Farming and Inheritance Tax

Sarah Dyke Excerpts

Wednesday 4th December 2024 Commons Chamber

[Robbie Moore (Keighley and Ilkley) (Con)]

This morning, ordinary farming families across all four corners of our United Kingdom will be waking up to another day of hard graft. If it is anything like my upbringing, the kids will be out early helping their parents feed the livestock, dad might be milking the cows or perhaps out crop-walking with the agronomist, rightly concerned about the impact of recent wet weather, and mum will no doubt be battling the elements, keeping the whole operation running smoothly and somehow still finding time to make sure everyone has their wellies on the right feet.

Anyone with experience of rural life understands all too well the constant struggle of keeping a family farm afloat. It is tough work—long hours, barely any room to breathe and a financial struggle for many. As I have said many times in this House, our farming families are not multimillionaires; many will be striving to make a profit, but a lot of our families will not be, with many of our farmers earning less than the minimum wage. But today these farmers will also be waking up with the crushing reality that they now face losing everything they have ever worked for—everything that their mum or dad or the generations before them worked for—all because of this Labour Government’s disastrous farm tax.

I have spoken to hundreds of farmers in the days since the Budget, as have the shadow Secretary of State and many colleagues sat behind me, and we have learned that Labour’s catastrophic Budget really is an anxiety that very few farmers were ready for. We have heard about many of their concerns in the debate. My hon. Friend the Member for Weald of Kent (Katie Lam) spoke about those, such as Ross in her constituency, who may have ill health and other challenging circumstances, who do not have time to plan.

My right hon. Friend the Member for Braintree (Mr Cleverly) talked about farming accountants raising incredibly distressing calls from farmers. My hon. Friend the Member for Bridlington and The Wolds (Charlie Dewhirst) and my right hon. Friend the Member for Stone, Great Wyrley and Penkridge (Sir Gavin Williamson) raised the impact on the wider rural economy and the whole of the UK production sector. My hon. Friend the Member for North Cotswolds (Sir Geoffrey Clifton-Brown) and my right hon. Friend the Member for South West Wiltshire (Dr Murrison) rightly mentioned the challenges the whole Budget will have on our farming, including the dire consequences of employer national insurance.

My hon. Friends the Member for Mid Norfolk (George Freeman) and for Broxbourne (Lewis Cocking) rightly highlighted the concerns of family farms that will have been in the family for many generations facing being split up. My hon. Friend the Member for Gordon and Buchan (Harriet Cross) and my right hon. Friend the Member for Salisbury (John Glen) rightly challenged the Government’s own data and figures and lack of understanding of values.

But the core issue is that this is all about trust. Before the general election, Labour looked our farmers in the eye and told them continually that there would be no changes to inheritance tax. Indeed, the hon. Member for High Peak (Jon Pearce) even at a hustings before the general election classified this as Conservative scaremongering, and many Labour MPs now sitting opposite proudly stood with placards saying they would back British farming. Yet here we are, 35 days after Labour introduced the family farm tax and 15 days after thousands of family farmers rallied in London, and there is not a shred of contrition from the Ministers sitting opposite—not even the slightest bit of empathy for those ordinary farming families who know the value of their businesses and who have looked at the detail and have been hit hard by Labour’s family farm tax—and that is because their level of arrogance is stark, as we have seen in this debate.

The hon. Members for Ribble Valley (Maya Ellis), for Peterborough (Andrew Pakes) and for Forest of Dean (Matt Bishop) could not even mention one farmer in their constituency who supported this policy. The hon. Member for North East Derbyshire (Louise Jones) seems to be convinced that this will impact only the wealthiest. The hon. Member for Hexham (Joe Morris), who I believe is not in his place, and the hon. Member for North Northumberland (David Smith) both say they have engaged with their farmers and heard their views, but then failed to mention anything in support of scrapping Labour’s disastrous family farm tax. No wonder their farmers are up in arms.

The hon. Member for Bassetlaw (Jo White) turned up but failed to mention anything about inheritance tax relief. And the hon. Member for Penrith and Solway (Markus Campbell-Savours) rightly highlighted Labour’s broken promises. I pay tribute to him for mentioning it, but will he have the courage to commit, to back our farmers and to vote with us for scrapping Labour’s family farm tax?

The hon. Member for Rugby (John Slinger) spoke, made no reference at all to inheritance tax, but did mention the Budget. I can tell him that after the Budget, in one single week ending 8 November, 1,022 companies filed to shut down. I also point out that we saw 1.1 million more businesses between 2010 and 2023. The NFU, the CLA, the TFA and farming organisations up and down the UK say that Labour’s Budget will tear apart British farming, UK food production and our domestic food security agenda. The Central Association of Agricultural Valuers, whose members’ job it is to determine the value of farms, says that the Government have got their figures completely wrong. Those very same tax experts who the farming Minister rolled out in defence of this policy just a few weeks ago have now gone on to criticise it.

The Government are looking incredibly isolated. Public support for this policy has been wiped out since it was announced, leaving Labour MPs as its only defenders. Up to now, they have all failed to publicly call out our city-dwelling Prime Minister and Chancellor’s callous Budget. Now, we have even had the Exchequer Secretary, the hon. Member for Ealing North (James Murray) being wheeled out to open this debate, as the Government’s last remaining hope to try to defend this disastrous attack on our farming families. The Government have lost the experts, they have lost the industry and it now seems they have lost their own Secretary of State from the Front Bench—it is great to see that he has just walked into this debate and turned up—and it is weak and embarrassing.

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

The shadow Minister says that Labour Members do not know any farmers—I do. I am proudly a sixth-generation farmer’s daughter. My brother still farms, but for how much longer I do not know. My dad died exactly a year ago today. My mum is a partner in the business, and she is now 81. My brother is not married and he lives in a rather lovely farmhouse, but we do not know for how much longer that will be. He is worried about his farm. He is worried that he will be the one to close the gates for the very last time. Does the shadow Minister agree that we must move to a compromise, a transition and a clawback mechanism? Let us look to incentivise our farmers, rather than this punitive tax.

[Robbie Moore]

The hon. Member highlights the devastating consequences that Labour’s Budget will have on our family farms.

Many questions remain unanswered, so with the opportunity of Treasury and DEFRA Ministers sat side-by-side, I will put a few to them. First, if this is a unified Government, why did the Treasury tell DEFRA about this policy only the night before the Budget? Secondly, why did Ministers not take into account claimants of BPR in the limited datasets they have released? I am happy to give way to the farming Minister if he wants to answer that specific point, because he has not answered it to date. Thirdly, why do the Government believe it unnecessary to take into account the size of family farming businesses when determining the impact of their £1 million cap on agricultural property relief and business property relief? Finally, for the sixth time of asking in this place, why has no detailed economic impact assessment for this policy ever been produced?

Our position is clear: we back our British farmers, and the Conservative party will reverse this family farm tax. That is exactly why we will force this vote today, but we cannot do it alone. I therefore conclude by reaching out to Labour MPs across the Chamber. I know there are some sitting behind the Front Bench who have first-hand experience of rural life, who understand the consequences of this family farm tax and who are saying in private that the Government have got this terribly wrong. I say to those Members that it is not too late to save our farming families from this cruel farm tax and from those faceless multinational corporations that will no doubt sweep up any land that is forced to be sold as a result of this policy. It is not too late to join our British farmers, many farming organisations across the UK and the tens of thousands of farmers who were in Whitehall just a few weeks ago. Many Labour Members committed to back British farming before they entered this place, and now is their chance to prove it.

British farmers are watching, and Labour MPs have a clear choice either to back British farming and scrap this catastrophic tax or to put party politics before the voices of their constituents and farmers. I urge everyone in the House to do the right thing: to put British farmers first and vote against Labour’s family farm tax.

National Insurance Contributions (Secondary Class 1 Contributions) Bill

Sarah Dyke Excerpts

2nd reading
Tuesday 3rd December 2024 Commons Chamber

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

I rise to share my concerns about the unintended consequences of this tax hike on small businesses, GPs, social care providers and farm businesses. The arguments about the damage that the previous Government left are well rehearsed, and significant effort is needed to rebuild public services and repair public finances, but this measure will do just the opposite. As GPs and the vast majority of care providers are private, they will not benefit from the compensation that the Chancellor will give to the NHS and other public sector employers to cover the cost of this tax increase.

Langport surgery in my constituency told me that it faces an additional cost of £45,000 a year, due to the national insurance rise. It said:

“at a time when general practice is facing workforce shortages, higher costs could make it even harder to hire and retain staff, directly impacting patient access”

to good-quality care. The impact on social care providers could also be severe; six in 10 of the UK’s care home beds are provided by companies that could go bankrupt if they experience even a mild economic shock. I have been discussing these difficulties with Wincanton Cares, a support and advice group for people needing care in south-east Somerset. It is concerned that care home closures may well happen, as the funding model is so precarious.

I am also worried about the impact that the measure could have on small businesses, which are the foundation of the Government’s growth agenda. In advance of Small Business Saturday, I have spoken to many businesses in Glastonbury and Somerton, including Topline Glass based in Ilton. It described the Budget as a triple whammy of increased NICs, wage rises and business rate increases. The OBR has estimated that the increases to employer NICs will reduce potential output by 0.1%, while the costs to businesses will lead to lower wages and profits. The Government should have instead listened to Liberal Democrat calls to raise money through fairer tax changes, such as reversing the Conservative tax cuts handed to big banks, increasing the digital services tax to 6%, doubling the rate of remote gaming duty paid by online gambling companies, and fair reform of capital gains tax, so that the 0.1% of ultra-wealthy individuals pay their fair share.

Many farming and agricultural businesses will also be hit by this tax rise. In addition, farming businesses will now be subject to increased NICs, further stretching their budgets. The CEO of the Nature Friendly Farming Network has stated that the increase in national insurance will be a big concern for businesses that rely on a large workforce to pick, process and package food. As farming yields very slim returns, those added costs will likely be passed on to consumers, pushing up food prices and disproportionately affecting those least able to afford high-quality, UK-produced food.

The likely increase in the cost of UK food would inevitably lead to a reliance on cheaper imports, particularly from countries with lower production and welfare standards, undermining UK farmers and potentially increasing climate-related harm elsewhere. Driving down food security and pushing up prices is damaging to national security. The Government have an opportunity to look again at these measures that damage British farming. If they will not, they will not be forgiven.

Economy, Welfare and Public Services

Sarah Dyke Excerpts

Monday 22nd July 2024 Commons Chamber

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

It is an honour to return to the House and to represent residents of this new constituency.

Constituents tell me that the issues that matter to them most are health and social care, rural affairs, housing and local services. About 2.5 million people are out of work with long-term sickness, so the challenge for this Government is to fix the health and care crisis, because a healthy economy requires a healthy NHS. This new Parliament presents an opportunity to work collaboratively to fix many of the issues plaguing my constituents.

There is a dental provision cavity in Somerset. There are no dentists in Glastonbury and Somerton taking on new NHS patients. One practice in Street has not had an NHS dentist in post for 18 months, although the job has been advertised continuously. I am sure that all Members have heard many heartbreaking stories from people suffering in dental agony. I recently spoke to Ian from Langport, who told me that he was unable to access the crucial NHS healthcare that he needs. His only option is private dental treatment, which will cost him more than £3,000. For Ian and for so many others, this is simply unaffordable. It is no wonder that residents are left open-mouthed when they hear that £8 million was underspent on NHS dentistry in Somerset last year alone. NHS dental contacts need reform urgently, and the recruitment crisis must be unblocked.

People are also waiting longer to see a GP. Last year the number of four-week waits rose by 49% in Somerset. The number of GPs must increase in order to guarantee patients the right to see a GP within a week, or within 24 hours if the situation is urgent. By improving local frontline services, we will reduce pressure on our hospitals. I was delighted to visit a rural health hub during the last Parliament, and I call on the Government to maintain support for such hubs because they have proved that they offer flexible and accessible healthcare provision for our rural and farming communities.

This week is Farm Safety Week, and it marks the 10th anniversary of the Farm Safety Foundation, an organisation that I am proud to work alongside to highlight the key challenges faced by farmers and farm workers every day. People working in agriculture are 21 times as likely to be injured at work compared with the national average, while 95% of farmers under 40 agreed that poor mental health was the biggest problem facing the industry today. The agricultural sector is crucial to the rural economy, and farming is vital to UK food security, but inflationary pressures continue to damage farm businesses, and the mismanaged transition from the basic payment scheme to environmental land management schemes is forcing many farmers out of business.

Food security also requires fair access to international markets, but the last Government’s botched trade deals damaged that. Those deals undermine our nation’s health and our environmental and animal welfare standards, and they must urgently be renegotiated. To protect the rural economy, there needs to be fairness in the food chain, and the groceries code adjudicator needs more teeth. That would support our farmers and protect consumers from unfair price rises.

Glastonbury and Somerton is home to some of the lowest-lying land in the country, so a serious commitment to food security requires a robust approach to flood management. Of course, agricultural land will always play a vital role in preventing flood damage to urban areas, but this cannot be at the expense of agricultural businesses, which need to be properly compensated for the sacrifices they make. Ensuring that water is managed correctly also means managing the nutrient load of rivers and lakes. We require legislation to ensure that nutrients enrich and improve our soils, rather than being leeched away into our rivers, which adds to the pollution crisis.

Making such reforms would unlock the 18,000 homes in Somerset that already have planning permission and are currently waiting to be built. The new Government have pledged to make that possible, and I welcome the new Secretary of State for Housing’s recent commitments on this issue. I eagerly wait to hear the Government’s plans, because there is a serious shortage of homes and a solution is desperately needed. However, I am clear that homes must be built in the right places and to the best possible environmental standards, and they must be delivered with the infrastructure that communities so desperately need. After years of an out-of-touch Conservative Government taking us all for granted, I am looking forward to having the opportunity to work together to deliver the ambitious changes we desperately need.

Royal Bank of Scotland Branch Closures

Sarah Dyke Excerpts

Tuesday 14th May 2024 Westminster Hall

[Deidre Brock]

Yes, Sir Charles. A number of people expressed interest in being here and talking about branch closures in their areas, so I have allowed for that in my timing.

I absolutely agree with the hon. Member for Strangford (Jim Shannon) and I will make some points about that later. The impacts on rural areas are particularly stark and I am very much aware of them, having been part of the Scottish Affairs Committee that conducted an inquiry.

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

In my constituency, Frome—with a population of 30,000 people —will lose its last bank. It follows in the footsteps of other market towns in my area: Castle Cary, Martock and Wincanton. Many of my elderly constituents are very worried that they will lose their physical, face-to-face contact with their banks. Does the hon. Member agree that, to combat the loss of bank branches, we must support communities by triggering the development of community banking hubs that safeguard people’s right to face-to-face contact with their banks, particularly in rural areas?

[Deidre Brock]

Absolutely, and I will make some points about that later.

I say, with a heavy dose of sarcasm, that banks cannot be expected to cut their profits and serve their customers when they have shareholders to please, even when—in the case of RBS—taxpayers bailed them out when they needed it and still own a third of the business. How often can we in this place bemoan bank branch closures while the Government sit on their hands and refuse to meaningfully intervene? The speedy decline in branches is alarming: almost 6,000 have gone, across the UK, at a rate of 54 a month since 2015. Do we just accept sleepwalking into a cashless society and the deepening of the digital divide? Should we all be forced into using systems that may go against our very human preferences for face-to-face services just because it is cheaper for the banks? What kind of society do we want to be? A society that looks out for everyone, or a society where markets rule and only the fittest survive?

--- Later in debate ---

[Bim Afolami]

I am very happy to speak with the hon. Lady about the challenges that Northern Ireland has in this regard—the statistic she outlined speaks for itself. In relation to the criteria, this is an industry-led set of rules—the Government do not determine which banks’ branches open or shut—but there is definitely much more work that we can do, working with the industry, to see whether we can improve things.

The industry has come out, through UK Finance, and said that, over the next 18 months, more than 225 banking hubs will be opened. That will mean a rapid increase in the speed at which banking hubs will open compared with recent years, and the industry is committed to that. However, I am very happy to have a conversation with the hon. Lady about Northern Ireland in particular.

To respond to the hon. Member for Edinburgh North and Leith regarding the Equality Act 2010, like all service providers, banks and building societies are indeed bound by the Act, and it is not our judgment that they have somehow contravened it. They are bound to make reasonable adjustments, where necessary, in the way that they deliver their services.

In the time remaining to me, I would like to talk a little bit about banking hubs in particular, because I think they have been a unique proposition and have proved, in most cases, very popular where they have appeared. The issue has been, “Let’s get them faster and let’s have more of them.”

[Sarah Dyke]

I have already mentioned that, in my constituency, many banks have been closing and many market towns have been left without a bank, but many businesses are also really concerned about the lack of banks in their areas. People still want to use cash, and businesses are still taking cash, but they now need to travel many miles across the constituency at the end of the working day to deposit their cash safely. Will the Minister comment on how his Department proposes to manage the negative impacts on some of our vibrant businesses—such as those in my constituency—that make up our villages and towns, which will now have to travel much further to deposit their cash safely?

[Bim Afolami]

My response is, in part, to repeat what I have already said, which is that we were the first Government to legislate on access to cash in law, through the Financial Services and Markets Act 2023. That sets out that people should be no more than three miles away from access to cash. In relation to banking hubs and the ability of small businesses to use bank branches or a banking hub, that is why banking hubs are so important. These hubs help people and businesses to withdraw and deposit cash, pay in cheques, and check their balances through the post office counter. They also provide a community banker who can help people with wider banking services, from making a transfer to providing support for fraud and scam victims.

The hubs are deployed by Cash Access UK—the company owned and funded by nine major high street banking providers—in response to an assessment of the community’s cash needs by Link, the co-ordinating body that sets the criteria. As I have already explained, I think that in many instances that criterion needs to be changed by the industry, and I hope that it will do so. To ensure that there is no gap in the provision of services, industry has committed that, if a hub is recommended, it will not close the branch that it replaces for up to 12 months, until that hub is open. If there is a delay beyond that, a temporary hub will be put in its place.

Public Services in Cornwall: Funding

Sarah Dyke Excerpts

Monday 15th January 2024 Commons Chamber

[Steve Double (St Austell and Newquay) (Con)]

It is a great pleasure to bring this debate to the House this evening. It is a particular joy that it has come so early, because it means that I have two hours to talk about my favourite subject—Cornwall. The whole House will be aware that I view Cornwall as a very, very special place—a unique place in many ways. I always count it as an incredible privilege that I was born and raised there, have lived and worked there my whole life, have raised my family there, and now have the joy of seeing my grandchildren grow up there as well.

Clearly, I am not the only one who views Cornwall as a very special and wonderful place. We have seen significant numbers of people choosing to move to Cornwall in recent years, and, of course, around 5 million people every year come on holiday. It is very easy to have that image of Cornwall as a wonderful place to go on holiday—we all have picture postcard images—without understanding that, behind many of those images, individuals, households and indeed businesses face a number of very real challenges.

We are a relatively low-income economy, with higher than average house prices and a number of other factors that make life challenging for many people. It is not just households and businesses that face challenges in Cornwall, but those who seek to deliver our public services as well. I think that we would all agree in this place that funding for public services should be based on two factors: the need or the demand for that service; and the cost of delivering that service locally. I hope to present to the Minister, whom I am pleased to see in his place, some of the issues that are unique to Cornwall. I particularly want to mention the combination of factors that mean that we face of number of very real challenges when it comes to delivering public services in Cornwall. There is a need, I believe, to review and reflect on those challenges when it comes to the allocation of funding for our services in Cornwall.

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

I congratulate the hon. Member for St Austell and Newquay (Steve Double) on securing this important debate. As a fellow south-west MP, I know that what he is referring to is also reflected in Somerset. Somerset Council is struggling to revive discretionary public services, which it wishes to do because of the current unfair funding method. In the last financial year, rural councils could budget only £77 per head on discretionary services, while urban areas spent more than double that. Does the hon. Member agree that more needs to be done to provide our rural constituents with the services they deserve?

[Steve Double]

I wonder whether the hon. Lady actually read the subject of the debate, which is specifically about funding and delivering public services in Cornwall. She can make her points in her own debate about her part of the world; I am here to talk about Cornwall this evening.

There is a need to reflect on these challenges and this combination of factors that we face in Cornwall when it comes to the funding that we receive for our public services. My first point is about geography. Cornwall has a unique geography within the British Isles. We are long and narrow peninsula, unlike any other part of the country. We are almost an island. As I have said in this place before, if the River Tamar was 2.5 miles longer, we would actually be an island, and there is many proud a Cornishman who has talked about taking their shovel and finishing the job to create an island. The challenges we face often have more in common with those of an island than with being a part of the mainland.

Oral Answers to Questions

Sarah Dyke Excerpts

Tuesday 19th December 2023 Commons Chamber

[The Chief Secretary to the Treasury (Laura Trott)]

I will write to the hon. Gentleman.

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

T6. Mr Speaker, I wish you, those across the House and my constituents a very merry Christmas. People in rural areas suffer more than their urban counterparts because of the rural premium they encounter in their daily lives. With food inflation at around 10%, people in Somerton and Frome are once again facing a choice between heating and eating. What recent assessment has the Department made of the effect of inflation on food prices?

[Laura Trott]

I know that the hon. Lady will have welcomed the most important change to cost of living pressures, which is inflation coming down. In addition, we have had the cost of living payments this year, and also benefits going up by 10.1% this year and by more than the expected level of inflation next year. We as a Government have done all we can to support people and will continue to do so.