Clause 1 Debate

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Department: HM Treasury

Clause 1

Michelle Scrogham Excerpts
Monday 12th January 2026

(1 day, 11 hours ago)

Commons Chamber
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Maya Ellis Portrait Maya Ellis (Ribble Valley) (Lab)
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It is a delight to speak in this debate following what was possibly the best Christmas present that I have ever received: no shade to my parents or husband, but when we got the call from the Treasury on 23 December and heard about the raising of the threshold for agricultural property relief and business property relief, it was more than I had ever hoped for. I am grateful to the Chancellor, the Prime Minister and colleagues for navigating the genuinely tricky balance between ensuring that the farming industry is not used to avoid tax, that our family farms are protected and encouraged to thrive, and that food security is protected in increasingly turbulent times internationally.

Let me put on record my huge thanks to my colleagues in the Labour Rural Research Group, of which I am delighted to have become treasurer today as we regroup for our next plans. In pushing for the change to the thresholds, they have shown me the collegiate and constructive politics that I had always hoped was possible for this country, under the solid leadership of my impressive hon. Friend the Member for Suffolk Coastal (Jenny Riddell-Carpenter).

When I stood as an MP in a rural area, I was most excited to learn more about the land and the farming industry that had been all around me growing up. It was challenging to have to start those conversations among such heated debate, but I got into politics because I like a robust discussion. And you know what? The situation allowed us to move past the niceties quickly and to talk frankly from the beginning about what really mattered to farmers, farming communities and family businesses—and it has been a joy to hear about the passion, the history, the deep pride in this country and its traditions, and about what our land and close-knit communities provide for us, from the voices of families who are motivated to keep it going in a way that money alone could never inspire.

We have heard a lot of discussion in recent years about what it means to be British. A poll last year by More in Common found that of all the things that British people are proud of, the countryside came second, with only the NHS ahead of it. There are a lot of decisions to be made about the role of agriculture in British society. I am grateful to Minette Batters for producing in her farming profitability review a brave and system-wide approach to the future of farming in this country, and I hope that the Government are bold enough to take on all her recommendations. We also have trade deals to negotiate, which must uphold the same standards that we rightly hold our farmers to, and indeed that they want to uphold without being undercut from abroad.

We have also had a lot of discussions about ideas like 15-minute cities and sustainable economies. Most rural towns and villages are 15-minute cities, with everything in one place and everyone helping each other out. I know that globalisation favours agglomeration and the urban, but let us not forget who did circular economies first: our rural towns and villages. Let us learn from them now, as much as we ask them to learn from the things that we do in this place.

When we talk about what it means to be British in the light of this Finance Bill, which sets the tone for what we want British growth to be in the next decade, let us make sure that we protect what makes us want to be British. I do not want this country to be prosperous at any cost—I want us to be prosperous in a truly British way. Both myself and the public are clear that that includes the countryside, and our rural economies and communities, being at the very heart of who we are.

I thank the Government for their continued work on adapting the Bill through amendment 24, and looking more widely at how we improve and sustain support for farming in the long term. I have 829 farms in my Ribble Valley constituency—mainly dairy and cattle, and with a wide range of innovation and diversification. One farm I visited has a value of around £3 million, and the people I met there told me that they had slowly seen farm after farm close in their part of the constituency over the past 20 years. Today’s changes mean that they now have confidence that the farm can be passed on to a fifth generation, and they are also confident to invest in new calf housing, supported by other Government funding.

I question how many famers Opposition Members have spoken to in recent weeks, because most of my farmers are happy with these changes and want me to now focus on other critical issues. The farm I mentioned has seen a drop of 9.5p per litre in what it has been paid for milk since last October, so although I now welcome the tax policy in the Bill, I remind the Government that that there is still a huge amount of work to do to ensure that farms are sustainable and our food security is robust.

I hope that the Government will work with us to put increasing pressure on supermarket shareholders to play their part—supermarkets are companies that thrive from British custom—by working much harder to protect the lifeblood of our economy, as farmers are, as well as their pockets.

Michelle Scrogham Portrait Michelle Scrogham (Barrow and Furness) (Lab)
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It has been an absolute pleasure to work with the Labour Rural Research Group and to see the difference it makes when we have serious conversations behind the scenes, talking to the Treasury and Ministers. In the last 12 months, I have met over 100 farmers from my constituency, who were all incredibly concerned about the changes that were proposed. We had serious conversations about what we needed to do and listened to them talk about their problems. While they were all incredibly pleased with the changes to those proposals, does my hon. Friend agree that our farmers and farming communities have struggled for decades? They might have farms worth lots of money, but it is more important that they are profitable. Does she agree that those are the changes that we need to make?

Maya Ellis Portrait Maya Ellis
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I completely agree. That is why it is disappointing that the Opposition are looking at certain details, when all the farmers that I speak to desperately want us to focus on the next stages of how we support those farms. We have done the thing that we needed to do to protect the smallest ones.