Family Farms: Impact of Spring Statement

3. What assessment she has made of the potential impact of the spring statement 2025 on family farms in Wales.

6. What assessment she has made of the potential impact of the spring statement 2025 on family farms in Wales.

Just this morning I had the pleasure of visiting the Carmarthenshire Day exhibition in the Jubilee Room, which I strongly recommend as a real display of Welsh farming and food produce. The Government are steadfastly committed to the farming sector. We protected the farm budget at its current level and allocated £337 million to the Welsh Government at the autumn Budget. The Welsh Government, in their budget, have used that to maintain the basic payment scheme, providing much-needed support for farmers across Wales—a budget that, as the hon. Lady knows, Tory and Plaid Cymru Senedd Members tried to block.

I draw the attention of the House to my entry in the Register of Members’ Financial Interests.

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.

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.

The Welsh Government’s budget contained over £300 million to support Welsh farmers. Is it not the case that Plaid Cymru and the Tories put Welsh farmers’ livelihoods at risk by voting against the Welsh Government’s recent budget?

My hon. Friend is absolutely right.