Farming and Inheritance Tax

Debate between Pete Wishart and Geoffrey Clifton-Brown

Wednesday 4th December 2024 Commons Chamber

[Sir Geoffrey Clifton-Brown]

That was over a much longer period, but these changes will take effect much quicker. I can assure the hon. Gentleman that once the tax starts to bite, those jobs will be lost quite quickly. To put that into perspective, the OBR has predicted that only £590 million a year is due to be raised from this destructive policy. This Budget gave the Department for Work and Pensions a whopping £275.8 billion a year. The revenue raised from this tax would be a mere 0.2% of that total amount.

Over the past few weeks, I have had countless emails from worried farmers about their future, and I was lucky enough to meet some of them when they came up to London to protest recently. They varied in age from their late 20s to their early 90s, and it was a valuable meeting. Many had never protested in their lives, but they have chosen to use their voices now when their livelihoods are under threat. Again, to avoid press intrusion, I want to cite the case of David and his younger son, whose farm in the North Cotswolds has 265 acres, a suckler herd of 200 and a small flock of pedigree poll Dorset sheep. They have a range of modern and traditional buildings and have already diversified those. When they include their house, they estimate that their business is worth £5.5 million. David would be entitled to about £1.5 million in relief, and after the 50% relief from inheritance tax, with an effective rate that the Exchequer Secretary went through, that would leave him with a taxable amount of £800,000 on his death. The Minister might like to listen to this: that farmer only earns in total, on average, about £40,000 a year. How on earth is he expected to pay the tax and live on that £40,000? He will not. The farmer will have to sell up and the farm will not be available to future generations.

[Pete Wishart]

Will the hon. Gentleman give way?

[Sir Geoffrey Clifton-Brown]

It is the last time.

[Pete Wishart]

Would the Tories not have a lot more credibility on this issue if they owned up to the disaster that was Brexit? It opened us up to cheap imports, increased costs for farmers and put up barriers and obstacles to trading. Would they not have much more credibility in attacking the Government on this if they admitted that that was an absolute disaster for farming communities?

[Sir Geoffrey Clifton-Brown]

If the hon. Gentleman wants to call an Adjournment debate on Brexit, he is entitled to do so.

I was talking about the serious issue of how this farmer and many others up and down the country will be able to afford the tax—they will not. I understand that the Government have suggested that farmers should be forward-planning and gifting their farms to their children now, which would mean that they could avoid the tax in future. However, for many farmers, that is not an option.

I will take another constituent of mine, who farms near Fosse Way. He is still working on his farm at 93. He did not retire at 65 like many of us, but has kept working the long, hard days, as he did during the second world war, to ensure that we have enough food on our table. He has spent years planning to ensure that his grandchildren could inherit and take over the farming business. Instead, under this Government, his plan has gone completely out of the window, because he will have to live until he is 101 if he is to avoid the tax altogether.

The only option facing many farmers across the country is to sell off their land and stop farming. Those farmers have worked the land for generations. Their children will have seen their parents take over and will have expected to take over when they can, but now face a future of uncertainty. The Government fail to answer the question of what kind of person will buy the land when it goes on the market. It will not be the ones who have farmed the land all their lives. It will likely be foreign investors and hedge fund managers. They will not have generations of knowledge of how to work the land and will likely take prime arable land out of production, as they could possibly make more money from alternatives.

When I worked on the previous Public Accounts Committee—I urge the Minister to listen and to pledge that he will do this—I managed to obtain a commitment from the last Government that the food security index would be published in Parliament every year. Will the Minister give that pledge so we can continue doing that? That way we can see what effect the tax, the selling off of farms and taking land out of production is having and whether our food production is dropping.

I end with a plea to the Government to go back to the drawing board. I understand that a technical tax consultation on the changes is due to be published early in 2025. I urge the Government to use this time to talk to farmers and professionals across the country and find a way that will ensure that farmers such as Nigel do not lose their life’s work to the taxman. Some obvious alleviations and changes to APR and BPR would be to raise the threshold, so that more smaller farm owners and rental farmers would be exempt, and to have a longer transitioning period. That will help farmers like 93-year-old Nigel. However, the best outcome would be to reverse the policy altogether. Farming is under threat. I do not want to see the fabric of our countryside destroyed for future generations.

Scotland Bill

Debate between Pete Wishart and Geoffrey Clifton-Brown

Monday 7th March 2011 Commons Chamber

[Geoffrey Clifton-Brown]

I welcome that intervention. I take any infringement of airgun law very seriously indeed. Anyone who has an airgun, firearm or shotgun should use it safely and according to the law. I do not diminish incidents when they happen; I am merely saying that whether they happened in Scotland or England there would be the same tabloid coverage. I simply say, in all seriousness to all concerned, that I think we are better with one set of UK-wide firearms legislation, given that this is such a serious subject, so that everyone who uses a firearm of any sort, whether a shotgun, airgun or licensed firearm, knows exactly what the law is. Having different laws in the Principalities of the United Kingdom will lead to trouble.

[Pete Wishart]

Doing things differently in Scotland from the rest of the United Kingdom is what we call devolution, and I say to the hon. Member for The Cotswolds (Geoffrey Clifton-Brown) that we make no apologies for representing our constituencies and communities. If this is the legislation that our communities want, it is up to us as their elected Members to secure it.

I strongly welcome the clause and I congratulate the Calman parties on introducing it. It is one of the few examples in the Bill of a real and positive transfer of powers from the Scotland Office to Scottish Ministers, in recognition of the very significant and different issues in Scotland. The hon. Member for The Cotswolds mentioned the tragic incident in 2005 when young Andrew Morton lost his life at the hands of someone with an airgun. It was not the tabloid press but his parents who started a remarkable campaign to bring the issue to public attention, and they were supported in that cause by politicians, civic groups and everyone who took an interest in the subject.

--- Later in debate ---

[Pete Wishart]

I am grateful to the hon. Gentleman for raising the topic of knives. I am sure he would be the first to congratulate the Scottish Government on reducing the number of knife-related incidents in Scotland in the past few years. It is a remarkable achievement that in four years of SNP government, we have made real progress in reducing knife crime significantly.

[Geoffrey Clifton-Brown]

The hon. Gentleman seems to be arguing that he wants to go further than the Bill by devolving all firearms legislation to Scotland. The Scottish Bill Committee, in which he placed so much faith at the beginning of the proceedings, was split on the vote. Clearly, it is not the overwhelming opinion in Scotland that all firearms legislation ought to be devolved.

[Pete Wishart]

I accept that, but it is our strong view that all firearms legislation should be devolved to the Scottish Parliament because it would enable us to ensure that we could deal with all the issues relating to firearms.