Farming and Inheritance Tax

Josh Fenton-Glynn Excerpts

Wednesday 4th December 2024 Commons Chamber

[Andy MacNae (Rossendale and Darwen) (Lab)]

As someone who lives on a farm, which is surrounded by farms, and whose family has farmed, and diversified, for generations, I add my voice to all those who have paid tribute to farmers for the crucial role they play in our economy. Many other hon. Members have said it more eloquently than I can, but let us all recognise the vital role of farms in our economy.

In common with colleagues, I met with farmers in the post-Budget period. Frankly, I was expecting a pretty hard time and there were some robust discussions, but they were also civil, constructive, informative and understanding. I pay tribute to the farmers and the NFU representatives who took that approach to the discussions. What most surprised me was how quickly the discussions immediately pivoted to the sense of anger, abandonment and betrayal that arose from the past 14 years, which have decimated the industry.

Fellow Members have described in detail—the hon. Member for Westmorland and Lonsdale (Tim Farron) described the situation particularly well—the betrayal of Brexit, the spiralling energy and feed prices, the spiralling land costs, and the terrible trade deals that opened the doors to poor-quality imports, which undermined the very farming markets that Conservative Members claim to value. As we have heard already, that dire management resulted in over 12,000 farms and agribusinesses going out of business since 2010. That is a terrible, shocking, shameful legacy. For Conservative Members to now present themselves as the champions of farmers is outrageous. They have used the word “arrogance”, but that is what they have displayed—a refusal to reference, understand or learn from their own history and failings.

[Josh Fenton-Glynn (Calder Valley) (Lab)]

Conservative Members talk about being friends of the farmers but for the past 14 years they were not. It shows how little they care that only 18% of their parliamentary party is present for a debate that they have called—[Interruption.] Only 21 out of 120 Conservative Members.

[Andy MacNae]

It is amazing; one of my colleagues talked about “the green fields opposite” in reference to the empty Conservative Benches.

Given that background, it is no surprise that farmers are angry, worried and feeling vulnerable. I associate myself with the remarks made by the hon. Member for Tiverton and Minehead (Rachel Gilmour), who called for calm and sense in the debate. Emotive language, designed to sow fear and cause concern is irresponsible at the very least, so let us try to keep to the facts and keep things calm and reasonable.

The focus of Conservative Members seems to be family farms, but the phrase “family farm tax” immediately creates a sense of fear and targeting, which is completely wrong. With some sensible tax planning, £3 million of assets can be exempt. Many speeches have glanced over the importance of gifting rights. Let us take the scenario of a family farm, in its truest sense, that is to be passed between generations. Surely, gifting rights are a massive opportunity to avoid all inheritance tax and remove the sense of fear that Conservative Members are trying to create. Most of the rest of the country has to do that simple estate planning by default.

--- Later in debate ---

[Sir Gavin Williamson (Stone, Great Wyrley and Penkridge) (Con)]

Staffordshire is the largest dairy-producing county in the midlands and across the county we have 9,600 people working on farms. Four hundred and thirty-two of those farms are in my constituency, and they are an incredibly important part of the fabric of the area. So many of my constituents who listened to the Budget were genuinely shocked. They were shocked because they took it at face value when the Labour party said that there would not be any changes in inheritance tax for agricultural land. They listened and they believed.

I know—I always like to believe the very best of people—that the Ministers on the Front Bench from the Department for Environment, Food and Rural Affairs would have fought for that position, but this policy was a diktat from the Treasury. In my experience, there is a tendency for the Treasury to do that to many Departments. That diktat has meant a change in position, and one that has a severe impact on many people’s lives. If there were a factory in Staffordshire employing 9,600 people and its future viability was in jeopardy, Ministers would be rallying to its support. Members across the House would be saying, “Let us do something to save these jobs and save these livelihoods.” But that is not the case here.

[Josh Fenton-Glynn]

Will the right hon. Member give way?

[Sir Gavin Williamson]

I will, of course, give the hon. Gentleman the opportunity to burnish his potential to be that Parliamentary Private Secretary in DEFRA that I know he is so desperate for on any occasion.

[Josh Fenton-Glynn]

Why is the right hon. Member so dismissive of DEFRA, which is a fine Department whose work those of us who believe in the countryside value? I wonder why he was not so loud when 875 agribusinesses in his region closed in the last 14 years.

[Sir Gavin Williamson]

All the while I have been a Member of Parliament, I have fought for my farmers, and I will continue to do so.

I invite the Minister for Food Security and Rural Affairs to the next Staffordshire agricultural show as my guest. I will happily take him around, and he can look for farmers who are in favour of the Government’s policy. He can talk to my farmers. There are 446 farmers in the Stafford constituency, which neighbours my own, who I imagine will have a very similar view to that of farmers in my constituency: that this policy will put them out of business. If I take the Minister around the Staffordshire agricultural show, he might meet some of the 351 farmers from the neighbouring Lichfield constituency. Let him see how many of them believe that his policy will help them to grow their businesses.

A family business, whether it is a farm or a manufacturing business, invests not just for five years but for a generation and more. The Government’s policy will drive large financial institutions to own much more of our land—not local farmers who are invested in the community and care about the villages and towns that serve them. This policy is already having an impact. Many businesses that supply farmers are already seeing a significant drop-off in orders, whether it is people who supply agricultural machinery, people who supply seed or many more. I urge the Minister, who I believe comes to this House with a good heart, to look at the wider impact that the policy will have on our countryside, and at how it can be changed and improved.

The Labour party says that it wants to capture the large landowners—the James Dysons. I have a great deal of confidence that such people will be able to find different arrangements that mean that their wealth will never be touched, but many small farmers, who have worked hard all their lives to build something that they can hand on to their children, will be impacted. I fear for them, and I urge the Government to put the dogma of party politics to one side and really think of the impact that the policy will have on the lives of so many farmers who are trying to do the right thing for this country and our countryside.