Monday 11th November 2024

(1 month, 1 week ago)

Commons Chamber
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Victoria Atkins Portrait Victoria Atkins (Louth and Horncastle) (Con)
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I thank the right hon. Gentleman for holding this important debate, and for welcoming me to my new role. From the arable fields outside my front door to the cattle and horticulture that stretch from the fens, the wolds and the marshes to the coast, my constituency feeds the country. I am delighted and determined to bring some of my county’s common sense and love of the countryside to this important portfolio. On Armistice Day, I pay tribute to the fallen, and particularly to the farmers who stayed behind to feed the nation in wars gone by.

This is a critical time for our rural way of life. After years of unforgiving weather, rising commodity prices and more crop and livestock diseases, our farmers now face a new threat: a city-dwelling, socialist Government who do not understand or care for the rural way of life. The evidence is there in Labour’s first Budget, for which it had 14 years to prepare. [Interruption.] The Back Bencher who is waving his arms around may want to listen to this. In this Budget of broken promises, the Chancellor laid careful plans to break the farming sector, the wider rural economy and our food security. Farmers look after 70% of the UK’s land. They are the keystone of our rural communities. When they struggle, our rural economy is weakened and our food security is put at risk.

Today, as the consequences of this Budget are becoming clearer, I will focus solely on the rural economy, but I make this promise to the Secretary of State: in the future, I will be pressing him and his Government on rural infrastructure, flooding, crime, healthcare, broadband and mobile signals, the solar and wind industries and other matters that affect our countryside, because the impact of this Budget and the choices Labour has made will be felt for years after his expensive wellies have worn out.

I am going to focus on three broken promises by Labour; I am going to make it simple for them. The first broken promise for farming families is the removal of the tax relief that has meant families can pass on their farms to the next generation: agricultural property relief and business property relief. These are not loopholes, as they were described by the city-dwelling Chancellor, but careful tax policy planning developed over many years to prevent family farms and businesses from being split up and sold off. Of course we support efforts to root out abuse of the tax system, but the way in which the Chancellor has designed this policy means that it is tenant farmers and farmers in the middle who will struggle, not the very wealthiest.

This morning, I asked farmers on social media to send me details of how the policy will affect them and their businesses, and it makes for anguished reading. Farmers are furious, anxious and even distressed about the changes. They feel that the Government are coming after them and their families’ livelihoods, when all that they and their ancestors have done is work hard, follow the rules and feed us. I have been inundated with messages about tenant farmers, whom the Government seem to have forgotten. A Welsh landowner has contacted me to say that this change in policy will mean that he must tell six multigenerational farming families on his land that he will have to sell their farms to pay Labour’s family farm tax. As he put it,

“they will lose their homes, businesses and their children’s futures”.

In winding up the debate, can the Minister please explain what those six tenant families are to do when their farms are sold?

An example of how the measure will affect landowning families is provided by a family who have worked their 500-acre farm for four generations. The farm is owned by the mother, who is in her 70s, and her two sons, who are in their late 40s and early 50s, their father having died a few years ago. They make an annual income of around £45,000. When the mother dies, the sons will face an inheritance tax bill of at least £870,000. There is no way in which they can pay that bill without selling their farm. Could the Minister advise the House how that family are to pay Labour’s tax bill without selling their farm?

Richard Tice Portrait Richard Tice (Boston and Skegness) (Reform)
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The right hon. Lady has obviously had lots of letters and emails. Has she had a single one from any farmer who thinks this is a good idea? I have not had any from my constituency of Boston and Skegness.

--- Later in debate ---
Richard Tice Portrait Richard Tice (Boston and Skegness) (Reform)
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We all want growth, but growth requires investment. Investment requires confidence, but confidence among rural communities is collapsing, including in Boston and Skegness. Since the Budget, one farmer has cancelled a £1 million expansion plan for his strawberry-growing business. I know another farmer who has cancelled a £300,000 investment in equipment. Just yesterday, I heard from a hospitality entrepreneur in my constituency who has cancelled another investment in a new pub. It means less growth, fewer jobs and less incentive for young people to stay in our rural communities. That is the reality.

Confidence in the Environment Agency is also collapsing. Just yesterday afternoon, I was on the riverbank at Wainfleet and saw the consequences of failed management, the failure to dredge our rivers and the failure to protect our riverbanks. Again, it means that local farmers and entrepreneurs will not have the confidence to invest. Confidence is such a critical word, but confidence in this Government is collapsing in rural communities. It seems the Government want to blight our countryside, including in my constituency, with thousands of ugly pylons and thousands of acres of solar farms. That will not provide food security.

The Government are determined to set course on this ridiculous farm tax, but I urge them to have the humility to listen and to look at the results. If investment is down, jobs are down and family farms are down in one or two years’ time, they should accept that they were wrong and reverse it.