Agricultural Property Relief

Steve Witherden Excerpts

Tuesday 28th January 2025 Westminster Hall

[Steve Witherden (Montgomeryshire and Glyndŵr) (Lab)]

It is a pleasure to serve under your chairship, Mr Stringer. I congratulate the hon. Member for Caerfyrddin (Ann Davies) on securing this important debate about a topic of major concern for many of my constituents.

Farming is at the heart of Wales’s social fabric, playing a vital role in our economy, food security and stewardship of the beautiful Welsh countryside. On Saturday, I met representatives of the FUW in Llansilin and NFU Cymru at a farm in Llanerfyl to discuss the ongoing challenges that farmers face. Farming is currently the least profitable sector of our economy, and changes to APR are having a significant impact on family-run farms.

A lifelong farmer in my constituency raised her children on her 220-acre farm. Although considered small, the farm is valued at more than £1 million. Her 48-year-old son, who has farmed alongside her since the age of 18, had hoped to take over the farm. His young daughters now share his passion. Sadly, they now face the prospect of losing the farm they have worked so hard for.

Let me be clear. I support progressive taxation to ensure that the wealthiest pay their fair share towards the upkeep of our society. In the 21st century, we see individual plutocrats and super-wealthy multinationals buying agricultural land to avoid paying inheritance tax, with no intention of using it for farming. That reduces our farmed land—something we can ill afford, given our fast-growing population in an unstable world.

The proposed changes to APR for farmers come on the back of this and more, and feel like the straw that broke the camel’s back, or as we would say in Wales: “Yr hoelen olaf yn yr arch.—[Translation: The final nail in the coffin.]”—if the hon. Member for Caerfyrddin can forgive my north-east Wales accent. The changes risk having a deeply detrimental effect on working family farms. What is at stake here? Food security. I have repeatedly spoken in the Chamber about my heartbreaking experiences with hungry children and food banks. In recent years, we have seen something that many never thought they would witness: food scarcity, empty shelves in the supermarkets and astronomical food price inflation. It cannot be overstated how that period of food inflation has affected the poorest in our country.

I will not say more about the proposed APR policy as a whole. Prior to my election in July, I attended 10 hustings —we do like our hustings in mid-Wales; my thoughts on this topic are well-known and on the record. However, I will speak about mitigations. First, I respectfully request that the Minister considers raising the threshold. If this policy is to target those who buy farmland solely to dodge inheritance tax, then let us make it so: raise the threshold and actually increase the rate for people like that, so that no family farm is affected.

Secondly, I implore the Minister to look at an exemption for farmers who—I risk sounding macabre, but I want to make myself clear—are too late in life to plan for this proposed change. I hope the Minister and you, Mr Stringer, can forgive my emotion. When you sit with an elderly farmer and his wife, both fighting back the tears, and they say, “If only I could die now, if only there was some kind of pill I could take now, so that my children don’t have to worry about this,” that has a profound effect. Diolch.

Food Banks

Steve Witherden Excerpts

Tuesday 19th November 2024 Westminster Hall

[Danny Kruger]

I am grateful for the intervention. I recognise those points and pay tribute to the hon. Member’s food banks too.

Hon. Members have cited some of the facts. It is a fact that the number of parcels handed out by the Trussell Trust doubled in the last Parliament in the light of the covid crisis and the cost of living crisis, but I emphasise that we should not take food bank use as a perfect proxy for poverty, because that data is patchy and affected by the supply of food banks. There is also an important displacement effect. It is not necessarily the case that all the need identified by food banks is new need; that need might formerly have been met by other sources, such as family and friends or other community organisations.

Nevertheless, the profile of food bank use tracks the state of the economy and the level of poverty in our country. We saw it spike during lockdowns, then decline and then spike again with the cost of living crisis. I am afraid that it has not really declined since: 1.4% of households have used a food bank in the last month and 3% in the last year, which are significant numbers.

So what is going on? I echo the point of my right hon. Friend the Member for Salisbury (John Glen) about the complexity of the causes of food bank use, but we recognise the obvious point that it is ultimately down to household income. The “Hunger in the UK” report points out that the main reasons for people having problems with their household income are difficulties with benefits, as many hon. Members have mentioned; the existence of in-work poverty; and the difficulty of gaining well-paid work, particularly for disabled people and carers.

[Steve Witherden (Montgomeryshire and Glyndŵr) (Lab)]

A number of constituents have written to me expressing their struggle to afford food, despite being in work, and that is not an isolated issue. In mid-2022, almost 90% of those referred to food banks in Wales were in work and had such low incomes that they were living in destitution. Does the hon. Member agree that the working poor, created by the last Government, are disgracefully reminiscent of Victorian times?

[Danny Kruger]

I do recognise the extent of the problem of in-work poverty and of people reliant on benefits to sustain their incomes and on additional support from the outside. I do not accept that that was a new phenomenon; in fact, I will come to the last Government’s record in a moment.