Farming

Seamus Logan Excerpts

Thursday 13th March 2025 Commons Chamber

[Seamus Logan (Aberdeenshire North and Moray East) (SNP)]

I thank the right hon. Member for Orkney and Shetland (Mr Carmichael) for securing the debate.

“The future of farming” seems an apt title for this debate, given the grave concerns held by the farming community the length and breadth of Scotland and beyond over the Government’s proposed tax reforms to APR and BPR, and the inheritance tax coming in next year. The arguments against the proposals have been well rehearsed in this place. They have been put to Ministers time and time again, here and in other forums. A consistent theme, however, seems to be their complete inability to listen to, hear and act on those concerns. I do not blame the Minister in his place today; I blame Treasury officials. I think the Minister is an honourable man who is trying to do a good job for farmers, but I do not think he is being listened to by others. Even on the Government Benches, I understand that around 40 MPs representing rural areas have made their concerns known to the Treasury, and are calling for the £1 million threshold to be raised to protect smaller family farms, and for an amnesty for older farmers and those with serious health problems. That seems a reasoned and reasonable approach to me. But as I say, I do not blame the Minister for any of those things.

Research by farming associations has already called into question the accuracy of the data from which the £1 million threshold was chosen. Surely it is not outwith the wit of Treasury officials to return to their numbers and think again. But rather than back the Treasury into a corner here, let me offer the Government a very sensible and reasonable way out of this impasse.

Farming representatives, including NFU Scotland, which I met recently, are suggesting a clawback mechanism as an alternative approach to generating the required tax revenue. The mechanism would allow 100% relief on qualifying assets, but suggests charging IHT on all those assets if subsequently sold by the beneficiary within an agreed timeframe—they suggest seven years. The NFU says the proposal will meet the UK Government’s aims of raising revenue; avoid penalising elderly farm owners and risking breaking up family farms; prevent stifling investment in food production and environmental stewardship; and take away the incentive to use APR and BPR solely as a way of avoiding tax liabilities. It would also target individuals and corporations who are gaming the tax system by using the land to shelter from their liabilities. The Government do not have to cave in on this—there is time. They should simply agree to enter a new round of consultation aimed at honing their proposals, engage with industry representatives and consider how there might be some compromise.

Finally, I want to finish by referencing a discussion I had with the Minister recently on the need to kick-start the trade in seed potatoes, which has been so damaged by Brexit. The Government are making positive moves in the reset with the European Union. I hope the issue will be high on their priority list, to revive Scotland’s important seed potato industry.