real cruelty of the tax is this. In many cases, when one generation take over a farm, they naturally want to grow, expand and improve their productivity. Very often, during a lifetime, extra land will be bought. That extra land is bought with money on which tax has already been paid. So this is a double taxation: people buy land with profits they have made on which they have paid their tax, then when they die, the Government come looking again. That is so unfair, particularly when it is family farms being crucified by that tax.

I understand that there are people exploiting the market who are interested not in farming, but in tax relief, and own land for that purpose. The Government should hit them with all the might they can with the 40% inheritance tax, but exempt the genuine farmers—those who have a farm business number; those who are in receipt of direct payments; those who are genuine, active farmers. If the Government exempted them and went harder after those exploiting the system, they would probably have the same return at the end of it. Would that not be far more equitable than what is being proposed?