Future of Farming
Debate between Perran Moon and Mary Creagh(3 weeks, 2 days ago)
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Mary Creagh
With any fiscal change, we look at the previous year’s figures to see what the impact will be. I am not going to get into the analysis around the figures—I want to make some progress. Those figures have been verified by our independent fiscal authority, the OBR.
We know that the current-use rules have been used by wealthy landowners to avoid inheritance tax, and currently the largest estates pay a lower inheritance tax than smaller estates. That is not fair or sustainable.
Perran Moon
Does the Minister agree that it falls to this Government, following the abject failure and economic incompetence of the previous Government, to deal with the rampant speculative acquisition of farmland by closing the tax loophole that has been exploited for too long, and that if the Conservatives really cared about the future of farming, there would be more than one Conservative MP here, with the exception of the shadow Minister and the Chair?
Mary Creagh
I thank my hon. Friend for that intervention, which sets out why the Government are better targeting tax reliefs: to make them fairer and to protect the smallest family farms. We believe that that is a fair and balanced approach that safeguards small family farms, while also fixing the public services that farming families rely on. Those families will be able to pass the family farm down to their children just as previous generations have always done.
I will quickly make a couple of other points. The hon. Member for Upper Bann mentioned Bovaer, the feed additive. We know that agriculture is one of our largest emitting sectors, and we consider that methane-suppressing feed products are an essential tool in the decarbonisation of the agricultural sector. Bovaer was approved by the Food Standards Agency in April 2024 for use in the UK as a feed additive. The authorisation process assessed evidence about animal health, consumer health and environmental safety, and the evidence that was provided to demonstrate the methane reduction efficacy of the product. Bovaer is fully metabolised by the cow and is not present in milk or meat, so there is no consumer exposure to it. I hope that reassures her about Bovaer.
I will also discuss the carbon border adjustment mechanism, which was mentioned by the hon. Member for Chichester (Jess Brown-Fuller). Its introduction, including on imports of specific fertiliser products, was announced by the previous Government in December 2023, but it will not come into force until 2027. It is intended to address carbon leakage, which is the movement of production and emissions from one country to another due to different levels of decarbonisation effort. About 70% of UK agrifood imports come from the EU, and fertiliser used by EU farmers will have already faced a carbon price. Many non-EU imports cannot be produced in the UK, so the Treasury expects that the impact on UK farmers will be modest and that there will be no material impact on food prices.
On capital grants, we have seen an unprecedented demand, and we will continue to process the applications that have already been received and accept new applications for woodland tree health grants. Capital grant plans and management plans are important to help Countryside Stewardship Higher Tier arrangements, protection and—