Farming and Inheritance Tax
Sam Rushworth Excerpts(2 weeks, 3 days ago)
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Tim Farron
Yes, and the Government should have been thinking about these things. We heard from the Minister that lots of planning and diligence went into this before it came out of the Chancellor’s mouth on Budget day, but it does not feel like it, because there is a whole range of issues that could have been considered in advance.
There is something that will do more immediate harm to farming than even the inheritance tax changes, and that is the Government’s decision to summarily reduce basic payments by 76% in a single year. This will have a direct impact, in particular, on tenant farmers who rely on that money and will end up missing their rent payments. We will see evictions as a consequence.
The Government have trumpeted the £5 billion over two years, which my basic maths tells me is £2.5 billion a year. I am always careful, or nervous, about making confident predictions, particularly in this place, but my confident prediction is that they will not spend that budget. If the basic payments are cut by 76% without the new schemes being up and running to replace them, the Government will not spend that money. By underspending, this Government will end up in the same mess as the last one.
Sam Rushworth (Bishop Auckland) (Lab)
I have huge respect for the hon. Gentleman, my constituency neighbour, but I have a question. I think the hon. Member for North Cornwall (Ben Maguire) suggested a working farm tax, and it was not clear to me whether the hon. Gentleman accepted or rejected that suggestion. We have heard Liberal Democrats talk in recent weeks about land taxes and wealth taxes as alternatives to raise the revenue to fund their many, many spending commitments. Could the hon. Gentleman clarify that point?
Tim Farron
To clarify my response to my hon. Friend the Member for North Cornwall (Ben Maguire), the Government could have looked at a working farm exemption so that these people will never have to pay this inheritance tax. Who knows, the Government might consider putting people who are not active farmers under the HMRC microscope instead. That would be far preferable to what we have.
Grant payments are a significant issue. With the cut to basic payments and the Government’s failure to be as quick as they should have been on the new payments, I am pretty confident that we will see an underspend from this Government, just as we did from the last one.
In recent days we have seen the Government’s decision to pause capital grant payments, which will be a huge blow to our farmers. The areas that will end up being cut or paused include: hedging, walling and fencing; countryside stewardship grants to allow nature-friendly farming; work to prevent pollution of waterways; slurry storage; covered yards to clean up our rivers; peatland restoration; carbon storage; and being the cornerstone of natural flood management.
My constituent Matthew, who farms in Eden valley, explained yesterday that he has just finished installing 10,000 metres of fencing for a nature-friendly farming project. The pause in the grant funding means that he will not be able to buy any hedge plants to finish the work, and nor will he get the mid-tier countryside stewardship annual payment. He says:
“Some say it could be paused until June…this is a business-breaking issue.”
On top of that, the higher-level payment has not increased since I entered this House in 2005. It was £40 per hectare for moorland restoration in 2005, and it is £40 per hectare today. That is a brutal attack on hill farmers and those who farm our common land. Again, some of the sustainable farming incentive options on common land are good, and they should be applauded because doing more for nature is a good thing, but the SFI moorland options are currently closed to all common land because of technical issues online. We can see those consequences very clearly.
Among all this, farmers are struggling, often with their mental health. The isolation that people feel when their family have farmed a valley for generations and they might be the one who ends up losing the family farm is utterly devastating. However, farmers just crack on with the job, so our job is to be their voice.
Farming is a glorious vocation. Farmers work to protect our towns and villages from flooding, to promote biodiversity, to back the tourism economy, to tackle climate change, to underpin landscape heritage and to produce our food. The fundamental failure of both the last Government and this one is that they have brought together agricultural policies that actively disincentivise the production of food. That is criminal, and it is foolish. The first thing the Liberal Democrats would put right is a food strategy and an additional £1 billion a year for ELMs to back our family farmers.
It is time we listened to farmers such as Liz and Matthew Staley from near Kirkby Stephen, and their sons Luke and Lewis. I regularly talk to Liz, and she says:
“There is so much anguish out there for farmers.”
On the new schemes, she says:
“They aren’t working and there isn’t that crossover just yet… They’re just making it harder to make a living.”
I want to encourage people on all sides, especially in government, to listen to Liz. It is the vocation of farmers to save our planet and to feed our country. The least we can do is give them the value and the future they deserve.
Sam Rushworth
A moment ago, we heard talk from the Liberal Democrat Benches of a family farm tax and land taxes. It now seems that the right hon. Lady is suggesting we take up Dan Neidle’s suggestion. Will she confirm whether that is the case?
Esther McVey
It would be good if Members listened to what I said. I said it is not too late for Labour to reverse this policy; even their own tax advisers are saying, on closer inspection, it needs to be reversed. That is what I am asking those on the Government Benches to do.
We have heard today that farmers are asset-rich, but in reality they are cash poor, and that is the crux of the matter before us today. In the time I have left, I will mention a couple of farmers from my constituency. A seventh-generation farmer told me she was hoping to pass her farm on to the eighth generation, but that now does not seem possible because if they have to sell a proportion of the land, which they will, that will make the whole farm is unviable.
Another farmer of mine, Richard Shepherd, a few years ago built a state-of-the-art cow cubicle shed for their dairy herd, a piece of modern technology he believed would prepare the farm for the challenges of the 21st century, investing in methods to produce high-quality, affordable and nutritious food—the type of innovation this country will come to rely on for food security in the future. However, now, with this change from the Labour Government, he will owe between £600,000 and over £1 million in inheritance tax. He has said that, “Like any other business, we need confidence to invest in our farms. That’s what we wanted to do: we wanted to grow our farm, invest in it, and this will destroy this.”
Richard Barnett, an accountant who works with many farmers in my constituency, has warned of two immediate consequences of these proposed changes. First, there will be an increase in the number of individuals seeking to acquire farmland up to £1 million to mitigate inheritance tax, resulting in a reduction in the amount of tax that the Treasury can expect to generate from this policy, as well as an increase in land prices. Secondly, he expects a consequence of these changes to be that the financial industry will enter the land market with individuals investing up to £1 million in farmland, acquiring it and then we will see farmland being lost—
Sam Rushworth (Bishop Auckland) (Lab)
I came here today to speak up for upland farmers in my constituency. Although I am not a farmer myself, I grew up within smelling distance of a dairy farm, and coming from a working background, I have earned a living working outdoors in all weathers as a gardener, so I know what it feels like to have mud on my boots and frozen fingers. For a lot of our farmers, though, the physical strain is only part of the daily struggle; the other part is the anxiety of having so much invested in such a precarious business, and the burden of responsibility for keeping the farm alive in an era of shrinking profits.
Because farmers are working people who deserve secure livelihoods, and because food security is essential for our national security, I hold quarterly forums with the farmers in my area—I say that before anyone tries to intervene to ask me how many I meet with. I hold regular forums and, in fact, some of our council candidates are local sheep and cattle farmers. Of course, I have met with them more in the last few weeks than I had been doing. In the meantime, I am having conversations with fellow MPs and with DEFRA and Treasury officials and Ministers to push for the issues that matter to farmers in our area.
As such, when I went to the Bill Office last night to receive the motion for today’s debate, I was genuinely unsure how I would vote. I read it with an open mind, but when I saw it, I thought, “What a load of tripe.” By the way, I thank the right hon. Member for Salisbury (John Glen) for taking a much more constructive tone in his speech a moment ago. The Opposition could have come to the Chamber today and presented a constructive motion that many rural MPs on the Government Back Benches would have sympathised with. Instead, this motion seems calibrated to make us want to oppose it. It seems to me that the Opposition are more interested in playing party politics and cosplaying as the friends of farmers with this motion than they are in genuinely addressing issues that they both ignored in government and are now ignoring in opposition.
Some legitimate concerns about the policy have been expressed to me by farmers in my constituency. By the way, many farmers in my constituency sympathise with its aims and with what the Government are trying to achieve. One told me recently that he cannot stand the James Dysons of this world who are hoovering up agricultural land. However, they are concerned that there remains a tax incentive to invest in agricultural land, and I would be grateful if the Treasury reported on some of that modelling. For example, we know that 7% of wealthy claimants account for 40% of the cost of APR, but that means that 93% are costing only £382 million. It would be interesting to know how much money it would cost to slightly lift the thresholds or to address the concerns about life insurance.
Several hon. Members rose—
Sam Rushworth
I will not take any interventions, but only because other colleagues want to get in.
There are concerns, but I must say that when I met farmers in my constituency recently, they agreed with me that a bigger concern for them, as many colleagues have said, is profitability. The motion could have talked about economic stability for lower inflation and interest rates, and it could have talked about cutting rural crime, which would also cut insurance premiums. If I may say so, I welcome the Equipment Theft (Prevention) Act 2023 from the hon. Member for Mid Buckinghamshire (Greg Smith), but there needs to be secondary legislation.
Sam Rushworth
Thank you. Let us work together.
I am pleased that the Government are defending against floods and disease. I am pleased that we are committed to protecting standards in trade deals. I am pleased that we are committed to getting a veterinary agreement with the EU to cut red tape. I am pleased with the public sector procurement targets. However, we need to do something on rules about food labelling in order to prevent “farmwashing.” We also need to do more to strengthen farmers’ bargaining power with supermarkets. I am pleased with the changes to planning laws that will allow a lot of farmers to invest.
I would just say to my own party and to the Government that we need to bring these forward faster. Farming in my constituency is on life support. There is, in fact, good will towards this Government and what we are trying to do, but we cannot afford to wait another 18 months, particularly for the basic payment scheme transition. We need upland farmers to be able to access the sustainable farming incentives. I know the SFIs are in the pipeline, but they cannot wait 18 months to receive them.
Several hon. Members rose—
VAT: Independent Schools
Sam Rushworth Excerpts(2 months, 1 week ago)
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Sam Rushworth (Bishop Auckland) (Lab)
I have come here today to speak on behalf of the children and young people in my Bishop Auckland constituency. I recently spent half a day at an independent school in my constituency, where I spoke with the students, and I have also hosted them here in Parliament. I found them thoughtful and polite, and a credit to their parents and the school. I recognise the role that the school plays in my community. I think it is right that the school retains charitable status, which allows it to claim gift aid on donations and to reinvest surplus revenue without paying tax. I am fully committed to the school and to its fundraising efforts. That is because I want all children in my constituency, whether they attend state schools or fee-paying schools, to have the best opportunities to develop their talents and intellect, no matter their background.
I wish I could say the same of Conservative Members, but their actions in government tell a different story. At a recent roundtable with primary school headteachers in my constituency, I heard stories of school dinner debts of £1,000 per school because they are having to feed hungry children. I heard of children coming into school with wet uniforms because there is no glass in their windows. One teacher talked about having to support children who had experienced horrific abuse but were not getting support through CAMHS. I also heard about children who arrive at school behind where they should be because of the closure of Sure Start.
On social mobility, is it not the truth that the Conservatives scrapped child trust funds? Under them, Sure Start centres were closed down, school playing fields were sold off and the education maintenance allowance was abolished. Apprenticeships are down, youth services have been cut by 73% since 2010 and there is a five-year waiting list for CAMHS. A decade has been lost because every school budget has less funding per pupil today than it had in 2010. Is that not the truth?
Here is another truth—[Interruption.] Opposition Members do not like hearing it, but in the past 20 years, private school fees have increased by 55%. I checked Hansard to see whether we had a debate with them all expressing their concern for the state education sector and about the impact of that increase, but it turns out that when the increase is to make elite education even more elite, they are silent. I see no reason why private schools cannot absorb the cost.
Gregory Stafford
The hon. Gentleman talks about the elite, but does he understand the impact of the policy he is advocating, which is essentially that the elite, the rich, will still be able to afford independent education, while those who are making sacrifices to be there will be the ones who fall out, especially those with special educational needs?
Sam Rushworth
I was coming on to that, and if anybody in an independent school is struggling to cut their cloth accordingly as the state sector has done, I could introduce them to headteachers in my constituency who have had to do that because of cuts imposed by the previous Government.
I also suggest that independent schools look at social tariffs and other ways to raise revenue. Nobody wants to be doing this; this is not about the politics of envy. Conservative Members have so far opposed every measure that we are taking to increase revenue or cut spending, and perhaps they need to realise that that is why they are on the Opposition Benches and we are on the Government Benches, as we try to fix state education, which is essential for our children.
Winter Fuel Payment
Sam Rushworth Excerpts(3 months, 1 week ago)
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Sam Rushworth (Bishop Auckland) (Lab)
I have not written a speech—I have written down a few points—because, like many colleagues, I have spent the past week agonising over how to vote today. In the end, I decided to vote with my conscience, which meant that I voted with the Government. [Interruption.] Conservative Members laugh, but I will tell them why.
Today I listened sincerely to contributions from Conservative Members, and this is what I have learned. First, there were several interventions in which they criticised the Government’s efforts to improve the take-up of pension credit. [Interruption.] Well, they did—Members can go and read Hansard if they want to dispute that. There have been several criticisms of that, almost to the point that, when they talk about who is vulnerable, I wonder whether they have a blind spot for some of our most vulnerable constituents.
Secondly, I have learned about Conservative Members’ disdain for hard-working people, because we have learned that, in their spending plans, they intended to reject the pay recommendations of their own pay body.
Harriet Cross (Gordon and Buchan) (Con)
Does the hon. Member appreciate that some of the hardest working people are the pensioners we are now standing up for, and who we are trying to stop freezing in the winter to come and those ahead?
Sam Rushworth
I absolutely do, and Members may recall that I came to this House last week and asked the Chancellor a question about my own constituents. I represent the snowiest and coldest constituency in England, and I have had deep concerns about those pensioners. However, I have studied the detail and listened to pensioners in my constituency. In the last week alone, it has turned out that several people who have come forward to me expressing concerns about this policy are people who could be claiming pension credit but are not.
I want to make a broader point about the winter fuel allowance. The winter fuel allowance was introduced under the last Labour Government in 1997, when the state pension was £3,247 a year. If that had increased at the rate of inflation, today it would be £6,200 a year. Thankfully, it is more than twice that. [Hon. Members: “Because of us.”] Conservative Members say that it is because of them, but, again, they may want to look at the record. In fact, under both the previous Labour Government and the previous Conservative Government, the state pension increased at above the rate of inflation, and I absolutely welcome that. The winter fuel allowance, however, has not increased for 20 years. So the winter fuel allowance, in real terms, has become less and less year after year. The point I am making is that we need to consider our people. If the Conservatives’ argument is that, after 14 years in government, people on the full state pension are £100 away from death and destitution, what have they been doing for 14 years?
We need a new settlement for the economy, and this Government are actually answering the concerns of my constituents, who live in cold, stone-built, badly insulated homes, and who lost out when the previous Government chose to cut the funding available to insulate homes. This Government are setting up Great British Energy, which will help to cut bills over the long term. People are poor and struggling to pay their bills not because we do not give away enough taxpayers’ money in small pockets of benefits here and there. What we need are higher wages and better pensions, and I have been convinced by the Chancellor’s arguments that, under this Government, the pension will rise at or above the rate of inflation year on year, while energy bills will fall.
Finally, my constituents would not thank me if I did not take steps to stabilise the economy, because we need to get NHS waiting lists down and we need—
Oral Answers to Questions
Sam Rushworth Excerpts(3 months, 2 weeks ago)
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Rachel Reeves
I welcome the hon. Lady to her place. Pensioners in South Devon, in common with pensioners in all our constituencies, will receive a basic state pension that is worth £900 more than it was a year ago, and energy prices are lower this winter than they were last winter. Many of her constituents will be entitled to pension credit but, because of a failure to act by the last Government, are not currently receiving it. We all need to play our part in ensuring that everybody gets the help they are entitled to. We should all ensure that our poorest pensioners get that support from both pension credit and the winter fuel payment associated with it.
Sam Rushworth (Bishop Auckland) (Lab)
The village of Copley, in my constituency, is the snowiest in England and we have many pensioners in receipt of the basic state pension who are, none the less, in fuel poverty. They are not entitled to pension credit. They live in cold, stone-built houses. What assurance can the Chancellor give to those pensioners that this Government will help to warm their homes and ensure they do not struggle to heat their homes this winter?
Rachel Reeves
This Government have committed to insulate an additional 5 million homes during the course of this Parliament to ensure that energy bills are as low as possible, saving people money and ensuring that their homes are warmer. That will help my hon. Friend’s constituents in Copley and constituents across the country.