Inheritance Tax Relief: Farms

Joe Robertson Excerpts

Monday 10th February 2025 Westminster Hall

[Vikki Slade (Mid Dorset and North Poole) (LD)]

It is a pleasure to serve under your chairmanship, Dr Murrison. Last week, I was invited to Goodens farm in Stoborough in my constituency. Phil Randall is a third-generation farmer, and he hosted us with other Purbeck dairy, beef and arable farmers. I saw the investment he has made in his equipment, buildings and livestock. I was really impressed with the innovations he has already put in place to protect him and his business from the steep increases in fertiliser costs after the invasion of Ukraine, as well as the investment he has made in the care of his dairy and beef cows to improve their welfare and his yield. I was so excited to meet his newest calf, which was born by caesarean section and nurtured through its early days by Phil and his children.

I was shocked when Phil told me that his farm is run entirely by him, his wife, his children and two members of staff, which gives me the impression that there is no money left to pay anybody else on the farm. It was really clear that Phil and the other Purbeck farmers, including Ian, Chris, Nicki and Catherine, care deeply about their farms. However, they also care about the wider sector, protecting the countryside, ensuring food security and making sure that they have a sustainable business. One farmer shared with me that the margins on his farm are just 1%. I can think of no other industry in which a business would carry on with a profit margin of 1%.

The farmers are deeply angry about what happened last year, but they have now come to the conclusion that it is unlikely the Chancellor is going to make a U-turn, so they asked me to convey their ideas of what they want from the Government. They want a consultation with them about how these changes can be modified. They recognise that there are people buying up land in the countryside who are not producing food and are not supporting the environmental aims of the Government to mitigate climate change.

The farmers support the introduction of a family farm tax, as proposed by the Liberal Democrats, and the transfer of the inheritance tax liability to the point of sale of assets, not inheritance. They want a temporary relief to create time for estate planning, not just for elderly farmers, but for anyone who dies unexpectedly in the next three to four years, as they noted that farming is an incredibly dangerous profession at any age. They want to see institutional investors forced to be more transparent, having raised concerns about wealth being hidden in their land. They want APR and BPR to be separated and to have separate thresholds.

[Joe Robertson (Isle of Wight East) (Con)]

The hon. Lady spoke about the pessimism that the Government will U-turn on this, but does she share my optimism that they may well U-turn if enough of their Back Benchers make a point?

[Vikki Slade]

That is not really for me to say, but I hope that they are listening. The important thing is that there is time. We have until April next year, and that is why the consultation and listening to all these people is so important.

I saw just how much was being invested in tractors, muck-spreaders, equipment to cut and bale the grass, milking equipment and water storage systems. If we want our farms to be more efficient and more profitable, it is ridiculous to tax farmers on investments in making their farms work better. So I implore the Minister—this tax is going to harm the countryside and food security, and if we end up increasing imports it will also have negative impacts on climate change and animal welfare. It is so important that the Minister hears our message—that of Opposition Members, and the people in the Gallery and in the tractors outside—and I hope that the Minister takes this opportunity to at least reform if not scrap this tax.