Farming and Rural Communities

Lord Harlech Excerpts

Thursday 3rd April 2025 Lords Chamber

[Lord Harlech (Con)]

My Lords, it is a great pleasure to follow my noble friend. The House is enriched by the knowledge and experience that she brings to your Lordships’ Chamber. I declare my farming and land management interests in Wales and congratulate my noble friend Lord Roborough on securing this crucial debate.

Since the general election, we have seen policy decisions that have actively harmed the agricultural sector, undermined rural prosperity and jeopardised our nation’s food security. The Government’s election platform promised to support farmers and stimulate rural economic growth; instead, their policies have betrayed those commitments, leaving many farming businesses struggling to survive. A prime example of this is the sudden and shocking closure of the sustainable farming incentive. That move, made without consultation or warning, has left thousands of farmers in limbo. Many were in the midst of applications, investing time and resources into what was meant to be a stable scheme. Now they find themselves excluded, with no viable alternative, forced to return to more intensive farming methods—in direct contradiction of the UK’s environmental goals.

Take, for example, Richard, a dairy farmer from Cumbria. He had spent months preparing his SFI application, carefully planning to transition his farm to more sustainable practices. When the scheme was abruptly closed, he was left with no support and his business is now at risk of collapse. He may have no option but to sell off part of his herd just to survive.

The Country Land and Business Association, alongside CBI Economics, has provided alarming projections that the changes to APR and BPR could shrink UK gross value added by nearly £15 billion by 2030, eliminate more than 208,000 jobs and, paradoxically, reduce tax receipts by almost £1.9 billion. For individual farming businesses, this means an average loss of nearly 10% of turnover, a 15% drop in investment and an 8% reduction in staff. These are not mere numbers; they represent family-run farms being forced out of business, young farmers unable to inherit land and a bleak future for British agriculture.

Emily, a young farmer from Yorkshire, had been preparing to take over her family’s arable farm, but the proposed changes to APR and BPR mean she now fears that inheritance tax will make it financially impossible. She said her family has worked the land for generations, but this may be the last. The Government say they would support her, but their policies say otherwise. The Government remain silent on this disaster, refusing even to open a consultation on these damaging changes. That is unacceptable—the Government must engage with industry stakeholders to find a fairer approach, such as a clawback mechanism, that does not threaten the survival of farming businesses across the country.

The healthcare perspective on this debate, which we heard from the noble Lord, Lord Kakkar, was fascinating. It is often absent when discussing rural issues.

Several noble Lords have mentioned housing. Rural Britain is in the grip of a housing crisis, with young people unable to afford homes in the communities in which they grew up. Small-scale development could address this crisis while supporting local economies. Instead, as my noble friend Lord Grayling outlined, the Government’s proposals focus on empowering combined authorities to develop vast urban projects, while failing to equip local councils with the resources they need to approve modest, essential rural housing. Furthermore, the reforms inexplicably excluded national parks, further isolating these communities from economic opportunity.

The message from rural Britain is clear: this Government’s policies are failing it. What good is a 25-year plan if you do not know how you will survive the next six months? The farming community is being taxed into oblivion, environmental goals are being undermined and economic growth is being suffocated by bureaucratic inertia. If the Government are serious about their rural commitments, they must take immediate action—reinstate the sustainable farming incentive, rethink inheritance tax relief changes, introduce fairer planning policies and protect farmers from unjust compulsory purchase powers.

Our farmers and rural communities are the backbone of this country. They deserve better. I urge the Government to listen, consult and act before it is too late.