Income Tax (Charge)

Manuela Perteghella Excerpts

Monday 4th November 2024 Commons Chamber

[Manuela Perteghella (Stratford-on-Avon) (LD)]

While I welcome aspects of the Budget, including investment in the NHS and the review of carer’s allowance, I want to express my deep concern about the negative impact that this Budget will have on family farms and rural communities. Farmers in my constituency are already navigating immense financial challenges, from the rising cost of machinery and equipment to punishing weather patterns—repeated heatwaves and flooding—and now face increases in national insurance contributions and changes to agricultural property relief. For Derek Wilkinson, one of the hard-working farmers in my constituency, the increases to national insurance contributions could mean £490,000 in extra costs this year alone, reducing the amount of money available for investment in the farm.

With the changes to agricultural property relief, the Government risk imposing a family farm tax that could sound the death knell for countless small family-owned farms across the UK. Farming is a way of life, often passed on from generation to generation, but the next generation of farmers faces a tax bill just to be able to continue to farm. These changes are not only unfair, but deeply short-sighted: without support, family farms will increasingly fall into the hands of large multinational corporations, eroding our rural communities and threatening our domestic food security. For example, as one of my family farming constituents wrote to me today, land value is much higher than the earning capacity it holds. If my constituent were to sell part of their land or another asset to pay the tax bill, that would render their business unviable.

Farmers are not only custodians of the land: they are the backbone of our rural economy, yet under this Budget, they will be forced to make painful cuts or, in the worst cases, sell their land. The Government should focus on reversing tax cuts for the big banks and asking large corporations such as the social media giants to pay their fair share, rather than placing the burden on hard-working farmers and rural businesses. If we truly value our farmers, we must protect not only their ability to continue to farm and plan for succession, but Britain’s proud tradition of small, independent family farms—farms with roots stretching back generations. Farmed land is not merely a financial asset: it is a legacy of community, stewardship, sustainability and high standards of food production. We must stand by our rural communities and ensure family farms have the support they need to thrive for generations to come, so I urge the Government to review their policy so that family farms are not penalised.