Inheritance Tax Relief: Farms

Debate between Sarah Dyke and Helen Morgan

Monday 10th February 2025 Westminster Hall

[Sarah Dyke]

I thank the hon. Gentleman for making that point. Indeed, a recent survey shows that 95% of young farmers under 40 see mental health as their biggest concern. It is so significant.

I agree with farmers in Glastonbury and Somerton who feel that the thresholds have been set far too low. Some of them have told me that the figures that the Government have arrived at are just plain insulting. Many farms have a land value that is way in excess of any returns that can be earned on their land. As we have heard, farmers are capital-rich but asset-poor.

A dairy farm near Broughton has been a family farm for five generations and more than 100 years. The farmers there have told me that they already struggle to make a living as it is, without having to face the prospect of thousands of pounds each year being eked away from their business when they pass away. Their son wants to come into the farming business, but the proposed changes will destroy his chances of success. The changes will destroy everything that that family has worked so hard for throughout their lives, trying to secure the business for the next generation.

What is so galling is that the family farm tax fails to address the key issue of land being snapped up by wealthy individuals as a tax haven. Like others, I am desperately concerned about the actual number of farmers who will be impacted by the IHT changes. The Government resolutely refer to a figure of only 500. In my view, however, one farm is one farm too many. My point is: where has this figure of 500 come from? The Government claim that it is from the OBR, but the OBR says that is not the case. If it is not, perhaps the Minister can confirm today where this figure has originated from, and how.

[Helen Morgan]

My hon. Friend is doing an excellent job of summing up the debate. Lots of residential houses in rural areas such as mine have a couple of acres at the back, which people might use for hobby farming. They are not commercially viable farms. Does she agree that if the Treasury have taken those into account, it will have grossly underestimated the impact of this change?

[Sarah Dyke]

My hon. Friend is absolutely right. Many in the industry feel that that figure is a vast underestimate, with inflation likely to bring yet more farms over the threshold within the next generation.

I hope that the Government will look again at their modelling to see how they can protect family farms and target those who use agricultural land to avoid paying tax. The Liberal Democrats urge the Government to reconsider and raise revenue for public services more fairly by reversing the Conservatives’ tax cuts for big banks, increasing the remote gaming duty on online gambling profits and raising the digital service tax on social media companies and tech giants. We urge the Government to support British farming by investing £1 billion annually in profitable, sustainable and nature-friendly farming; reducing trade barriers with Europe, including with a comprehensive veterinary agreement; and strengthening the Groceries Code Adjudicator to protect consumers and farmers from unfair price rises while supporting our producers.

The food security of the nation is imperative to national security, but I fear that these latest measures may have a negative impact on it. It is deeply disappointing that after years of the Conservatives taking rural communities for granted, we now see more of the same from this Government. I urge the Minister to rethink his attitude to farming and rural communities. My colleagues and I on the Liberal Democrat Benches will be fighting tooth and nail to make sure that no family farm receives a hammer blow to their business from these changes. I echo my right hon. Friend the Member for Orkney and Shetland (Mr Carmichael) in urging the Minister to please pause and reconsider.

Improving Public Transport

Debate between Sarah Dyke and Helen Morgan

Thursday 5th December 2024 Commons Chamber

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

I beg to move,

That this House has considered the matter of improving public transport.

I begin by thanking the Backbench Business Committee for scheduling this important and timely debate. The Government have recognised the need for a modal shift away from cars to public transport, but we are still a long way from achieving this aspiration. The Government aim to change the way the railways and bus services operate in the UK, so we stand at a crossroads, making it increasingly important that we head in the right direction.

As Members will know, transport is a key contributor to climate change and the release of greenhouse gases. The transport sector is responsible for more than a quarter of total UK emissions and is the single most polluting domestic sector, but all public transport combined —buses, trams, shared mobility—accounts for only 9% of these emissions, with that number falling every year.

Improved public transport plays a huge role in delivering growth to local and regional communities, but all too often public transport is a barrier to economic inclusion in rural areas. We know that better local integrated transport systems deliver growth and opportunity—two of the Government’s five missions. Data from the Local Government Association found that a 1% improvement in public transport journey times could support a nearly 1% reduction in employment deprivation. The Government’s own return on investment tool shows that helping someone back into work provides a £3,500 boost to their income while the national Government benefits by £11,400 and wider society by £23,000.

[Helen Morgan (North Shropshire) (LD)]

My hon. Friend is making an excellent speech. Does she agree that the single biggest reason that people fail to access work in rural areas is public transport? The figures that she has given are not just numbers; it benefits somebody’s whole way of life if they can access work because they can catch the bus there.

[Sarah Dyke]

I entirely agree, and I will address that point in my speech.

Poor public transport compounds social ills, while the unreliability, inaccessibility and lack of integration in rural Britain prevent people from trusting that it can get them where they need to go when they need to go there and, crucially, that they can get home again. Somerset has the worst bus services in the country, forcing communities into isolation or locking them into expensive and polluting car usage. My constituents from areas that are currently served by the railways are concerned about the impact of building Old Oak Common and how it will disrupt travel to London. Many residents who travel from Castle Cary to London face up to a decade of disruption as a result of those works. I would welcome it if the Minister commented on how that will be mitigated.

I would also like to mention the future of South Western Railway, after the decision was made recently to renationalise the company in May 2025. It will be the largest train operating company ever to be nationalised in the UK, and that will happen before Great British Railways, the body that will oversee the public operator, is operational. In just a few months, the Department will, in effect, take responsibility for hundreds of millions of extra journeys, and my constituents travelling on the Exeter St David’s to Waterloo line from Templecombe or nearby stations are anxious about the future of the trains that they rely on. I would welcome it if the Minister commented on that, too.

I have spoken many times in this place about the reintroduction of a station in the Somerton and Langport area, and I thank the Langport Transport Group for its hard work and tenacity in trying to bring a railway station to the area after it lost its stations during the Beeching cuts of the 1960s. The Somerton and Langport area has the longest stretch of rail between London and Cornwall that is not served by a railway station. The Langport Transport Group prepared a proposal to the restoring your railway fund and won £50,000 to develop a strategic outline case alongside Somerset council, which they submitted in February 2022. Despite this huge effort, they have never heard back, even after I pressed both the former Prime Minister and the Transport Secretary in the last Parliament for an answer. Now that that scheme has been cancelled by the Chancellor, local residents feel that they are in limbo.

Having a railway station in the Somerton and Langport area makes so much sense. It would serve the 50,000 people who live nearby who currently are not served by the railway line that runs right through their community. Nearby stations such as Castle Cary, Taunton, Bridgwater and Yeovil Junction are all at least 12 to 15 miles away. There is no direct bus to Castle Cary or Taunton, where it is then a hike to the nearest station. That is hardly an incentive to travel, and it illustrates the lack of integrated public transport in Somerset—a topic I will speak on later.

A railway station in the area would do more than connect residents to the rail line. It could also boost the local economy, bringing in more visitors. We have seen nearby passenger numbers at Castle Cary—the official railway station for the Glastonbury festival—jump massively in recent years, from 152,000 in 2002-03 to 251,000 in 2017-18. I may have a slight bias, but there are so many reasons for people to stop and visit the area, if only there were a train station. For example, there is the River Parrett trail, a scenic 50-mile walk that is home to some of lowland England’s most beautiful and unchanged landscapes.

As I mentioned, the proposal was cast into doubt after the Government announced the cancellation of the restoring your railway fund in the summer. We are still waiting for an update on what will happen to the project. I would welcome the Minister’s comments regarding the Somerton and Langport railway.

Rural Communities: Government Support

Debate between Sarah Dyke and Helen Morgan

Tuesday 28th November 2023 Westminster Hall

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

I beg to move,

That this House has considered Government support for rural communities.

It is a great pleasure to serve under your chairmanship, Sir Charles. This is the first debate that I have held. I feel it is important to highlight the challenges facing many of our rural communities. The Government must recognise the financial support needed, especially for local authorities to deliver essential frontline services.

To begin, I will explain the challenges that affect rural communities, and how their rurality provides specific complications that are often missed or ignored by central Government. People who live in rural areas face added living costs known as the rural premium. The Joseph Rowntree Foundation found that they typically need to spend around 10% to 20% more on everyday essentials than their urban counterparts. The rural economy is 19% less productive per worker than the national average, which is reported to cost the UK economy £43 billion per year. Employers face difficulties recruiting staff as rural areas generally have poorer public transport connections, resulting in employees relying on private vehicles and facing higher fuel expenditure.

The Government recognised the need to assist rural areas with the cost of travel and introduced the rural fuel duty relief in 2001, and it was extended again in 2015. However, it extends only to the most remote parts of the UK. I urge the Government to listen to Liberal Democrat calls for the scheme to be extended to cover most rural areas in the UK, including Somerset.

Fifty-three thousand people live within 10 km of Langport and Somerton, yet they are without access to a train station. Travellers have to drive 24 km to Taunton or 25km to Castle Cary. For those without access to private transport, the travel time by bus between Langport and Taunton is 51 minutes, and for Somerton it is 62 minutes. There is no direct connection to the rail by bus between Langport and Somerton and Castle Cary, with public transport requiring an interchange. The shortest journey time is therefore around one hour and 17 minutes. Bus routes in my constituency are also under threat, with four routes currently without guaranteed long-term funding.

[Helen Morgan (North Shropshire) (LD)]

I congratulate my hon. Friend on securing her first Westminster Hall debate. She is making an excellent speech. Does she agree that bus services are important not only for getting people to train stations but for preventing social isolation and getting people to school and to the doctors and so on?

[Sarah Dyke]

I absolutely agree with my hon. Friend that rural isolation is a very important matter.

I received a phone call today from a constituent who cannot get to their medical appointments. The 58 bus service is currently under threat, and if that closes they will not be able to move around the constituency and access the vital services they need. It is clear that sparse public transport is a constant constraint to regeneration of the local economy.