Oral Answers to Questions

Steve Reed Excerpts

Thursday 19th December 2024 Commons Chamber

[Sir John Whittingdale (Maldon) (Con)]

3. What assessment he has made of the impact of the autumn Budget 2024 on family farms.

[The Secretary of State for Environment, Food and Rural Affairs (Steve Reed)]

May I take this opportunity to wish a very merry Christmas to you, Mr Speaker, and to the hard-working House staff?

The Government have committed £5 billion to the agricultural budget over the next two years. That is the biggest budget for sustainable food production and nature recovery in our history. We are also investing £60 million into the farming recovery fund to support farmers affected by unprecedented extreme wet weather last winter. We understand concerns about changes to agricultural property relief, but the majority of those who inherit farmland after a death and claim relief will not be affected by the changes.

[Sir John Whittingdale]

Has the right hon. Gentleman seen the latest research, which shows that 75% of commercial farms will exceed the £1 million threshold and therefore will become liable for inheritance tax? Just to give him one example, a family in West Hanningfield in my constituency who have farmed for five generations say that they face a potential inheritance tax bill of £1.5 million. They say that it will put an end to all that has gone before and end the aspirations of their family. I plead with the Government to look at this again.

[Steve Reed]

Of course we hear the concerns, but I say to the right hon. Gentleman that in the last year for which we have actual claims data available, over 75% of claimants would not be affected. Of course, most farms, like every other business, can do succession planning in the usual way so they do not have to pay any more than they need to.

[Josh Fenton-Glynn (Calder Valley) (Lab)]

Merry Christmas, Mr Speaker. Our hard-working farmers across Calder Valley want to earn a living from farming, not use their land to avoid tax. After 14 years of neglect by the last Government, which undercut farmers in trade deals, the sector is, however, becoming increasingly unprofitable. I welcome the Labour Government’s new deal for farmers and the 25-year road map to making farming profitable again. Can the Secretary of State assure me that Calder Valley farmers will get their fair share in this new deal and in the new improved countryside stewardship higher-tier scheme next year?

[Steve Reed]

My hon. Friend will be aware that the shadow Secretary of State, the right hon. Member for Louth and Horncastle (Victoria Atkins), and the former Prime Minister, the right hon. Member for Richmond and Northallerton (Rishi Sunak), keep telling farmers that they are not in it for the money. We know that they are. They are businesses that need to make a profit, and our new deal for farmers, which includes increasing supply chain fairness, is intended to make farms profitable and successful for the future in the way they were not under the previous Government.

[Mr Speaker]

I call the shadow Minister.

[Dr Neil Hudson (Epping Forest) (Con)]

The autumn Budget put family farms in jeopardy. Those farms also need biosecurity to protect their futures. With avian influenza spreading, bluetongue still with us and African swine fever at our doorstep in Europe, biosecurity is national security. Central to that is the Animal and Plant Health Agency, whose headquarters in Weybridge needs a £2.8 billion redevelopment to protect farming and animal, plant and public health. The Conservative Government rightly started that work with £1.2 billion committed in 2020. I note that Labour has committed £200 million to support that transformation, but that will not touch the sides. Will the Secretary of State confirm that the Government will complete the project in full, as the Minister for Food Security and Rural Affairs called for in opposition, and commit the remaining £1.4 billion to protect our nation’s biosecurity and prevent an animal disease outbreak catastrophe?

[Steve Reed]

I am grateful to the hon. Gentleman, who raises an important point. However, I find it a little ironic that Conservative Members are calling for this Government to commit to spending that their Government never committed to. The Weybridge biosecurity facility is so dilapidated that it faces obsolescence by the early 2030s—that is the legacy that the Conservatives left. The £208 million that we have committed will start the process of improving those facilities, and through the spending review phase coming forward, we will consider how we can commit further funding to ensure biosecurity for farmers, which the Conservatives absolutely failed to do.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Tim Farron (Westmorland and Lonsdale) (LD)]

Merry Christmas to you, Mr Speaker, and to all here and beyond.

Farmers in my communities and across the country are genuinely devastated by the Government’s family farm tax, which will affect many in my patch who are on less than the minimum wage, and by the 76% cut in the basic payment next year. Perhaps what dismays farmers across our country and in Westmorland even more is that the overall agricultural policy of this Government and their Conservative predecessors is to actively disincentivise farmers from producing food, despite the fact that this country produces only 55% of the food we need. That is a dereliction of duty by both main parties, and a threat to national security. What plans does the Secretary of State have to change his policy and back our farmers to produce food?

[Steve Reed]

The hon. Gentleman raises a number of important points. I will repeat my earlier comments about agricultural property relief: the last year for which we have data available shows that the vast majority of claimants will not pay anything. Unlike the previous Government, who thought that farmers were not in it for the money, we want them to succeed, so we are embarking on a farming road map and a new deal for farming that will consider supply chain fairness and stop farmers being undercut in trade deals such as the one the Conservatives agreed with Australia and New Zealand. Our intention is to make farming profitable for the future; the Conservatives’ record is the 12,000 farming businesses that went bust.

[Munira Wilson (Twickenham) (LD)]

4. Whether he has made an assessment of the potential merits of putting the Drinking Water Inspectorate’s guidance on per- and polyfluoroalkyl substances on a statutory footing.

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[Mr Connor Rand (Altrincham and Sale West) (Lab)]

7. What progress he has made on reducing pollution in waterways.

[The Secretary of State for Environment, Food and Rural Affairs (Steve Reed)]

The public are sick and tired of the scandal of sewage polluting our rivers, lakes and seas. That is why we are taking immediate action to place water companies under special measures through a new Bill that will give the regulator the power to ban the payment of undeserved bonuses for polluting water companies and bring criminal charges against persistent lawbreakers. We are also carrying out the biggest review of the water sector since privatisation to shape further legislation that will transform how our water system works and clean up our rivers, lakes and seas for good.

[Mr Rand]

Last year, there were 3,366 hours of sewage dumping into the rivers and streams of Altrincham and Sale West, leaving Sinderland brook, the Bollin and other waterways in a terrible condition. Will the Secretary of State outline further how the Government’s Water (Special Measures) Bill will ensure the end of sewage dumping into the rivers and streams of my constituency for good?

[Steve Reed]

I congratulate my hon. Friend on being such a champion for clean rivers in his constituency. As I said, the Bill will ban the payment of undeserved bonuses to water executives who are responsible for this kind of pollution, and will ensure instead that money is spent where it should always have been spent: on fixing the infrastructure, so that we can stop once and for all the kinds of sewage scandals that are creating the river pollution his constituents are so aghast to see on their doorstep.

[Ellie Chowns (North Herefordshire) (Green)]

Merry Christmas to you and your staff, Mr Speaker.

I declare an interest as co-chair of the all-party parliamentary group on water pollution. While I welcome the limited measures that the Government are taking to tackle pollution from the water industry, there is an elephant in the room, because agricultural pollution is just as important a source of pollution in our rivers, lakes and seas. What will the Secretary of State do to tackle the problem of agricultural pollution with the same degree of urgency and focus, and how will he support farmers—who themselves stand ready to take action to tackle this problem—by providing the funding, support and clear regulatory enforcement that is needed for a level playing field?

[Steve Reed]

I thank the hon. Lady for raising such an important issue, and I recognise that over 40% of pollution in our waterways comes from agricultural run-off. Sir Jon Cunliffe and the commission he is leading will look at all sources of pollution into our water. The budgets for more sustainable forms of agriculture that we have committed to will seek to reduce the use of fertiliser, so that there is less run-off into our water. The farming road map that we are working on with the farming community is also intended to reduce the amount of run-off from agriculture into our waterways, and we are looking at moving to a whole catchment-based model. We are looking at all sources of pollution into water so that we can clean up all of our rivers, lakes and seas, from whatever source the pollution comes.

[Mr Speaker]

I call the shadow Minister.

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

Thank you, Mr Speaker. I take this opportunity to wish you and all in the House a very merry Christmas.

Many customers are rightly concerned about Thames Water and the situation that company finds itself in. For the third time of asking the Secretary of State in this Chamber, will he confirm that he will not issue any regulatory easement to Thames Water in his discussions with that company, so that its environmental obligations and service commitments to its customers will not be reduced?

[Steve Reed]

The Government continue to monitor very closely what is happening in Thames Water, and indeed in all the other water companies. The only easement I have ever seen given to water companies over pollution was that of the previous Government, who turned a blind eye as sewage was flooding through our rivers, lakes and seas. This Government are putting the water companies under tough regulatory special measures—measures that the previous Government could have enacted, but failed to enact.

[James Asser (West Ham and Beckton) (Lab)]

8. What progress he has made on reducing electronic waste.

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[Danny Beales (Uxbridge and South Ruislip) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Environment, Food and Rural Affairs (Steve Reed)]

I share customers’ anger about the water bill rises announced by Ofwat this morning. Customers have been left to pay the price of Conservative failure after the previous Government let companies spend millions of pounds on bonuses and shareholder payouts instead of investing in our crumbling sewerage infrastructure—if you find cracks in your house and do nothing about it for over a decade, the problem gets worse and the cost of fixing it escalates, and that is exactly what has happened to our sewerage system. We have introduced the Water (Special Measures) Bill to curb unjustified bonuses. Money earmarked for investment will be ringfenced so that it can be spent only on infrastructure, rather than bonuses and shareholder payouts, as happened under the Conservatives. I have appointed Sir Jon Cunliffe to lead a commission into the regulation of the water industry so that the failures that led to today’s bill rises can never happen again. This Government will end the Tory sewage scandal once and for all.

[Danny Beales]

Recent investigations have shown that a lack of investment in drainage infrastructure has contributed to significant flooding in Uxbridge and South Ruislip. How will water companies including Thames Water be held to account where their lack of investment blights communities through repeated flooding?

[Steve Reed]

The Government of course recognise the importance of and need for a robust drainage system, but my hon. Friend will be aware that the previous Government failed to ensure adequate investment to maintain and upgrade it. Water companies have a duty to ensure that the area they serve is effectively drained. This includes drainage of surface water from the land around buildings as well as the provision of sewers.

[Victoria Atkins (Louth and Horncastle) (Con)]

I wish a merry Christmas to everyone in the House, and also to everyone in our farming, food, hospitality and water sectors. But not everyone will be able to celebrate Christmas. In recent weeks, a farmer took himself off to a remote part of his farm and killed himself. The message he left his family, who wish to remain anonymous, is that he did this because he feared becoming a financial burden to his family because of changes to inheritance tax. This is the human cost of the figures that the Secretary of State provides so casually. What does the Secretary of State say to that grieving family?

[Steve Reed]

I extend my heartfelt sympathies to that family, but I think it is irresponsible in the extreme to seek to weaponise a personal tragedy of that kind in this way. Where there is mental ill health, there needs to be support for that, and this Government are investing in it. The right hon. Lady knows from the last year for which data is available that the vast majority of claimants will pay absolutely nothing following the changes to agricultural property relief.

[Victoria Atkins]

How heartless and how extraordinary that the Secretary of State is more discomfited by being presented with the facts of the consequences of his policy than the reality of what this policy ensures. I was a Minister for seven and a half years, and I have never seen a policy have the consequences that this one has. [Interruption.] Members of the public will see Labour Members reacting in that way because I have dared to present them with the facts. We know that there is a tragically high suicide rate among the farming community. The National Farmers Union gave evidence about this, and the Secretary of State has been told repeatedly. Will he collect data on a monthly basis of suicides from farmers, farming families, landowners and family businesses, so that we, the House and the outside community can understand the human costs of this tax policy before it comes into force?

[Steve Reed]

Mental health services are the responsibility of the national health service, and the former Health Secretary, who broke the NHS, is in no position to lecture anybody about public services. She was no friend of the health service and mental health services, and she is no friend of farming. Some 12,000 farms went bust on the Conservatives’ watch. They failed to get £300 million out the door and into the pockets and bank accounts of farmers, and they signed a trade deal with Australia that undercut British farmers on environmental and welfare standards. I hear the posturing, but it is this Government who are standing up for farming.

[Patrick Hurley (Southport) (Lab)]

T3. I recently met farmers in the northern parishes of my constituency, and they told me about the urgent need for improved water management to protect farmland. They want to establish an internal drainage board for flood management, but they cannot take action to set it up until the necessary statutory instrument is in place. Given the importance of establishing an IDB in my area, will the Minister commit to working with me and stakeholders to reduce flood risks, and will she outline when the statutory instrument for an IDB in my area might be put before the House?

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[Ben Maguire (North Cornwall) (LD)]

T4. North Cornwall has world-class beaches and rivers, but Santa swims have been cancelled due to the constant dumping of raw sewage. Meanwhile, water companies receive millions from bill payers, but then the very next day, they give it away to their shareholders. Does the Secretary of State agree that the best gift he could give my constituents this Christmas would be a total ban on water bill rises until South West Water bosses finally end this scandal?

[Steve Reed]

The hon. Gentleman is right to point to the scandalous situation that the previous Government left our waterways in, with record levels of pollution and raw sewage filthying our rivers, lakes and seas. I have appointed Sir Jon Cunliffe to lead a commission to review governance and regulation so that we can stop it ever happening again.

[David Smith (North Northumberland) (Lab)]

I welcome the landmark £5 billion agriculture budget announced in the Budget, which is the biggest-ever budget for sustainable farming. My farmers in North Northumberland desperately need that money. In that context, what more can the Secretary of State do to push for his Department to get that money out the door in a way that the previous Government did not?

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[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

It would be helpful if the Secretary of State encouraged Sir Jon to engage with parliamentarians across the House. The necessary changes that he has outlined will take time, however. The truth of the matter is that if those who currently have responsibility were to change their culture and focus on outcomes for customers, rather than their own internal processes, we might see earlier improvements.

[Steve Reed]

There will be an opportunity for Members to engage with Sir Jon Cunliffe’s commission in January, and I am sure that the right hon. Member’s Committee will want to do precisely that. The Water (Special Measures) Bill, which is going through Parliament right now, is intended to make quick changes to the system. Sir Jon’s review will give us the chance to reform regulation and governance for the long term.

[Jenny Riddell-Carpenter (Suffolk Coastal) (Lab)]

I recently met the Alde and Ore Estuary Trust, which has long been campaigning and fundraising to refurbish and secure flood defences on the Alde and Ore estuary. Will the Minister meet me to discuss the trust’s projects and the barriers to progress?