(2 weeks, 3 days ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to serve under your chairmanship, Mr Dowd. I congratulate the hon. Member for Monmouthshire (Catherine Fookes) on securing this really important debate. Improving water quality is something that we all care about, on all sides of the House. Making sure that all those who pollute are held—in the strongest possible terms—to account and that those who need to carry out improvement measures to improve water quality are incentivised to do so matters to us all. That is why, when the Conservatives were in Government, we took action.
The narrative that has been put across by many hon. Members in their contributions to this debate, that the last Conservative Government did nothing, is for the birds. We brought in the Environment Act in 2021; we introduced a plan for water that was about more investment, stronger regulation, and tougher enforcement. Of course, it is vital to understand where the problem lies, which is why we increased monitoring. Back in 2010, only 7% of storm overflows were monitored. We are now at 100%.
We have also seen designated bathing water sites improve their water quality status from 2010, when only 76% of bathing water sites were classified as good or excellent. We are now at 90%, despite stronger regulation having been brought out in 2015. We introduced the ban on water company bosses’ bonuses. We linked dividend payments to environmental performance. We removed the cap on civil penalties from £250,000 per incident to an unlimited amount. We also brought forward the largest infrastructure programme, with £60 billion allocated to revamp ageing assets and reduce the number of sewage spills, allocated funds specifically for our farmers to store more water on their land through water management grants and rolled out the slurry infrastructure grant.
The hon. Member mentions the monitoring of overflows. Will he put on record for the House how many emergency overflows were being monitored under his Government?
I come back to the point that monitoring is incredibly important. This is why we brought out a requirement for all water companies to specifically carry out more monitoring: before 2010, only 7% of storm overflows were monitored. That is completely unacceptable. We needed to understand the problem so that we could not only use our regulators to enforce water companies to carry out the level of investment we would expect of them, but strongly hold those water companies, and indeed all polluters, to account. I encourage the Government to keep going with that, which is why we have taken a constructive approach to the Water (Special Measures) Bill that is working its way through the House.
There are three points which I want to focus on and I would be grateful if the Minister could address them in her response. First are the points that have been made by my right hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman), to do with the £35 million allocation to the River Wye action plan, announced earlier this year. The River Wye action plan was specifically designed to address those challenges to do with pollution from our farmers. The plan set out a range of measures to begin protecting the river immediately from pollution and establish a long-term plan to restore the river for future generations. That included requiring large poultry farms to export manure away from areas where they would otherwise cause excess pollution and providing a fund of up to £35 million for grant support for on-farm poultry manure combustion combustors in the River Wye special area of conservation. The plan also appointed a chair.
I would therefore like to ask the Minister why the plan has been dropped, despite those things having been put in place? Where has the £35 million been reallocated? We are now six months into this Labour Government, but yet there has been no announcement on the River Wye and I fear that there will be no action taken. We are almost coming up to a year since that plan was worked on. If the Minister could update the House on that, it would be greatly appreciated.
The second point is the water restoration fund, which was specifically designed to ringfence money that had been collected from those water companies that had been polluting, to focus specifically on improving water quality. The fund, when it was announced, allocated £11 million-worth of penalties collected from water companies to be offered on a grant basis to local support groups, farmers, landowners and community-led schemes. Hon. Members have talked about how good their local campaigners are at utilising funds that are provided to them, and I absolutely endorse that, but that fund was specifically ringfenced for penalty money reclaimed from water companies to be reinvested.
The Government are not taking the water restoration fund forward, so will the Minister accept the Conservative amendment to the Water (Special Measures) Bill on that point? The water restoration fund came exclusively from water company fines and penalties, which are in addition to any other work the company must carry out to repair breaches that it has caused. Will the Minister explain why the Government are not continuing the fund, and why she does not think it is important that water companies clean up their own mess when money has been collected from them?
The previous Government cut the environmental protection budget for the Environment Agency from £170 million in 2009-10 to £76 million in 2019-20. Does the shadow Minister accept that some of the actions that he has spoken about might not have been necessary had the Environment Agency been funded properly to carry out the important work that it was doing?
We all have to acknowledge that water companies have not been meeting their environmental obligations for far too long. That is why we implemented the monitoring. Regulators—Ofwat, the Drinking Water Inspectorate and the Environment Agency—need robust powers so that they can carry out enforcement.
The water restoration fund ringfenced money collected from the water companies and that allowed farmers, landowners and the many great campaigning organisations that want to carry out nature-based solutions to improve water quality, and there was the additional expectation that water companies put in place their own improvement measures. I ask the Minister: why on earth would the Government not want to continue that approach?
My third point is about bathing water designations, which are a fantastic way of reassuring those who want to bathe in specific areas, whether our lakes, rivers or coastal environments. They also put a greater obligation on the Environment Agency and water companies to carry out additional monitoring.
In May 2024, I was delighted to announce 27 new bathing water sites ahead of the 2024 bathing water season. That brought the number of bathing water sites across England up to 451. In addition, I announced a review of the bathing water regulations, which I had been advocating for some time. Our constituents do not just swim at bathing water sites, but use them for other activities, including canoeing, kayaking and other water-based activities. I very much wanted to see the review of the bathing water regulations, and we announced the change to increase the user basis. I also wanted to see an increase in bathing water designations beyond May to September so that all-year monitoring could take place, and the removal of the automatic de-designation of poor sites so that sites that had been consistently rated poor could keep their designation to keep up the pressure on the water companies and the Environment Agency to continue monitoring. Will the Minister update the House on what is happening with that announcement, which was made last year? What is she doing to ensure bathing water regulations are enhanced and improved?
In the run-up to the general election, Labour made huge promises about what it would do to improve water quality. I feel that it is falling far short on its promises to the electorate. Although we will work constructively with the Government to improve their measures, campaigners—it is not just me—feel that the Water (Special Measures) Bill does not go far enough, and investors feel that they are being penalised while the Government expect them to carry out improvement measures. The Government are penalising our farmers, not only through the family farm tax, but by not providing water grants to them to carry out improvement measures.
(3 weeks, 3 days ago)
General CommitteesIt is a pleasure to serve under your chairmanship, Mrs Harris.
The Minister made reference to the fact that this delegated legislation follows on from the work of the previous Conservative Administration, which is why the official Opposition will support the regulatory changes proposed by the Government today. It is right that we continue to review and update the regulations surrounding our customs and border enforcement, and I welcome some of the reductions in the red tape that this legislation represents.
This legislation protects biosecurity and trade between Great Britain and third countries by making sure that SPS controls can be applied to goods entering Great Britain. The control gained from our withdrawal from the European Union gives us a powerful tool, and it is right that we utilise it in full. We must be careful to ensure in future that it is used for the benefit of British farmers, horticulturalists and the wider public. This delegated legislation will do that significantly, while reducing the risks to do with plant health and biosecurity. That is why I and other colleagues in the official Opposition will continue to hold the Government to account on delivering on our food-security targets and our biosecurity obligations. We support the draft regulations.
(1 month, 1 week ago)
Commons ChamberThank you, Mr Speaker. I take this opportunity to wish you and all in the House a very merry Christmas.
Many customers are rightly concerned about Thames Water and the situation that company finds itself in. For the third time of asking the Secretary of State in this Chamber, will he confirm that he will not issue any regulatory easement to Thames Water in his discussions with that company, so that its environmental obligations and service commitments to its customers will not be reduced?
The Government continue to monitor very closely what is happening in Thames Water, and indeed in all the other water companies. The only easement I have ever seen given to water companies over pollution was that of the previous Government, who turned a blind eye as sewage was flooding through our rivers, lakes and seas. This Government are putting the water companies under tough regulatory special measures—measures that the previous Government could have enacted, but failed to enact.
(1 month, 4 weeks ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to serve under your chairmanship, Sir Mark. I congratulate my right hon. and learned Friend the Member for Torridge and Tavistock (Sir Geoffrey Cox) on securing this important debate.
Devon is one of the farming heartlands of England. The rolling fields, so familiar to tourists and locals, are dutifully managed by Devon’s family farmers, over generations upon generations, producing the highest quality of produce. The county is renowned for the diversity of its farming, with a strong mix of dairy, beef and sheep, with some arable, accompanied by many a farm diversification.
Despite that, across the whole of the south-west, the average farm income is approximately £30,000 lower than the national average. It is vital, therefore, that the Government support those farms and family farmers to continue to deliver high-quality food produce, and to maintain our countryside for the future.
A subject on which the Government and I can find common ground is the money released via the Budget to improve the biosecurity facilities in Weybridge, which will help combat the challenges posed by bluetongue and other diseases. It is vital for farmers in Devon and across the country that we tackle any diseases and their threats early, not only to protect livestock, but to prevent costs spiralling out of control as a result of a fully-fledged outbreak.
Unfortunately, that is where the common ground ends. Since the Budget, the Government have chosen to levy a series of shattering changes on farmers, creating uncertainty. There has also been a failure to raise the overall farming budget, amounting to a real-terms cut in funding.
The rapid and unexpected delinking of payments from the basic payment scheme will see huge drops in the money received by farming businesses as soon as next year. For many farms, that change in their financial forecasting will be devastating, with long-term plans scuppered as Government support is pulled out from underneath them.
Likewise, we are still waiting for the Government to outline their transition process from legacy higher level stewardship—HLS—schemes. Although those schemes have been extended by a year, many farmers are still unable to look beyond that term as they do not know what the Government will expect of them as they move towards the sustainable farming incentive. Indeed, many farmers I have spoken to are deeply frustrated that the equivalent SFI options to HLS options have higher payment rates, yet the Labour Government have made a choice not to allow those locked into HLS agreements the ability to easily transfer into the equivalent SFI.
Just last week, we heard of the sudden closure of capital grant schemes, causing deep frustration and confusion to many applicants. Let us not forget that capital grant funds for farmers aimed to deliver environmental outcomes, not just improve business efficiency. However, that funding has been slashed. Farmers and growers are being asked to adapt, and to adopt measures to improve the environment, but they have been left in the lurch by the Labour Government, without having access to important grant schemes that would enable them to do just that.
Only a month ago, we were shocked to hear plans to accelerate the phase-out of direct payments. Yet, just last week, we heard the decision by the Government to remove capital grants. How on earth is a farming business able to forecast its plans with certainty? There are also the increased direct costs expected, such as the carbon tax on fertiliser, which is estimated to increase the cost of fertiliser by £50 a tonne and will undoubtedly have a direct impact on the cost of food and consequentially inflate food prices. Then, in the Budget, we heard of the increase in employers’ national insurance, coupled with the reduction in the associated threshold, an increase in the minimum wage, the double cab pickup tax—I could go on.
Of course, the biggest impact on our Devonshire farmers and on farmers across the country will be Labour’s family farm tax. The average size of a farm in the south-west is around 200 acres. My right hon. and learned Friend the Member for Torridge and Tavistock rightly outlined the points raised by his constituent who is a dairy farmer. If we take the size of a dairy business coupled with the value associated with the farmland—400 acres was mentioned—the cost and value of the dairy cows, machinery and feedstocks, not to mention the value of the farmhouse and farm buildings, and perhaps any farm diversification project that has been taken into account, we will almost certainly be over and above the cap of £1 million that this Labour Government have chosen to put in place. That applies to both agricultural property relief and business property relief.
As I alluded to, farms in the south-west are even more cash-strapped than the national average. For the many farmers across Devon, the only option under this Labour Government’s implementation of their family farm tax will be to sell assets. But what assets do they sell? Put simply, the combined assault from all measures within the Budget will be fatal for many farms right across the country. That is why the Conservatives want to see this tax reversed. We have forced a vote on that very issue on the Floor of the House tomorrow.
Unsurprisingly, not one Labour MP has contributed to this debate. I only hope that Labour MPs, and indeed this Labour Government, are listening to our British farmers and their constituents, who have raised these concerns time and time again since the Budget. That is why we pledged earlier this year to uprate and broaden the offering of SFI options. But we have heard from many farmers throughout the country that they are unable to get into those new options at the speed at which the previous Conservative Administration—and, it seems, the new Labour Administration—have been giving them out. I can only conclude that the Rural Payments Agency is acting slowly to create an underspend next year for the spending review, to see a slash in the farming budget next year. I hope that is not the case; maybe the Minister will be able to allude to the Government’s intentions.
I know for a fact that many of Devon’s stalwart farmers were alongside not only myself but my colleagues, in Whitehall just a couple of weeks ago, to protest against this Government’s shameful offering to farmers. I just hope that the Government were listening to their fury and their distress, and that they have listened to the comments that by Members from all Opposition parties in this debate, because it matters. The implications for health and wellbeing matter, and the mental health strain that has been put on our farming community matters. So I say to the Minister: listen carefully to what is being said to you; listen to the professional advisers out there. I only hope that you will change course imminently.
It is always a pleasure to serve when you are in the Chair, Sir Mark. I thank the right hon. and learned Member for Torridge and Tavistock (Sir Geoffrey Cox) for bringing this debate in his characteristically forceful way. He seduces; he charms; he flatters. I particularly enjoyed his account of the centuries it has taken to produce the wonderful farms we see in Devon—centuries, of course, that preceded the current agricultural property relief regulations. I also enjoyed his account of the weather that the previous Government created, which left the farming sector in such a parlous state for the new Government to inherit. But he also encouraged me to visit Devon, and I can tell him that, actually, within my first 10 days of being appointed as Minister I had made my way to Devon, as I had done in opposition on a number of occasions, and thoroughly enjoyed it.
However, I also frequently heard from local people that they were concerned about others coming to buy up land over the top of local people. I suspect that we can share our concerns on some of these issues. The right hon. and learned Gentleman referenced the excellent debate that he secured in this Chamber last year on the future of Dartmoor, which I will come on to.
Many important points have been raised, and I have listened carefully to all the thoughtful contributions. I was particularly struck by the comments of the hon. Member for South West Devon (Rebecca Smith). I will go away and look carefully at her points about the moorland stocking rates, which I know my officials are looking at closely, and how they affect Greenwell farm. I always listen closely to the hon. Member for Strangford (Jim Shannon), and the hon. Member for Honiton and Sidmouth (Richard Foord) also made important points. I was struck by the points made by the hon. Member for Winchester (Dr Chambers), particularly around border controls. I remind him that one of the first things we did was to strengthen those controls, so I very much agree with him about threats at the borders.
We absolutely recognise that the farming sector is vital. Family farms are crucial: they produce our food, steward the environment and look after nature. We are all indebted to farmers across this country for doing that, and we all recognise the stresses and strains, the mental health challenges, which the hon. Member for Winchester mentioned, and the pressures from the weather and from disease in the last few years. That is why this Government are investing £5 billion into farming over the next two years—the largest amount ever directed towards sustainable food production, rural economic growth and the recovery of nature in our country’s history. That should send a powerful message to farmers about the value we place on all that they do. Within that, we have committed £1.8 billion for environmental land management schemes, delivering improvements to food security and biodiversity, tackling carbon emissions and improving water quality, air quality and flood resilience.
I will address the point about basic payments made at the beginning by the right hon. and learned Member for Torridge and Tavistock. He is right: we are accelerating the end of the era of payouts to landowners simply for owning land, and the fastest reductions in subsidies will be for those who have historically received the largest payments. For example, it is true that the 4% who received more than £100,000 in subsidies in 2020 will receive no more than £8,000 in 2025, whereas the majority of farmers who receive less than £10,000 to start with will see a gradual reduction in their delinked payments, but they will all have access to ongoing funding through SFI and other schemes. That is the key point. We are speeding up that vital transition, which I fully recognise the previous Government set about initially, to get to a better place in terms of the environment.
The issue of capital grants is interesting, because I must tell the Opposition that there is no magic money tree. The reason why the capital grants have stopped is that they are oversubscribed. We have seen an unprecedented demand this autumn. The Rural Payments Agency received more applications for capital grants from May to November 2024 than over the whole of the 2023-24 financial year. They are also worth more—as of November ’24, the standalone capital grant applications were up by 45% compared with the whole of the last financial year. This is a basic problem that we inherited: there is no management of public funds. That is the core problem that the whole of Government faces with our inheritance from the Conservatives, and we will deal with those points.
I turn to the Dartmoor issues, which the right hon. and learned Member for Torridge and Tavistock rightly raised. On 29 October, we appointed Phil Stocker to chair the new Dartmoor Land Use Management Group, which was one of the central recommendations of the Fursdon review. We are moving forward with David Fursdon’s recommendations to create a long-term plan for land use that preserves the cultural heritage of the area, recovers nature and boosts food production. The group will provide a space for stakeholders to discuss important issues and work to strike the right balance between food security and preserving the diversity and abundance of nature in the area. Mr Stocker will be responsible for steering the group to meet its aims and objectives, and one of his first tasks will be to identify and appoint members who bring the necessary knowledge, expertise and engagement to the group. That process is under way, and we expect the first meeting to take place shortly. I absolutely hear the right hon. and learned Gentleman’s invitation, and at an appropriate point I will, I hope, visit and constructively support the work being done.
I also understand that the right hon. and learned Gentleman met officials from Natural England in October for an update on progress implementing the Fursdon review. We have been in discussions since I took up the role, and we wish the whole process well.
I will turn to the agricultural property relief issue—a well-rehearsed debate that will continue in the main Chamber tomorrow. I will repeat the points that I have made before. We are confident that the changes are proportionate and that smaller farms will be protected. Those above the threshold will have 10 years to pay the tax, with zero interest incurred. No one is doubting that it was a difficult decision, but the truth is that the economic situation that the Government inherited has required us to make tough choices. I reassure Members that based on the figures we have, which are the only ones we can go on—actual claims on estates—we reiterate our point: we feel that the vast majority of people will be not be affected.
On that point, will the Minister confirm whether, when the Government brought in the £1 million cap, they took into account the size of farming units in any analysis on its impact on future IHT claimants?
That will be debated further. On our side, the debate will be led by Treasury Ministers who are in a better position to answer those kinds of questions. However, the complexity and the different range of set-ups and structures that family businesses have makes it difficult to make that assessment. The hon. Gentleman will know that when it comes to legislation, there will be a full assessment and we can look into those details then. I stand by the figures that the Treasury has given us. We expect that the changes will affect only around 500 claims for agricultural property relief in 2026-27, so we believe it is a fair and balanced approach.
The hon. Lady will know that we are one Government and we stand together. Going forward, we are picking up the mess that we inherited, and that is the problem we face. On each of these issues in turn, we have to answer the basic question: who will fix the economic mess? The answer is this Government.
Only because I will not have the opportunity to raise this point at the Dispatch Box tomorrow if a Treasury Minister is responding. Will the Minister correct me if I am wrong? When the Government introduced the £1 million cap, they did not look at the size of family farms that will be impacted. Surely they do not understand the value of an estate on death if they have not looked at the size of it, therefore how can they understand correctly the number of claimants who will be impacted?
We can, because we simply look at the number of claims that have been made in the last few years. That is how we arrive at that conclusion.
(2 months, 2 weeks ago)
Commons ChamberThe Minister’s response to my hon. Friend’s question highlights his arrogance on this issue. He constantly keeps saying that we need to look at the detail, yet his Department and the Treasury disagree on how many farms will be impacted by as much as 40%. In fact, as he knows, the figures being repeatedly regurgitated by the Government consider only past claims for agricultural property relief, not those combined with business property relief, which is just as important. Why? Because the Treasury does not have the data. We need comprehensive detail on this policy to properly understand the impacts of his family farm tax. I ask this for a third time in this House: will he release a full impact assessment—yes or no?
(2 months, 3 weeks ago)
Commons ChamberRural communities are proud communities, and our farmers work tirelessly around the clock not only to put high-quality food on our plates but, through their businesses, to help to keep our rural economy going—as, indeed, do many other rural businesses, as Members on both sides of the House have recognised.
I congratulate the hon. Members for Cannock Chase (Josh Newbury), for Hemel Hempstead (David Taylor) and for Stirling and Strathallan (Chris Kane) on delivering their maiden speeches. I know Stirling and Strathallan very well, having been born in Stirling—I am a proper Unionist—which gave me my red hair. Each spoke proudly on behalf of their constituents, and I welcome them to this place.
We are just a few months into this Labour Government and, following a string of broken promises and damaging cuts, trust among our farming community is now at an all-time low. Why are this new Government, across every single Department, deciding to sideline the voice of our rural communities?
We have heard that the Secretary of State for Energy Security and Net Zero is ploughing ahead with his plans to replace productive agricultural land with solar panels, and to replace protected moorlands with wind turbines—all against the consent of local people. The Secretary of State for Housing, Communities and Local Government is taking away from local people the power to decide how they would like to see their rural communities expand, while providing no commitment whatsoever to improve services and infrastructure alongside any increased demand. The Secretary of State for Transport is scrapping the £2 bus cap, which the previous Government introduced as a vital part of the rural transport plan. Labour’s change leaves many people in remote rural communities paying even more to get to work or to visit friends and loved ones.
The Chancellor is stifling rural growth by hiking national insurance for small business owners, who are the backbone of our rural community, alongside her disastrous changes to inheritance tax relief through the ill-thought-through cap on agricultural property relief and business property relief, which will affect not only multigenerational family farms but trading businesses with assets valued well over the Government’s ridiculous £1 million cap. The Chancellor is also taxing double-cab pick-up trucks, as well as increasing the fertiliser tax, which is expected to increase costs by up to £50 a tonne.
Then, of course, the Secretary of State for Environment, Food and Rural Affairs has willingly sold off his own budget to the Chancellor and broken every pre-election promise that he and his Government made to farmers, and then had the cheek to tell them to do more with less. That is all while he is dramatically reducing the delinked payment rates, which take effect next year, despite many farming businesses already having factored the income into their cash-flow forecasts. It is quite simple: this Labour Government do not understand rural communities and, what is worse, do not even appear to want to listen to them.
Does the hon. Gentleman agree with me and David Walston from Thriplow in South Cambridgeshire that the impact of house prices and infrastructure means there is a complete disconnect between land value and income, which is affecting—
I know David well, as a fellow Nuffield farming scholar, and I agree with him on this Budget’s catastrophic consequences.
I am not sure how many farmers the Secretary of State spoke to in Croydon over the weekend, but I can tell him that the many farmers I spoke to are up in arms. Just last week I was at the northern farming conference in Hexham where, perhaps unsurprisingly, a huge number of complaints were raised by the farmers in attendance, with some even protesting at the gates. Ian Brown, a constituent of the hon. Member for North Northumberland (David Smith), said that this Budget will have catastrophic consequences for the farming community, yet all we heard from the Minister during that conference was a defence of the new Government, and not a single word about how they may have got it wrong. I understand that when he addressed the egg and poultry conference this morning, the Secretary of State concluded that farmers are exaggerating the consequences of the Budget. It is just staggering.
I am sure that many of the new Labour MPs, representing some of our fantastic rural constituencies, have received huge amounts of correspondence from farmers outlining their disgust at Labour’s Budget, but we heard very little from them in voicing their concerns. I am not sure whether the Whips are silencing them from raising their concerns, or whether they are completely tone deaf to the Budget’s direct impact on many of their constituents. If they would like some help, maybe I could outline some of the things they should be raising in this debate, such as increases in taxes on machinery, fertiliser, building materials, farm diversification and employees, and, worst of all, the crippling family farm tax, which risks forcing thousands of hard-working farmers to surrender their life’s work to the Chancellor.
Labour Members do not understand that the vast majority of family farmers are not multimillionaires; most are cash poor and operate under tiny margins, with many struggling to break even. To sustain their businesses, they generally operate from an asset base that has a high value. That is why the APR and BPR caps that have been imposed are so out of touch with the reality on the ground, as my hon. Friend the Member for Gordon and Buchan (Harriet Cross) rightly outlined. When the value of the farmland, the farmhouse and perhaps a cottage or two is taken into account, and then the value of any livestock, growing crops, machinery, stocks or crops in store is added, along with the value of any farm diversification project that may have taken place, the value of any asset is likely to be well in excess of the £1 million cap, so the tax will impact the vast majority of farming businesses.
The Minister will say, “Look at the detail”, but I assure him we have looked at the detail, as have the NFU, the CLA, the Tenant Farmers Association, the Central Association of Agricultural Valuers, and many professionals, be they accountants, solicitors or land agents working in the sector, as well as many of the constituents of right hon. and hon. Members on the Conservative Benches. We have all come to the same conclusion: Labour’s positioning is wrong, will have catastrophic consequences and must change. I again ask the Minister to provide clarity on the information he is relying on to make these decisions.
The smokescreen of a £3 million cap is incompatible with many farming businesses. It will not provide many farming businesses or family farming set-ups with the reassurance the Chancellor claims to be giving them. The same can be said about the justification of the 10-year payment for any IHT debt. That debt would result in assets having to be disposed of, because businesses will simply not have the funds to pay, nor will the banks be willing to lend against any IHT tax, should it be imposed, because many farmers will not be able to service such a loan. Will the Government publish a full impact assessment of the consequences their Budget will have on many farming businesses, food security and the larger rural sector?
We should never forget that this debate is about people. Hard-working farmers are at the heart of the debate. Some of their lives will be changed for ever. Farming can be a very lonely business, with long hours and the constant stress of battling against the odds. Our farmers are under extreme pressure, but unfortunately this Budget has done nothing to provide them with any reassurance, support or certainty that the Government are on their side. It is no surprise that charities are raising concerns about the shocking rise in mental health issues among our farming communities following the announcements in the Government’s Budget. I pay tribute to those farming charities and organisation that help to provide much-needed support, not only to our farmers but to all those involved in our remote rural communities.
To sum up, sometimes in politics it is hard to admit to being wrong, but after speaking to farmers, agricultural businesses and farming organisations up and down the UK, it is clear that the Government have got this wrong and are completely off the mark. I suspect even the Ministers on the Treasury Bench know that they have got this wrong, but they have chosen to double down. For the sake of our farmers and our rural communities—in fact, everyone who has been impacted by the Budget—I say to the Government that change was one of Labour’s key promises in the election and, right now, nothing would be more welcome.
(2 months, 3 weeks ago)
General CommitteesAs ever, it is a pleasure to serve under your chairmanship, Mr Stringer. As we have heard, the regulations exercise powers conferred under the Animal Welfare (Livestock Exports) Act 2024. The Act was a significant achievement of the previous Conservative Government, prohibiting the export for slaughter of certain livestock from Great Britain, and it received royal assent shortly before the general election. We should not forget that it was because the UK had left the European Union that we had the freedom to implement such a ban.
The Conservative party manifesto at the 2019 general election included the commitment to control the live export of livestock, and I am pleased that the Government are helping to deliver on that commitment. The regulations establish enforcement powers, offences and penalties relating to the prohibition on the export of relevant livestock for slaughter, including fattening for subsequent slaughter.
It is appropriate that the issue is being dealt with on a UK-wide basis to ensure that the regulations are introduced simultaneously across England, Scotland and Wales. As a farmer’s son, I am well aware that livestock transport journeys can start in and go through the different nations of the UK. If the devolved nations had created their own regulations, there would have been a divergence, creating complexity, inconsistencies and administrative burdens on the industry and on enforcement agencies.
I am happy to confirm that the Conservative party will provide its continued support for the Act and the regulations. I conclude by paying tribute to officials in the Department and to organisations outside the House that have worked hard to get the regulations before us today.
(2 months, 3 weeks ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to serve under your chairmanship, Mr Efford. I thank the hon. Member for Great Yarmouth (Rupert Lowe) for securing this really important debate. As an island nation, fish are one of the most valuable resources our country possesses. I echo the comments made by hon. Members throughout this debate in championing our fishermen and our wider fishing sector.
Towns and communities across the coast were built on fishing. Just as the previous Government committed to levelling up across the country, the Opposition remain committed to supporting our coastal communities and the fishing industries they are based on. A major part of this commitment was the announcement in December 2021, when the last Conservative Government allocated £100 million to specifically support the long-term future of our UK fishing sector, supporting job creation and boosting seafood exports to new markets. The last Conservative Administration also began the process of replacing the EU’s common fisheries policy with a new, bespoke framework for UK fisheries. Six fisheries management plans have already been consulted on, covering major species including bass, scallops, lobster and crabs. I would be grateful if the Minister could outline what progress he has made in continuing these efforts and delivering the remaining management plans.
Given the importance of the fishing sector, it was deeply concerning that there was no mention of fishing in the Labour manifesto. I am sure that this was deeply worrying to the industry at large. We are unaware of the Labour Government’s plans, as we get closer to 2026. The Government must get its ambitions and plan in line now as we move towards the 2026 conclusion of the UK-EU trade and co-operation agreement, and we must re-enter negotiations with the EU to provide certainty for the wider sector.
As a report outlined earlier in 2023,
“Since 2021 the UK has completed 3 sets of annual fisheries negotiations as an independent coastal State, including bilaterally with the EU, trilaterally with the EU and Norway, and with coastal States in the North-East Atlantic, and beyond. The conclusion of the latest negotiations means the UK fishing industry will benefit from 665,000 tonnes of fishing opportunities in 2023 worth over £750 million. As a result of quota share uplifts agreed in the TCA, the UK has around 115,000 tonnes more quota in the 2023 negotiations than it would have received with its previous share as an EU Member State.”
The year 2026 is incredibly important. Given that the TCA requires a level of interaction from the Government, will the Minister outline what conversations he and his Department are having? Will he confirm that the Government will not use UK fisheries as a bargaining chip to secure a more favourable energy relationship with the EU, as many Members have mentioned?
It is important to support the entire fishing supply chain. The UK’s coastal waters are an incredible natural resource, but the whole sector must be sufficiently supported to properly exploit them. Domestic fish processing and sales are just as important as our fishing fleet in ensuring we have a robust fishing industry that can strengthen our national food security. I am deeply concerned that the introduction of a raft of new labour and employment reforms may threaten all food processing, including our fishing industry, by making it harder and more expensive for our businesses to carry out their activities.
It is not a Labour issue that has caused consternation in the fishing sector; it is the implementation of the previous Government’s proposals and plans, which seriously affected distant-water fishermen. We have been left with just one distant water ship operating in the UK, and its catch dropped to less than 6,500 tonnes—a reduction of 70%—under the leadership of the hon. Gentleman’s Government. That gap is being filled by fish from Norway, Iceland and Russia. Does he think that we need improved negotiations with our neighbours, such as Norway, to restore jobs and fish in this country?
Right now, the current Government have a real opportunity to reset the situation as they go into the negotiations with the European Union. Before 2026, there is an opportunity to provide much more certainty to the fishing fleet. As Opposition Members have said, when going into negotiations it is important to set the bar incredibly high, so that we get the landing pitch right and ensure we get the best result for our UK fishing industry. If that means setting the bar so high that we are unwilling to enter into a deal that is set too early, so be it. At the end of the day, we have to get the right result for the UK fishing industry, because it will be under threat if we do not.
On the concerns I raised about employment law, I would be grateful if the Minister could outline any economic analysis that was undertaken for the Employment Rights Bill, specifically on the fishing sector. I am deeply concerned that the introduction of a raft of new labour reforms will threaten that sector. They will not only hike up employers’ national insurance rates and lower the threshold, but will hike up the minimum wage and introduce day one rights that pile on risk for employers. Concern has been raised with me and other Members that that will put pressure on the fishing industry. That is why it is so important that we get the discussions right at this time.
I come from Fleetwood, and our fishing industry was decimated after the cod wars. My husband works in fish processing in my area, and let me tell the hon. Gentleman that Brexit, which was introduced under his party’s leadership, destroyed fish exports from Fleetwood. Every Monday, a van used to come from Peterhead and stop at Fleetwood; we used to fill it up with fish, and it went out to France. That has never happened since we left the European Union. The legislation that the Labour party is bringing in will secure jobs on Fleetwood dock and look after the men who work there. Fish processing is very hard work. It is very cold, and it is a skill—
I thank the hon. Lady for her intervention, but have to politely disagree, given the concerns that have been raised by businesses and wider industry about the impact that the Employment Rights Bill will have on employers—not only those that want to recruit temporary staff, but those that are directly involved throughout the whole supply chain. Having a farming background, I am well aware how difficult it is for anyone producing food in any primary industry, not least the fishing industry or the farming sector. Can we see the Government’s analysis of the economic impact of the Bill on the food processing sector, and can the Minister tell us his view on the impact it will have on the primary sector? I fear that it is far worse than the Government are saying.
We all want to see fairer access and a fairer deal for our fishermen. Time is of the essence as we move towards 2026. I hope that the Government will aim high in their aspirations to achieve a better deal for our fishermen.
(2 months, 4 weeks ago)
Commons ChamberMr Speaker,
“losing a farm is not like losing any other business—it can’t come back.”
Those are not my words, but the words of our Prime Minister at the National Farmers Union conference just last year. Over the weekend, we have heard gut-wrenching stories from farmers up and down the nation who feel completely and utterly betrayed by the measures in this Budget. I ask the Minister: why does the Secretary of State continue to say that he is proud of his family farm tax? Does the Minister realise that the vast majority of farming families are not multimillionaires? Most are cash poor and many are struggling to break even. How does the Secretary of State expect farmers, in his words, to do—[Interruption.]
Order. Can I just say to the hon. Member for East Thanet (Ms Billington) that I do not need any chuntering? Do we understand?
How does the Secretary of State expect farmers to do more with less? Why is he happy to hand our next generation of farmers an impossible tax bill?
Next, the Government claim that small family farmers will be protected, yet the Country Land and Business Association and the NFU have today disputed the Government’s figures. Will the Minister commit to releasing a full assessment of his policy, including an impact on national food security?
While the changes to inheritance tax relief have been gaining the national headlines, there are many other negative impacts on farming businesses from the Budget. Increased national insurance contributions, coupled with a lower national threshold; an accelerated reduction in de-linked payment rates; higher taxes on double-cab pick-up vehicles; new taxes on fertilisers—I could go on, but this all begs the question: does the right hon. Member for Streatham and Croydon North (Steve Reed) actually know anything about farming at all? More importantly, after the Secretary of State looked British farmers in the eye and specifically promised them that there would be no changes to agricultural property relief, how on earth can farmers believe a single word that his Minister is about to say?
I am very grateful to the hon. Gentleman for promoting me to Secretary of State—I hope he has similar success in the coming hours.
The hon. Gentleman raises a whole series of questions. He asked again, as others have, about other elements in the Budget. The figures are absolutely there; they were published by the Treasury and are there for all to read. They are the facts on the estates that have made claims on agricultural property relief in the last year available. [Interruption.] They are there for everyone to see. It is not difficult, it is not complicated—they are there.
Something that perhaps has not been said, but which should be, is that there were many calls to reflect the changing way in which farming operates by including environmental land management schemes within the scope of agricultural property relief. I hear nothing from Opposition Front Benchers about that. Do they not understand the way in which British farming is changing?
(3 months, 1 week ago)
Commons ChamberI thank the Secretary of State for prior sight of his statement.
Fourteen years in opposition—and this is what the Labour party has to offer. Labour Members have had more than a decade to craft a clear package of policies, listen to campaigners and prepare to govern, yet what they have brought to the House today illustrates no sign of any ambition. This is a sign of hesitation. It is a way to delay the difficult decisions and buy themselves more time. It is part of a growing trend that unfortunately we are seeing consistently from this new Labour Government, across all Departments: announce a review, a taskforce and yet another commission, and hope the public do not notice that really they never had much of a plan at all.
That approach is simply not going to wash with the bill payers. Before the election, the Secretary of State toured the country with campaigners like Feargal Sharkey, promising radical change to the sector. He is now in power, and what has he actually achieved so far? He spent the entire election campaign telling voters that he wanted to put water company bosses in the dock, but we can see from the Government’s announcements on the Water (Special Measures) Bill that it will achieve no such thing, as campaigners and industry experts have already pointed out. Nor will the Bill provide any reassurance whatever for investors. Rather marvellously, the Secretary of State has managed not only to frustrate campaigners, but to disenfranchise investors from any long-term aspirations to invest in the sector.
The Secretary of State says that he has announced a ban on water company bonuses. Hang on: that was a policy that we brought forward in our time in government and that the Secretary of State is now attempting to reannounce and pass off as his own. It was the Conservatives who announced a ban on water company bosses’ bonuses, linked shareholder dividends to environmental performance, quadrupled water company inspections, fast-tracked investments to cut spills and launched a whistleblowing portal for water company workers to report breaches.
It is surprising to hear the Secretary of State claim that his Government are truly serious about this issue, when their proposals are less firm than the measures delivered by the previous Government. He could take real action right now by progressing the last Conservative Administration’s plans for an automatic ban on water company bosses’ bonuses when offences take place. Rehashing announcements already set in motion by the Conservative Government, putting forward policies that will not actually put more pressure on water company bosses and then simply pressing pause on a year-long review will not result in the widespread change that Labour promised its voters.
The Secretary of State acknowledges that the announced review will make no recommendations that affect the current price review ’24 process, meaning that there will be no chance of the Government considering making any significant change until 2029 at the earliest. Will he provide an outline of the timeframe associated with actual recommendations from the review being implemented and put in place? When is any real benefit from this further review, taskforce or commission likely to be experienced, not only for the water industry, in terms of infrastructure improvements, but for the bill payer and the environment? It seems to me that the Secretary of State is just kicking the can down the road with another review, another taskforce and another commission, and removing himself from any of the tough decisions.
The Secretary of State said that the review would have no impact on the price review ’24 process. Will he outline exactly when the positive impacts will come? By my calculations, it will not be until 2029 at the earliest. Will he also outline the impact of the review on the measures proposed in the Water (Special Measures) Bill? What will be done if the recommendations do not sit comfortably with the current proposals?
One cannot help concluding that the Secretary of State is out of depth on this issue, cannot deliver on the tough language that he promised in the run-up to the general election and is now doing nothing more than attempting to kick the tough decisions down the road and into the long grass. This Secretary of State seems to be all bark and no bite.
Well, that was all a little bit embarrassing, wasn’t it? The previous Government had 14 years in power, our rivers, lakes and seas are awash with record levels of pollution, and that is all the Conservatives have to say. I took action seven days after the general election: I brought the water chief execs into my office, and we agreed that money earmarked for investment will be ringfenced so that it cannot be diverted to pay multimillion-pound bonuses to water chief execs who oversee failure in the water sector, as happened on the shadow Minister’s watch. The commission will reset the sector that the Conservatives broke, and clean up the water that they polluted. It will report to the Government in June and inform subsequent legislation.