Agricultural and Business Property Relief Food Prices 2025-12-18

2025-12-18

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Response quality

Questions & Answers

Q1 Partial Answer
Nick Timothy Con
West Suffolk
Context
The National Farmers Union reports that three-quarters of commercial family farms will be affected by the family farm tax. The Prime Minister previously acknowledged that some farmers may take their own lives due to this tax.
Happy Christmas to you, Mr Speaker, and to all Members and staff of the House. At the Liaison Committee this week, the Prime Minister admitted that some farmers will take their own lives because of the family farms tax, but he repeated the claim that three quarters of farms will not be affected. According to the National Farmers Union, the opposite is true: three quarters of commercial family farms will have to pay it. The big idea now is to drive up profitability, but as my right hon Friend the Member for New Forest West (Sir Desmond Swayne) said, the family farms tax is killing investment. Does the Minister think that Baroness Batters was wrong when she said in her report, on page 4, that the closure of the sustainable farming initiative and the family farms tax have left farmers particularly in the arable sector questioning viability, let alone profitability?
I do not think that the hon Member’s characterisation of the Prime Minister’s remarks to the Liaison Committee is entirely accurate, but I am working on introducing and making available in the first half of next year a sustainable farming incentive scheme that will hopefully be more available to smaller farmers, easier to engage with, and much simpler than the mess delivered by the Government of which he was a part. Let us face it: 25% of the money in the SFI scheme goes to the top 4% of farmers. I want to see a different distribution.
Assessment & feedback
The Minister did not directly address Baroness Batters' assessment and focused on a new initiative instead.
Changing Subject Introducing Alternative Policy
Response accuracy
Q2 Partial Answer
Katie Lam Con
Weald of Kent
Context
Food prices increased by 4.2% year-on-year last month, while farming profitability has been affected by national insurance contributions increases, family farm tax, and energy taxes.
Merry Christmas, Mr Speaker. The cost of food in this country increased by 4.2% year on year last month, yet farming profitability is on the floor and has been hit repeatedly by this Government, whether that is in national insurance contribution increases, the family farm tax or energy taxes. Will the Government consider easing their terrible tax burden on farmers to solve both the cost of living crisis for food and the farming profitability crisis at the same time?
I am puzzled by the hon Lady’s view that the issues she talks about are somehow having a bad effect on food prices, since yesterday’s figures demonstrate that there has been a 0.7% decline in food price inflation, and estimates assume that inflation will gradually come down over the next two years.
Assessment & feedback
The Minister did not address the request to ease taxes on farmers.
Disputing Premise Changing Subject
Response accuracy