(2 days, 11 hours ago)
Commons ChamberI thank the Secretary of State for setting out, earlier today, the support that our Government have put in place for rural areas, and particularly longer-term planned policies that will bring much-needed sustainability to rural communities such as mine in Shrewsbury. There are more than 350 farms in the beautiful villages to the west and south of Shrewsbury town, where there are stunning views over the Shrewsbury hills; it is an area of outstanding natural beauty and a well-known hiking spot. Locally, as nationally, farmers and the wider rural community have been concerned for several years, because despite all the noise from Opposition Members, the previous Conservative Government left our farmers to struggle. In fact, they presided over a deterioration in the profitability of British farming that decimated most of our smallest farms. They have been squeezed out of business due to ever higher overheads, low supermarket prices and creeping land values.
Where was the support from the previous Conservative Government? Where was the post-Brexit funding? Where was the post-Brexit trading deal that was to have protected animal exports? Where was the support with customs red tape? Instead, there were the SFI and ELM schemes, which were rushed, complicated and too short-termist to be of any real use. It is no surprise that there has been an underspend of £227 million on those schemes in the past two years, as farmers could not respond quickly enough to the complex schemes, and the schemes did not match their need for longer-term planning. That underspend is criminal when we consider that one in 10 dairy farmers has gone under in the past two years.
All across the industry, farmers are telling us the same thing: British farming is no longer profitable. This weekend, like many Members, I was out visiting my local farms in Arscott and Yockleton, just outside Shrewsbury. I met fourth and fifth-generation farmers. Yes, they did have questions for me about the threshold for agricultural land, and I was able to sit with them and explain that the threshold for couples is £3 million. More importantly still, for true family farms—those that we wish to protect—where at least two generations are working side by side in partnership, they can share not just the workload but their assets by planning their financial future. That is manageable. What is not manageable is those farmers’ overriding concern about the ever-declining profits in food production in our country. That is their No. 1 concern, and ours.
On every farm that I visit—I am sure that it is the same at every farm that hon. Members visit, whether arable or livestock—what comes up is the way that low product values, coupled with higher overheads, threaten not just farmers but all the supply chains that hold together the fabric of our rural communities, to whom we owe so much. I was therefore pleased to be able to remind farmers in my area that our Budget announcement —not much press coverage was given to it—delivered the greatest agricultural investment in our country’s history: £5 billion over two years. By the way, the fact that the commitment is over two years is welcomed by our farmers, who can finally plan, with security and stability, more than one season ahead. Given the awful conditions that they have endured over the last few years, that immediate injection of funding and certainty is very welcome. Let us not forget that it was the main ask of the National Farmers Union in the weeks and months leading up to our Budget; we have delivered on its No. 1 request.
However, what most pleased farmers—they were surprised to hear it—was our long-term plan in the new deal for farmers, through which we will protect farmers from being undercut, through trade deals, by those low welfare standards. We will also sign the all-important new veterinary agreement with the EU to cut red tape at our borders and get British food exports moving again.
Will the hon. Lady give way?
I am sorry, but I need to rush.
Labour’s flagship policy, of which we are all so truly proud, is that we will underpin British farming with long-term sustainable contracts, by directing public procurement towards British suppliers. We will use the Government’s purchasing power to back British produce; 50% of food bought in every hospital, army base and prison will be locally sourced or certified to high economic standards. These are catering contracts that the Government are already funding. Now, thanks to our Labour Government, all that investment will benefit our local farmers directly, and for the long term. Every farmer I have spoken to is delighted to hear that we have understood that the problem is the long-term profitability of farming, and that the Government are prepared to put their money where their mouth is to protect British farmers.