Budget: Family Farms

3. What assessment he has made of the impact of the autumn Budget 2024 on family farms.

May I take this opportunity to wish a very merry Christmas to you, Mr Speaker, and to the hard-working House staff?

The Government have committed £5 billion to the agricultural budget over the next two years. That is the biggest budget for sustainable food production and nature recovery in our history. We are also investing £60 million into the farming recovery fund to support farmers affected by unprecedented extreme wet weather last winter. We understand concerns about changes to agricultural property relief, but the majority of those who inherit farmland after a death and claim relief will not be affected by the changes.

Has the right hon. Gentleman seen the latest research, which shows that 75% of commercial farms will exceed the £1 million threshold and therefore will become liable for inheritance tax? Just to give him one example, a family in West Hanningfield in my constituency who have farmed for five generations say that they face a potential inheritance tax bill of £1.5 million. They say that it will put an end to all that has gone before and end the aspirations of their family. I plead with the Government to look at this again.

Of course we hear the concerns, but I say to the right hon. Gentleman that in the last year for which we have actual claims data available, over 75% of claimants would not be affected. Of course, most farms, like every other business, can do succession planning in the usual way so they do not have to pay any more than they need to.

Merry Christmas, Mr Speaker. Our hard-working farmers across Calder Valley want to earn a living from farming, not use their land to avoid tax. After 14 years of neglect by the last Government, which undercut farmers in trade deals, the sector is, however, becoming increasingly unprofitable. I welcome the Labour Government’s new deal for farmers and the 25-year road map to making farming profitable again. Can the Secretary of State assure me that Calder Valley farmers will get their fair share in this new deal and in the new improved countryside stewardship higher-tier scheme next year?

My hon. Friend will be aware that the shadow Secretary of State, the right hon. Member for Louth and Horncastle (Victoria Atkins), and the former Prime Minister, the right hon. Member for Richmond and Northallerton (Rishi Sunak), keep telling farmers that they are not in it for the money. We know that they are. They are businesses that need to make a profit, and our new deal for farmers, which includes increasing supply chain fairness, is intended to make farms profitable and successful for the future in the way they were not under the previous Government.

I call the shadow Minister.

The autumn Budget put family farms in jeopardy. Those farms also need biosecurity to protect their futures. With avian influenza spreading, bluetongue still with us and African swine fever at our doorstep in Europe, biosecurity is national security. Central to that is the Animal and Plant Health Agency, whose headquarters in Weybridge needs a £2.8 billion redevelopment to protect farming and animal, plant and public health. The Conservative Government rightly started that work with £1.2 billion committed in 2020. I note that Labour has committed £200 million to support that transformation, but that will not touch the sides. Will the Secretary of State confirm that the Government will complete the project in full, as the Minister for Food Security and Rural Affairs called for in opposition, and commit the remaining £1.4 billion to protect our nation’s biosecurity and prevent an animal disease outbreak catastrophe?

I am grateful to the hon. Gentleman, who raises an important point. However, I find it a little ironic that Conservative Members are calling for this Government to commit to spending that their Government never committed to. The Weybridge biosecurity facility is so dilapidated that it faces obsolescence by the early 2030s—that is the legacy that the Conservatives left. The £208 million that we have committed will start the process of improving those facilities, and through the spending review phase coming forward, we will consider how we can commit further funding to ensure biosecurity for farmers, which the Conservatives absolutely failed to do.

I call the Liberal Democrat spokesperson.

Merry Christmas to you, Mr Speaker, and to all here and beyond.

Farmers in my communities and across the country are genuinely devastated by the Government’s family farm tax, which will affect many in my patch who are on less than the minimum wage, and by the 76% cut in the basic payment next year. Perhaps what dismays farmers across our country and in Westmorland even more is that the overall agricultural policy of this Government and their Conservative predecessors is to actively disincentivise farmers from producing food, despite the fact that this country produces only 55% of the food we need. That is a dereliction of duty by both main parties, and a threat to national security. What plans does the Secretary of State have to change his policy and back our farmers to produce food?

The hon. Gentleman raises a number of important points. I will repeat my earlier comments about agricultural property relief: the last year for which we have data available shows that the vast majority of claimants will not pay anything. Unlike the previous Government, who thought that farmers were not in it for the money, we want them to succeed, so we are embarking on a farming road map and a new deal for farming that will consider supply chain fairness and stop farmers being undercut in trade deals such as the one the Conservatives agreed with Australia and New Zealand. Our intention is to make farming profitable for the future; the Conservatives’ record is the 12,000 farming businesses that went bust.