Budget: Implications for Farming Communities

Lord Roborough Excerpts
Tuesday 5th November 2024

(2 days, 3 hours ago)

Lords Chamber
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Lord Roborough Portrait Lord Roborough (Con)
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My Lords, I refer the House to my interests as set out in the register, including as a farmer. The removal of half of inheritance tax relief over £1 million under agricultural property relief and business property relief is an attack on all family-owned businesses. Working family farmers are the least able to afford this tax due to high asset values and low incomes. How can the Minister defend this tax to the family farming community and all family businesses, where investment, entrepreneurship and aspiration are now undermined?

Baroness Hayman of Ullock Portrait The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Baroness Hayman of Ullock) (Lab)
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My Lords, we understand farmers’ anxiety at changes to agricultural property relief. However, the vast majority of those claiming relief will not be affected by the changes. The latest data available shows that the top 7% of claims for agricultural property relief in 2021-22 accounted for 40% of the cost of the tax relief, with the top 2% accounting for 22% of the cost. Most families will be able to pass the family farm down to their children, just as previous generations have always done.