Family Farms Impact of Spring Statement 2025-04-30
2025-04-30
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
The MP is concerned about the impact of Labour's policies, particularly increases in national insurance contributions and changes to furnished holiday lets.
Not only is Labour’s family farm tax threatening the future of farming in Wales; it is also a direct attack on farmers right across the UK. In England, the sustainable farming incentive scheme was closed with no notice. Meanwhile, in Labour’s spring statement the Government brought forward: increases in national insurance, hitting all farmers once again; their tax on double cab pick-ups; plus changes to furnished holiday lets, penalising farmers who have actively diversified. Can the Minister explain to the Welsh agricultural sector why the Government are carrying out an all-out assault on its way of life?
Just picking up on the point about national insurance contributions, as the hon. Lady will know, many farmers employ one or two people, so they will come under the category of some of the smallest businesses. We have made sure that we protect them by doubling the employment allowance to £10,500, meaning that over half of small and microbusinesses will pay less or no national insurance contributions at all. Her Senedd colleagues voted against the budget for Welsh farmers in the Senedd only a few weeks ago.
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Assessment & feedback
The specific impacts on family farms from increased national insurance and changes to furnished holiday lets were not addressed.
Redirecting Blame Onto Other Political Parties
Response accuracy
Q2
Partial Answer
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Context
The MP is concerned about the lack of support for family farms due to Labour's policies.
The Minister seems to have no grasp whatsoever of the constant struggle facing our family farms in Wales and across the United Kingdom, because of the lack of support in both Labour’s spring statement and Labour’s family farm tax. Farming families are not multimillionaires—they are striving to make a profit, with many earning less than the minimum wage. Will the Minister finally accept that farms are crucial to the UK’s food security, and that the Government should support them and scrap the vindictive family farm tax?
We applaud the work that farmers do—they are vital to our food security. As the hon. Gentleman will know, there are many ways in which we have supported farmers, including the £337 million given to them in the Budget this year and passed on by Welsh Government Ministers to our farmers in Wales. He brings up inheritance tax. I remind him that we are maintaining significant levels of relief from inheritance tax beyond what is available to others and compared to the position before 1992. Where inheritance tax is due, those liable for a charge can pay any liability on relevant assets over 10 annual instalments, interest free.
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Assessment & feedback
The specific impacts of the family farm tax were not directly addressed and no commitment was given to scrap it.
Redirecting Blame Onto Inheritance Tax Rules
Response accuracy