Budget: Implications for Farming Communities

Viscount Hailsham Excerpts

Tuesday 5th November 2024 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

The noble Earl makes an incredibly important point. We are aware that this is an issue. I stress that farmers will be able to access 100% relief for the first £1 million and 50% relief thereafter. That means an effective 20% tax relief rate and that an individual can pass up to £2 million, and a couple up to £3 million between them, to a direct descendant inheritance tax free. It is important that we make that clear. However, I stress again that there is financial advice out there. Many businesses and individuals take tax advice. I encourage all businesses, including farms, to do so.

[Viscount Hailsham (Con)]

My Lords, I declare an interest; while I no longer have agricultural land, members of my family do. Last year, on 20 December, the NFU issued a press statement which stated that Steve Reed, then shadow Defra Secretary, had assured the NFU that Labour had no plans to change agricultural property relief. The then NFU president said that

“it’s good to see Labour has listened to our concerns and recognised the importance of keeping this policy”.

Did the NFU misunderstand what Mr Reed said? Was Mr Reed unaware of the Chancellor’s plans? Had those plans been concealed from Mr Reed—or was the NFU being misled?

[Baroness Hayman of Ullock (Lab)]

Clearly, I cannot comment on the detail of a meeting that I did not attend. However, the Government’s commitment to supporting farmers and rural communities is unwavering and we have demonstrated this by committing £5 billion in the agricultural budget over the next two years. That is the biggest ever budget for sustainable food production and nature’s recovery.