Commons Sense

House of Commons · Ministers' Questions

Agricultural Property Relief and Business Property Relief: Impact on Farming

Tuesday 9 September 2025 · 4 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 4 Not answered 0

Key points

  • Ministerial questions focused on the impact of tax rises on family farms and their investment plans.
  • The government defended its tax policies, citing the need to support public services and economic stability.
  • Critics argued that the reforms would negatively affect farming communities and the next generation of farmers.

Topics (select to filter)

Questions & Answers

Q1 David Chadwick Lib Dem Brecon, Radnor and Cwm Tawe
Taxation Agriculture & Rural Affairs
Context

The question stems from concerns raised about the impact of recent tax reforms on family farms. At a local event, young farmers expressed distress over potential tax rises affecting them more than large banks.

Question

Why are the Government targeting family farms for tax rises rather than going after the big banks, which are closing branches right across my constituency? Why should young farmers have to pay for the mess left behind by the Conservatives?

Answer from James Murray

The hon. Gentleman talks about good causes. I assume he would agree that the NHS is a good cause, that public services are a good cause, and that a stable economy that encourages investment in our country is a good cause to pursue. As hon. Members have said many times already, the Opposition parties, including the hon. Gentleman’s, are very happy to reap the rewards of spending and investment, but are totally incapable of taking any of the difficult decisions to raise the revenue necessary to support them.

Partly answered

Not addressed: The answer does not address why family farms are being targeted for tax rises instead of large corporations. It shifts focus to broader policy questions without addressing the specific issue.

How: Shifts Focus

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Q2 Damian Hinds Con East Hampshire
Economy Agriculture & Rural Affairs
Context

Polling data indicates that four fifths of farmers have postponed or delayed investment since the Budget, raising concerns about economic impact.

Question

Given the Prime Minister’s clear commitment to growth that benefits every community in every corner of the UK, his Ministers will no doubt be disturbed at polling showing that four fifths of farmers have postponed or delayed investment since the Budget. Is it not time for a rethink of this policy—if not on grounds of fairness, then on grounds of investment, productivity and economic growth?

Answer from James Murray

I have been involved in many debates in this House that the right hon. Gentleman has been a part of as well, and we have set out how the decisions we have taken mean the system coming in from April next year will maintain generous tax reliefs within the agricultural property relief and business property relief system, while also raising revenue in a fair way to support the public finances. That money for the public finances, as I and my right hon. and hon. Friends have said many times today, is crucial to have economic stability and to get our public services back on their feet.

Partly answered

Not addressed: The answer does not directly address whether a rethinking of the policy is needed based on investment postponement; it instead restates government objectives without new evidence or action proposed.

How: Restates Position

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Q3 John Cooper Con Dumfries and Galloway
Taxation Agriculture & Rural Affairs
Context

Local farmers have expressed distress over potential tax changes, with a report suggesting that these changes are unfair and unbalanced.

Question

The Chancellor elicited much public sympathy with her recent tearful appearance on these Benches, but over the summer I have had Dumfries and Galloway farmers in tears at the loss of the next generation of farming. A new Centre for the Analysis of Taxation report says that HMRC’s own figures indicate that these changes to taxes are unfair and unbalanced. Will the Minister please think again?

Answer from James Murray

The hon. Gentleman is wrong. The CenTax report he refers to is independent analysis demonstrating that, in its opinion, the reforms improve on the current position and are expected largely to meet the Government’s objective. In fact, the report validates the Government’s position.

Partly answered

Not addressed: The answer does not address farmers' distress; it instead challenges the credibility of the report without addressing local concerns directly.

How: Challenges Credibility, Shifts Focus

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Q4 Daisy Cooper Lib Dem St Albans
Taxation Agriculture & Rural Affairs
Context

The Liberal Democrats have proposed a family farm test to address tax loopholes without penalizing family farms.

Question

We Liberal Democrats oppose the family farm tax, but in the spirit of constructive opposition, last November I recommended and requested that Ministers look at the idea of a family farm test, such as the ones used in France and Ireland. Such a test would ensure that they could close the loophole on big equity companies exploiting land, but it would not cover family farms in the process. Since I raised that suggestion last November, have Treasury Ministers asked officials to look at it?

Answer from James Murray

As is the normal process in developing any policy, we consider a range of options, but we have decided that this gets the balance right: raising revenue in a fair way while offering generous reliefs within the agricultural property relief and business property relief system. Let me just say that, when I heard the hon. Lady stand up and begin a sentence with, “We Liberal Democrats oppose”, I was hardly surprised.

Partly answered

Not addressed: The answer does not confirm whether a family farm test has been examined; it instead comments on political opposition without addressing specific policy development inquiries.

How: Comments On Political Stance, Shifts Focus

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