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Farming and Inheritance Tax
04 December 2024
Lead MP
Victoria Atkins
Debate Type
General Debate
Tags
Taxation
Other Contributors: 87
At a Glance
Victoria Atkins raised concerns about farming and inheritance tax in the House of Commons. Other MPs contributed to the debate.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
The Government have driven farmers to despair with increased inheritance taxes that will affect up to 75,000 farming businesses over a generation. The Chancellor's figures contradict those from the National Farmers’ Union which suggest three quarters of farms will be affected and the Country Land and Business Association’s analysis indicates an average arable farm will need to sell 20% of its land to cover the inheritance tax bill.
Jim Shannon
DUP
Strangford
The collective decision to have this debate in the House is supported by farmers and constituents. Professional legal advice indicates that approximately 65% of small farms in Northern Ireland will be affected.
Alison Hume
Lab
Scarborough and Whitby
The right hon. Member left a trail of destruction across the Government, serving as Health Secretary who broke the NHS, Prisons Minister who ran out of prison places, and Treasury Minister who crashed the economy.
Helena Dollimore
Lab Co-op
Hastings and Rye
The right hon. Lady talks about figures but her Government's record was leaving £300 million unspent in the farming budget, not helping farmers.
Alec Shelbrooke
Con
Wetherby and Easingwold
This policy is frightening as it may reflect a collectivisation sentiment akin to 'Animal Farm', suggesting everything should be taken over by the state.
John Hayes
Con
South Holland and The Deepings
The word ‘betrayal’ fits because long before the election, pledges were given that these changes would not be made.
Caroline Johnson
Con
Sleaford and North Hykeham
This is a tax on tragedy affecting farmers who know they might be affected; an emotional impact from a farmer’s wife's perspective.
Baggy Shanker
Lab Co-op
Derby South
The health and wellbeing of our farmers are at stake. The right hon. Lady’s tenure as Health Secretary saw operation waiting times almost triple compared to 2010, does she welcome the current investment in the NHS?
Roger Gale
Con
Herne Bay and Sandwich
No farmer feels this policy is good; do any Labour MPs representing rural communities genuinely believe they are voting in their constituents' interests tonight?
Shaun Davies
Lab
Telford
The right hon. Lady talks about backing farmers but did a trade deal with Australia and New Zealand that harmed British farmers.
Joe Morris
Lab
Hexham
Asked if Labour Members received advance sight of the Opposition day motion, then inquired about the cost of Brexit to farmers and the rural community.
Pete Wishart
SNP
Perth and Kinross-shire
Inquired how much the Government estimates that Brexit has cost farmers and the rural community.
John Hayes
Con
South Holland and The Deepings
Asked the Minister to clarify why only 27% of farms will be affected by the measure, while the National Farmers Union says it is 75%, and requested a detailed explanation from the Dispatch Box.
Greg Smith
Con
Mid Buckinghamshire
Asked what the Minister has to say about the Seed family in Long Crendon facing a significant tax bill that will take them 40 years to repay.
Roger Gale
Con
Herne Bay and Sandwich
Questioned whether the Government's position contradicts advice from qualified tax advisers and land valuers.
Alistair Carmichael
Lib Dem
Orkney and Shetland
Suggested reconsidering changes to agricultural property relief due to historical issues with passing down family farms, citing the introduction of 100% relief.
John Glen
Con
Salisbury
Expressed concern over a lack of impact assessment and questioned why other more effective mechanisms were not used instead.
Simon Hoare
Con
North Dorset
Asked the Minister to explain the disparity between current Treasury figures and previous statements made by government ministers regarding these policies.
Louise Jones
Lab
North East Derbyshire
Inquired about measures being taken to improve profitability in British farming, citing over 12,000 farmers and agribusinesses that have gone out of business since 2010.
North Cotswolds
Suggested that the disparity between Treasury figures and those from agricultural interest bodies may be due to land values, and requested an up-to-date impact assessment on how many farms this tax will affect.
Shaun Davies
Lab
Telford
Asked whether measures could inflate land value and inquired about changes to help farmers across the country.
Andrew Murrison
Con
South West Wiltshire
Asserted that the Government's estimate of farms affected by the tax is down by a factor of five, according to the CAAV's impartial independent review.
Luke Murphy
Lab
Basingstoke
Responded to criticism from the shadow Secretary of State and questioned whether Labour was responsible for ending the decline in the countryside during their tenure in government over 14 years.
Harriet Cross
Con
Gordon and Buchan
Asked the Minister if he agrees that the CAAV calls the £3 million figure ‘unrealistic’ and ‘unreasonable’.
Alicia Kearns
Con
Rutland and Stamford
Questioned how many farmers the Minister has personally met over the last three months to discuss the impact of inheritance tax changes.
Louise Jones
Lab
North East Derbyshire
Asked whether mortgageable value is excluded in cases of farms worth several million pounds for the purpose of inheritance tax and if this could explain discrepancies in figures discussed.
Stuart Anderson
Con
South Shropshire
Requested to ask a question but details not provided.
Gavin Williamson
Con
Stone, Great Wyrley and Penkridge
Highlighted that over a 10-year period, 99% of the profit from an average arable farm will go towards paying inheritance tax, leaving little for investment or living expenses.
John Glen
Con
Salisbury
Suggested considering mitigations for farmers above a certain age due to the lack of time they have to plan for this intervention and the potential inability to pass farms on to the next generation.
Julian Lewis
Con
New Forest East
Cited previous remarks from another Minister acknowledging that there are trade-offs involved, which might suggest the Government accept losing farming land for development.
Richard Tice
Reform
Boston and Skegness
Asked if the policy would be revisited in 12 or 24 months based on data showing its negative impact, suggesting a potential U-turn.
Solihull West and Shirley
Requested to ask a question but details not provided.
Becky Gittins
Lab
Clwyd East
Defended the Government's approach, noting that two thirds of land bought in England in 2023 was purchased by non-farmers and argued closing a tax loophole is justified.
Alistair Carmichael
Lib Dem
Orkney and Shetland
Requested to ask a question but details not provided.
Seamus Logan
SNP
Aberdeenshire North and Moray East
Suggested that the policy inadvertently targets small and medium-sized farmers, labelling it irresponsible.
Alison Bennett
Lib Dem
Mid Sussex
Questioned whether changes to Agricultural Property Relief will undermine sustainable land management initiatives.
Anna Dixon
Lab
Shipley
Supported the Labour Government's investment in farming and criticised delays under previous Conservative administration.
John Slinger
Lab
Rugby
Argued that the wealthiest 7% of claimants account for 40% of the overall APR budget, suggesting a need for fairness from the Conservatives.
Aylesbury
Discussed rural infrastructure issues and criticised Conservative Governments for damaging rural services over the past years.
Dave Doogan
SNP
Angus and Perthshire Glens
Requested to ask a question but details not provided.
Andrew Pakes
Lab Co-op
Peterborough
Highlighted the role of farm workers in agriculture, questioning Opposition parties on their support for the Agricultural Wages Board and its abolition under previous Governments.
Tim Farron
Lib Dem
Westmorland and Lonsdale
Stressed that family farms are under threat, blaming the transition from old farm payments to ELMS which resulted in a £350 million underspend by the previous government. He detailed how small farmers suffer financially while large landowners benefit due to access to schemes and agents.
Greg Smith
Con
Mid Buckinghamshire
Asked about the credibility of Liberal Democrats regarding farming policies, citing their actions in Oxfordshire as an example of rhetoric not matching reality.
Pete Wishart
SNP
Perth and Kinross-shire
Suggested that Labour does not understand farmers because they do not fit the party’s definition of a working person, highlighting their 12-hour workdays in harsh conditions.
John Hayes
Con
South Holland and The Deepings
Emphasised the importance of family farms as investments for future generations, criticising current policies that threaten this continuity.
Jamie Stone
Lib Dem
Caithness, Sutherland and Easter Ross
Explored potential risks to farmers if land prices drop due to inheritance tax changes, highlighting the possibility of banks calling in loans which could put farmers out of business.
Anna Dixon
Lab
Shipley
Acknowledged challenges faced by tenant farmers and welcomed the appointment of a new commissioner for the tenant farming sector, criticising previous government policies that favoured large landowners.
Maya Ellis
Lab
Ribble Valley
Ellis argues against the Conservative motion, stating it lacks clarity on rural policy and proposes to use government procurement to support British produce, protect farmers from low welfare standards in trade deals, and seek veterinary agreements with the EU. She advocates for devolution to empower local understanding and knowledge of rural areas, supporting generational farming communities. Ellis also mentions the importance of reducing energy prices and increasing public sector food procurement from local farms to boost farmer profits.
North Cotswolds
The changes will affect two-thirds of farms according to DEFRA forecasts and up to 75% according to the NFU. Farmers like David, who earn around £40,000 a year, cannot afford inheritance tax of £800,000 after relief, leading them to sell their land or stop farming. The Government should consider raising the threshold for APR and BPR and provide a longer transitioning period.
Andy MacNae
Lab
Rossendale and Darwen
The NFU has used language that takes no account of estate planning mitigations, overstating the impact of inheritance tax changes on farms. The NFU's statistics are misleading as they do not consider alternative actions farmers can take.
Jonathan Pearce
Lab
High Peak
Under previous Conservative government policies between 2019 and 2024, there was an 8% reduction in agricultural businesses in the North Cotswolds. The current concerns over inheritance tax changes may be overstated given this historical context.
Pete Wishart
SNP
Perth and Kinross-shire
The credibility of the Conservative party's critique on farming issues is undermined by Brexit, which has led to cheaper imports, increased costs for farmers, and barriers to trading. The Conservatives should acknowledge the negative impact of their previous policies.
Andrew Pakes
Lab Co-op
Peterborough
Praises the essential role of farmers and farming workforce in Britain's economy. Criticises Conservative government for running down DEFRA budget, cutting flood funding, selling out British farmers through trade deals, and abolishing the Agricultural Wages Board. Highlights issues such as food poverty, rural wages stagnation, and rising land prices. Calls on the Government to take responsibility and focus on fixing public services in rural communities.
John Hayes
Con
South Holland and The Deepings
Intervenes to endorse Andrew Pakes' recognition of farmers but questions his understanding of the difference between assets and income, highlighting that farmers’ wealth is essential for feeding the nation.
Ben Obese-Jecty
Con
Huntingdon
Intervenes to ask Andrew Pakes for examples of farms in his constituency supporting a particular measure, though the specific measure isn't detailed.
Alistair Carmichael
Lib Dem
Orkney and Shetland
Criticises the current inheritance tax reform as a missed opportunity to build consensus on land values, highlights unintended consequences like super-rich buying up agricultural land for tax avoidance. Emphasises farmers' low returns on capital despite Government intervention through subsidies, mentions 0.5% return rate on capital in DEFRA figures and £25,000 income from £3 million farm. Advocates a wider debate about farming finances and proposes rewarding long-term lease agreements with inheritance tax exemptions for tenant farmers.
Matt Bishop
Lab
Forest of Dean
Supports the Government's initiative to introduce inheritance tax, arguing it is necessary given economic realities. Acknowledges challenges faced by rural communities and farmers due to Brexit but defends the current Government’s actions as crucial for long-term growth and sustainability. Highlights measures like ensuring 50% of food consumed in hospitals, army bases, and prisons comes from British farms, grid reform for renewable energy integration, and a new veterinary agreement with the EU. Acknowledges some farmer discontent but argues that overall the policy is necessary and beneficial.
Katie Lam
Con
Weald of Kent
The Government have made many claims about this policy that are not credible. Firstly, the Secretary of State denied any intention to change APR last year but now seeks to do so. Secondly, the need for £500 million is questioned given other Government spending. Thirdly, farmers are incorrectly labelled as rich despite their high land values and low profitability. Finally, the policy's suggestion that farms can be transferred at will is impractical due to health uncertainties and capital gains tax implications. The policy pressures farmers who already face mental health issues and low profits.
Dave Doogan
SNP
Angus and Perthshire Glens
Intervenes to question the Government's claim that the terms of proposed agricultural property relief are more favourable, stating inheriting a family farm is different from inheriting an asset for personal use.
Louise Jones
Lab
North East Derbyshire
Inquires about the capital gains tax starting upon death rather than the time of land purchase.
Andrew Pakes
Lab Co-op
Peterborough
Requests to give way for further discussion or clarification, but no position is detailed in the provided text.
Jonathan Pearce
Lab
High Peak
Supports the changes to agricultural property relief, arguing that farmers need profitable and sustainable farming. He criticises previous governments for their poor treatment of farmers and notes that his constituents voted for him due to disappointment with past policies.
David Chadwick
Lib Dem
Brecon, Radnor and Cwm Tawe
Expresses concern about the impact on young farmers who are encouraged into agriculture by community programmes like the senior young farmers club.
Gavin Williamson
Con
Stone, Great Wyrley and Penkridge
Challenges Jonathan Pearce's support for Government policies affecting farms in his constituency.
Penrith and Solway
Markus Campbell-Savours questioned the parliamentary procedure of debating inheritance tax changes when they are not part of an upcoming vote. He stated that, if it were a real vote, he would vote against the Government's plans due to his promises to farmers in his constituency and his dissatisfaction with past failures by the Conservative government.
Nusrat Ghani
Con
Sussex Weald
Nusrat Ghani responded to Markus Campbell-Savours, citing Erskine May's guidance on 'former rules' regarding anticipation and argued that there is no restriction against debating the issue. She stated it is important for Members to hold the Government accountable.
Esther McVey
Con
Tatton
McVey emphasises the negative consequences of the Labour Government's farm tax policy on farmers' livelihoods and food security. She cites examples from her constituency where farmers face significant inheritance tax burdens, threatening their ability to pass land to future generations or invest in modern agricultural technology.
Callum Anderson
Lab
Buckingham and Bletchley
Anderson defends the Labour Government's approach, highlighting past Conservative failures such as underutilized agricultural budgets and poor trade deals that undermined British farmers. He emphasises the government's commitment to investing £5 billion in sustainable food production over two years and defends the inheritance tax policy as balanced and fair.
George Freeman
Con
Mid Norfolk
The speaker emphasises that agriculture is critical for food security and climate goals. He argues the policy undermines family farms, increases tax burdens on farmers, and could lead to land sell-offs to big developers.
Joe Morris
Lab
Hexham
Morris defends his party's approach, arguing it is serious about countryside renewal and criticises the Conservative Party for failing to understand rural communities. He highlights the need for stable public services and affordable housing in rural areas.
Pete Wishart
SNP
Perth and Kinross-shire
Critiques Labour's urban-centric view towards farming, highlighting that farmers do not fit into the Labour clique despite their hard work and dedication. Emphasises the government’s lack of understanding of rural communities and farm continuity. Proposes a different approach in Scotland with consistent farm payments and food production at its heart.
David Smith
Lab
North Northumberland
Welcomes the opportunity to speak on farming, stressing the importance of farming for local communities in North Northumberland. Criticises previous governments for battering the farming sector over 14 years and highlights that creating a reputation as a 'poor payer' takes years, not months. Raises issues such as the post-2020 squeeze on food supply chains, energy security failures, and supermarket negotiations affecting farmers. Urges the government to ensure reliable pricing and supply arrangements between retailers and farmers.
Rachel Gilmour
Lib Dem
Tiverton and Minehead
As a former director of the NFU and current representative of a constituency with over 1,000 farms affected by the measures proposed, Rachel Gilmour criticises the assumptions behind the tax changes. She points out that ownership is not equally split between spouses in Exmoor farming families, average family farms are valued at more than £3 million, and many do not qualify for the residential nil rate band due to their value exceeding £2.65 million.
Louise Jones
Lab
North East Derbyshire
Jones criticises the Conservative approach of placing tax burdens on those with disabilities and young people, rather than targeting the wealthy. She points out that retaining the status quo would see 7% of claimants receiving 40% of relief, amounting to £219 million for just 117 estates. Jones highlights Labour's focus on rural health facilities, farmer support, and a new commissioner for tenant farmers.
Andrew Murrison
Con
South West Wiltshire
Murrison supports the land-based and agrifood sector in his constituency, highlighting that many farmers are at risk due to tighter margins caused by the proposed changes. He criticises the government's estimate of affected farms as being either incompetent or misleading, citing an independent source estimating five times more impacted farms than the official figure.
Jo White
Lab
Bassetlaw
Farmers in Bassetlaw face multiple issues including the impacts of climate change, increased costs, labour shortages, and rural crime. I have worked closely with farmers to address these challenges through initiatives like joining NFU schemes and supporting sustainable food production as outlined in the recent £5 billion Budget commitment.
David Mundell
Con
Dumfriesshire, Clydesdale and Tweeddale
The proposed inheritance tax measures will devastate farms and farming communities. In my constituency, good agricultural land is being acquired by private equity firms for tree planting that is environmentally unfriendly and financially attractive but provides no employment. Viable agricultural land should not be used for solar farms; there are other suitable options available.
Andy MacNae
Lab
Rossendale and Darwen
Emphasised the importance of farmers to the economy, criticised Conservative policies for decimating the farming industry, urged calm in debates, highlighted various tax exemptions available for family farms, suggested measures such as estate planning and professional advice to mitigate inheritance tax liability.
Gavin Williamson
Con
Stone, Great Wyrley and Penkridge
Expressed concerns about the impact of inheritance tax changes on farmers in his constituency, criticised Treasury's policy for putting farmers' livelihoods at risk, urged Ministers to consider wider impacts on agriculture and countryside, suggested visiting agricultural shows to understand farmer sentiments.
John Slinger
Lab
Rugby
The Conservative Government trashed our economy with high mortgage rates, interest rates, prices, and taxes on working people. They cut public services like rural policing and road maintenance, and their trade deals hurt farmers by prioritising cheaper imports over domestic producers. The current budget invests £5 billion in farming over two years for sustainable food production and disaster relief.
John Glen
Con
Salisbury
Farmers were gravely disappointed by the Budget measure, which was expected not to be on the table. The policy removing APR and BPR is a product of technical desktop economists without considering its impact on the rural economy and farming. This could decimate family farms unless there are significant increases in thresholds or age limits.
Sam Rushworth
Lab
Bishop Auckland
Farmers struggle with physical strain and financial anxiety, requiring secure livelihoods for food security. The motion for today’s debate seems calibrated to make opposition likely rather than presenting a constructive policy. Some farmers in his constituency sympathise with the Government's aims but are concerned about tax incentives to invest in agricultural land.
Lewis Cocking
Con
Broxbourne
Broxbourne is seeing an increase in agricultural land due to boundary changes. The proposed tax will affect thousands of constituents through the supply chain and food prices. Labour MPs claim that farmers are against this policy but also suggest they might vote with the Government, which contradicts their earlier stance. Visiting a farmer, I was told that the policy would destroy his family farm. He confirmed that even if represented by a Labour MP, his view would remain the same. Farmers across Hertfordshire and beyond protested against the Government's policy.
Robbie Moore
Con
Keighley and Ilkley
Describes the daily struggles of farming families in the UK. Many farmers earn less than minimum wage, making profits difficult to achieve. The Labour government's farm tax is threatening to destroy family farms after generations of hard work. Despite Labour's pre-election promises, they are now introducing changes to inheritance tax that farmers were not prepared for. MPs like Jon Pearce and others have failed to provide support or mention farmers who back the policy. The NFU, CLA, TFA, and CAAV criticise the Government's data on this issue. Public support for the policy has been lost, leaving Labour as its only defenders. Questions the unity of the government given Treasury's late notification to DEFRA about the policy.
Daniel Zeichner
Lab
Cambridge
Closing the debate on reforms to agricultural property relief, Daniel Zeichner emphasised that these reforms were necessary due to a £22 billion fiscal deficit inherited from the Conservatives. He acknowledged contributions from Labour MPs such as Maya Ellis and Andrew Pakes, highlighting issues like workforce concerns and rural crime.
John Hayes
Con
South Holland and The Deepings
No position provided in the given text.
Steve Barclay
Con
North East Cambridgeshire
No position provided in the given text.
Judith Cummins
Lab
Bradford South
Ordering the House to listen to the Minister, Judith Cummins expressed that constituents and farmers across the country would certainly want to hear from him.
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