Agricultural and Business Property Reliefs: OBR Costing

Sarah Dyke Excerpts

Thursday 23rd January 2025 Commons Chamber

[James Murray]

Obviously, the Government put the highest priority on food security. That is why our policies set out to support it, and the farming sector more widely. The policy is one of many difficult decisions that we had to take in the Budget to balance the public finances, support public services and provide the economic stability we need for investment and growth.

[Sarah Dyke (Glastonbury and Somerton) (LD)]

I have heard from many farming businesses across Glastonbury and Somerton over the last few months, but one farm in Hurcot near Somerton recently wrote to me to describe the anguish and stress that the changes to the APR and BPR have caused them. As in the case of many farming businesses, their succession planning has focused on the primary landowner retaining the farm until death. How will the Minister explain to them that according to the OBR, the potential loss of their family farm business is likely to have little impact on the public finances, and that the policy will hit the oldest farmers hardest?

[James Murray]

The OBR’s publication yesterday sets out the costings that were in the October Budget. There is no difference between the costings set out in October and what the OBR set out yesterday. It simply showed more of the background behind how they calculated those costings, for transparency and so that people are aware. Indeed, it says in the report that that is done in an effort to improve the public debate and ensure that people understand what is behind the data published at the time of the Budget.

As I said to several Opposition Members, clearly this was one of many tough decisions that we took in the Budget to balance the public finances, but we also made sure that there is greater protection from inheritance tax under our proposed reform scheme than is available more widely.