Rural Affairs

Jim Shannon Excerpts

Monday 11th November 2024 Commons Chamber

[Steve Reed]

The vast majority of farmers will not be affected by the changes to inheritance tax, and I implore the right hon. Gentleman not to underplay the damage caused by flooding. Many farms were absolutely devastated last year, and it will be immensely welcome that we have released £60 million to help farmers to deal with that problem, as well as setting up a flood resilience taskforce to ensure far better co-ordination between the centre and the agencies on the ground, to protect farmers from the devastation of flooding in years to come.

[Jim Shannon (Strangford) (DUP)]

rose—

[Steve Reed]

I said that I had taken my last intervention, but since it is the hon. Gentleman I am happy to give way.

[Jim Shannon]

I have been inundated with messages from farmers back home. I am a member of the Ulster Farmers’ Union, so I understand the issues clearly. The National Farmers Union here on the mainland has the same point of view. Every one of my neighbours will be impacted, and the Ulster Farmers’ Union estimates that almost every farmer in Northern Ireland will be impacted by the inheritance tax changes. Is the Secretary of State prepared to meet Ulster Farmers’ Union representatives to discuss this matter and understand much better—I say that respectfully—the issue of inheritance tax and what it means to family farms in Northern Ireland? It will destroy them.

[Steve Reed]

It is very important that we all listen to farmers and farmers’ representatives. Either I, or one of my ministerial colleagues, will make sure that we meet the representatives the hon. Gentleman mentions. I hope that I can allay some of those concerns if I am able to continue my speech, in which I will directly address the issues to which he referred.

As I was saying, flooding is just one of the many challenges that farmers have faced over the last past year. In recent weeks I have met farmers who have been hit by bluetongue in their herds, and I am sorry to say that we have the first recorded case of avian influenza this autumn. Biosecurity threats are real and their impacts even more so, which is why we are investing over £200 million to protect the nation from potential disease outbreaks, including by fixing the defences at our world-leading Weybridge facility that the Conservatives left to fall into disrepair.

--- Later in debate ---

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to speak in this debate. I live on our family farm and declare an interest as a member of the Ulster Farmers Union. As most Members are aware, I represent a rural constituency with a thriving agrifood sector. We grow it, we package it and we sell it. I dare say that most right hon. and hon. Members in this House will have sampled what Strangford has to offer. For instance, the potatoes grown in my constituency go all over Great Britain. I am pleased that those potatoes are a protected product; they were protected under EU law when we were in the EU, and they are protected now as well.

Lakeland Dairies supplies milk to London hotels and to aeroplanes. My neighbour’s farm supplies milk to that dairy, whose processing plant is a huge employer in my largest town, Newtownards. Willowbrook Foods and Mash Direct supply convenient prepacked goods to shops throughout the UK and further afield. Rich Sauces produces condiments that are shipped globally. All of those local business are doing our national business, and we are all the better for it. Sometimes it is better to promote those goods within the great United Kingdom of Great Britain and Northern Ireland together, so when the Minister sums up, will he give me some ideas about how that can be done? I know he is committed to that, but I am keen for Hansard to have it on the record.

The rural economy in Northern Ireland is our mainstay. Our focus in this place is not simply to allow it to survive, but to allow it to thrive further. All of those businesses have the potential to do more. Farming is the biggest industry in Northern Ireland, with 75% of land used for agriculture. There are some 25,000 farm businesses in Northern Ireland and some 48,000 jobs, which provide £1.7 billion of value added to the Northern Ireland economy, which is 3.5% of the total gross value added. With great respect to colleagues on the Conservative Benches and across the Chamber, the equivalent figure for the whole of the UK is 2%, so for us in Northern Ireland, what happens with agriculture is crucial and critical.

The gross output of agriculture in 2020 was £2.2 billon, while the gross output of food and drinks processing was £5.4 billion. The ripple effect is even greater, estimated at almost £5 billion when we account for the indirect contribution to a wide variety of sectors, including construction and hospitality.

My party will continue to ask for the remaining problems with the Northern Ireland protocol to be addressed. Again that is not the Minister’s direct responsibility, but I ask him to pass that on to the relevant Minister. The problems include the fact that because of state aid restrictions, businesses operating in primary agriculture and horticulture, fish processing, aquaculture and bio-based fuels are not eligible to apply for the agrifood investment initiative, which has been designed to support businesses in Northern Ireland who have additional shipping and transportation costs, and costs due to economy of scale, that make competition more difficult. I would really appreciate a response on that point. I like to be constructive and positive if I can in my comments. There are still businesses that cannot apply for the support due to the restrictions and that must be tackled. I look to the Minister to liaise with Cabinet colleagues to secure UK food security by securing agrifood in Northern Ireland.

The Minister knows that I respect him greatly, but I have to say that the Government have got the inheritance tax issue wrong. Shrinking farms by requiring them to sell 20% of the farm land to pay inheritance tax is not the way to promote food security or indeed to allow us to be self-sustaining. I repeat my calls for a rethink of this brutal tax reform, which actively harms not simply our farming community but anyone who buys British goods in the shop. Over the weekend a local estate agent told me—I am not making this up—that multiple farms have already requested a valuation to be carried out of the fields that they will not farm but keep to sell to pay the tax bills. There is already a knock-on effect.

The Secretary of State kindly made me an offer, and I will take him up on it. I have already contacted the Ulster Farmers’ Union to put the appointment in place. Northern Ireland leads the way in farming and the message is clear: release the chokehold and support us or our land will go for planning houses, and we will give up family farms treasured for centuries to pay the highway man. As one farmer said to me, “They aren’t coming for the family silver as we don’t have any. We only have the ability to grow food and they are taking that not from our family alone, but from every family in this United Kingdom.” That is wrong.