Rural Communities

Scott Arthur Excerpts

Wednesday 7th January 2026 Commons Chamber

[Sarah Dyke]

Renewable energy is vital for the future of this country. However, we must ensure that it is put in the right place and is fit for the future. Putting renewable energy on our best and most versatile land certainly is certainly not the way the Liberal Democrats would go about it. However, there are places for renewable energy. I endorse a lot more solar on rooftops. That is certainly something that we can do for the future. I thank the right hon. Gentleman for his intervention.

The impact of the family farm tax has already been felt. Chris, who farms at Wheatlawn farm near Babcary, wrote to me recently. He is a fifth generation farmer with terminal prostate cancer, and he described the family farm tax as a dark “shadow” that has been hanging over him for the past year. He was terrified of leaving his son with a huge, unpayable tax bill. Although the financial burden might be avoided for now, Chris was still keen to point out that what little trust he may have had in the Labour Government has been lost because, in his words, the Labour party simply does not “understand the countryside”. Ministers are fond of saying that British farming is the best in the world, and they are right, but too many of them do not know why. The reason is farmers like Chris and the tradition of family farming in the UK.

Although common sense has finally prevailed, does the Chancellor recognise the damage that this whole dreadful episode has done to the rural economy? When will the Treasury publish an assessment of the impact of this policy on the agricultural sector? While the partial climbdown has limited the damage to the industry, it does not eradicate it entirely. Many farmers will still find themselves facing huge tax bills while operating on narrow profit margins. We Liberal Democrats were the first party to call out and oppose the unfair family farm tax after the disastrous 2024 Budget, and we will continue to stand alongside the farming community and demand that the Government scrap this unfair tax in full. If they refuse, we will submit amendments to the Finance Bill to bring it down.

Alongside producing food, farmers are the guardians of the countryside, but they cannot be green if they are in the red. They are critical to meeting DEFRA’s legally binding targets to reverse nature’s decline, so they need time to adapt and clarity on what to aim for to achieve profitable and nature-friendly farming.

As the Government prepare their new farming road map, we Liberal Democrats encourage them to make it practical, not theoretical. The UK should align with our partners in the EU, who are maintaining direct common agricultural policy payments to farmers until at least 2035. We must ensure that English agriculture is not an outlier, especially given that Scotland, Wales and Northern Ireland are also maintaining an element of direct support. Farmers in England are left with agri-environmental schemes that, under the Labour Government, are no longer comprehensively open to farmers.

This is the first time in 80 years that a Government have not provided support to produce food. That is a Tory policy being continued by Labour. It is absolute madness to disincentivise food production. I hope that today is an opportunity for the Conservatives to apologise for failing to treat food as a public good. We must ensure that British farmers have a fair deal. We can do so by adding an extra £1 billion to the farming budget, guaranteeing high standards in all future trade deals, renegotiating the Australia and New Zealand trade deals, enforcing point-of-origin and point-of-production labelling on animal-derived products, giving the Groceries Code Adjudicator the teeth it needs to protect both customers and producers, and securing frictionless trade with Europe through new veterinary and plant health agreements.

[Dr Scott Arthur (Edinburgh South West) (Lab)]

I think it is great that, rather than just criticising the Government, the hon. Lady is outlining a set of policies that the Lib Dems would take forward to support farming communities. What is not clear, however, is how it would all be funded. How much would that list of policies cost, how would it be funded, and what would be the impact on the economy?

[Sarah Dyke]

The Liberal Democrats have set out a number of different policies to help shape that £1 billion investment. Being part of the customs union would certainly be part of that, and it would bring in billions extra, as the hon. Gentleman well knows. There is much more we can do.

Nothing has done more to increase the cost of living and of farming and to reduce farm incomes than the Conservatives’ botched Brexit, which made it more expensive and burdensome for British farmers and fishers to export to their main markets in the EU, beleaguering their workforces and undermining their protections for animal welfare and the environment. The Conservative Government set a dangerous precedent for future trade agreements, given what they negotiated and how they went about it. They stripped away parliamentary scrutiny and forced terrible deals through, which gave unfair advantage to imports from countries with poorer standards over the higher-quality standards of British farmers.