(1 week, 3 days ago)
Commons ChamberNo. What is more, the NFU, the Tenant Farmers Association and the Country Land and Business Association cannot make them add up either.
I will give way once more, and then I must make some progress.
The Secretary of State talked about the fact that the price of agricultural land is artificially high because of tax avoiders trying to avoid paying inheritance tax. The implication of the proposed measures would be that the price of agricultural land will fall. That may sound attractive to people who are trying to come into the market, but has my right hon. Friend considered the number of farmers who have mortgages against their land? They could find themselves in negative equity as a result of the pushing down of the price of agricultural land.
Very much so, and I thank my hon. Friends the Members for Wyre Forest (Mark Garnier) and for North Dorset (Simon Hoare) for their accurate and insightful interventions. Not only do some farmers have mortgages, but we know tenant farmers worry that their farms will be sold off, so that the landowners can enter into what some call a “greenwashing” agreement with corporates, in order to plant trees and gain access to green funds. One should not make the mistake of assuming that this ill-thought-through policy will lead to cheaper land prices: the maths on that is almost as bad as the Chancellor’s cockeyed accounting with her economic inheritance.
Let me tackle the ideology of this policy, reiterated by the Secretary of State during this debate, which is matched by Labour’s incompetence. First, the Chancellor herself does not seem to know the threshold at which her policy kicks in and whether spouses can transfer their allowances. Indeed, the Secretary of State does not seem to know that either. The Chancellor has said that the allowances can be transferred, yet Treasury documents supporting her Budget say that they cannot. In his winding-up speech, will the Minister clarify whether the Treasury’s documents are wrong or the Chancellor is wrong?
Secondly, will the Minister explain why this Government have targeted only British-owned farms and businesses with this tax hike? Companies operating here but owned overseas, private equity-owned businesses and public companies listed on stock markets will not have to pay Labour’s tax; it is just British families.
Thirdly, the Chancellor—and, indeed, just now, the Secretary of State—gave assurances that only a quarter of farms will be affected, but that is not backed up by the data from the Secretary of State’s own Department. DEFRA figures show that, in fact, these changes will affect two thirds of farms—some 66%. Will the Minister explain that discrepancy and what he has done personally to confirm those figures, so that he ensures he gives only accurate information to the House?
(4 months ago)
Commons ChamberThe hon. Gentleman raises an important matter. Indeed, it was after the 2007 floods that the idea of a flood reinsurance scheme came about. It was something that was established when the last Government came into power in 2010. It has now become somewhat easier to get insurance, but it does continue to be a challenge, and I shall highlight examples of that in my speech. It will be interesting to hear if the Minister can confirm from the Dispatch Box whether Flood Re will continue to be a priority for the new Government.
I have campaigned successfully for many flood defence schemes in West Worcestershire over the years. We have made real progress. In particular, the two schemes that protect Upton upon Severn have been deployed year in, year out. In fact, they have successfully protected Upton upon Severn from flooding something like 40 times since they were opened in 2013. We have had a bund built along the Defford Road in Pershore; a flood defence gate installed in Kempsey; a gate barrier installed at Uckinghall; a bund built in Powick; and a community scheme is now in place in Callow End, so there has been real progress.
We have seen the cumulative impact of the many millions that have been spent on flood defences across West Worcestershire in the resilience that the communities showed last winter when it was so very wet. I would like to take this opportunity to put on record my thanks to previous flood Ministers, to the teams at the Environment Agency, to Worcestershire county council and to the regional flood defence committees, which have helped over time to get these flood defence scheme funded and built.
I am very grateful to my hon. Friend for giving way. She describes the huge amount of investment that has been going into the River Severn. She has an awful lot of the River Severn in her constituency. She will be aware that, in Bewdley, about £11 million is being spent on flood defences. She may remember that Daniel Kawczynski, the former Member for Shrewsbury, set up an action group because he recognised that the whole of the River Severn is a cohesive watercourse, which requires a lot of effort and attention. That role in the action group is now vacant and I was wondering whether she would be enthusiastic to take it on. She would have a lot of support from all of those Members of Parliament representing constituents on what used to be the blue River Severn, which is now, I think, a bit red and orange in places.
It is great to see my hon. Friend in the Chamber. She is right. The economic chaos that we face, and which continued as we changed Government, Prime Ministers and Chancellors, did not provide the stability needed to get on with these schemes and deliver them. The change that people required has now taken place, and we have stability and new Ministers—hopefully, I am not going anywhere quickly—so I hope we can get on and deliver. I hope that my hon. Friend will be persistent in pursuing this issue.
I had a careful look at the Tenbury Wells scheme mentioned by the hon. Member for West Worcestershire and how complicated the measure would be. As she said, it would potentially involve people having to move house and, at times, parts of their garden being removed and roads being closed. I understand that the necessary consultation has been undertaken with residents, in the detail needed. Nobody wants a scheme that will be expensive and disruptive, or that does not perform as expected. Anything put in place must also be in keeping with that beautiful part of the country. As a result, design costs have increased repeatedly. There is always the difficulty that we want something that is as good as possible at ensuring flood alleviation, designed in the best possible way, in keeping with the character of the town and that causes minimum disruption.
My understanding of the situation is that the scheme has become much more expensive as time has gone on; that is something that we might want to discuss in more detail when we meet. It is important that we get it right, and that it is affordable, given the amount of money that has been allocated. I am happy to take forward that conversation. I would not want to be the Minister for delivering something that residents would not want to have in their community.
As the hon. Member will know from the National Audit Office report, “Resilience to flooding”, which was published last November, we have inherited a floods capital programme that faces extreme delivery challenges. As has been mentioned, the NAO cites a number of projects that have not gone through, partly because they could not be delivered within the timeframe, partly because of inflation, and partly because of covid and other challenges in government. That has had an impact, so I am reviewing absolutely everything that is going on in the Environment Agency and looking at all the schemes. I want to update hon. Members on all that as quickly as possible, and if anyone wishes to see me about individual schemes, they are more than welcome to do so.
I congratulate the Minister on her new job; she is doing a fantastic job so far and saying all the things that I, as a neighbour of this scheme, want to hear. She talked about reviewing the project, and I think we would all agree that there is no harm in that, but it is probably worth bringing up my experience just down the river from Tenbury Wells in Bewdley, where flood defence schemes are being put in place very successfully, and are working well for the town and the community. However, one issue keeps coming up: the disruption caused by having to switch to one-way traffic on the bridge results in a slight drop-off in trade in the town.
It is very early days for the Minister, but as part of the review, it might be helpful to reassure traders. Perhaps her Department could look at not necessarily financial compensation, but something that could help businesses that struggle with cash flow during lean periods because of the works, in order to get them through. Ultimately, we will get far better economic value from a town that has flood defences, because it will not flood any more, but in the interim, this issue is problematic. I ask her respectfully to have a look at that in her review, so that we can help traders to get over the hump—that difficult moment—of the flood defence works.
I thank the hon. Gentleman for his kind words, and I recognise the difficulty that these works cause to businesses. That goes to the point that I made to the hon. Member for West Worcestershire: the design has to be right, and works have to be done in conjunction with the community. That is why works sometimes become more expensive. However, I will take away the point the hon. Gentleman makes.
On the funding formula, I said many times in opposition that I was keen to look under the bonnet, and now I am delighted to get that chance for a detailed look at exactly how things work. That is something I am reviewing. As is always the case, pulling one lever can have unintended consequences elsewhere, so I hope the hon. Gentleman will forgive me for not giving the details of exactly which levers I intend to pull. However, I am actively gaining a clear and transparent understanding of how the funding works, who the winners and losers are under the formula that we have, and our priorities.