Farmers: Inheritance Tax
1/51. What discussions she has had with farmers in Wales on the potential impact of planned changes to inheritance tax relief on the agricultural sector.
10. What discussions she has had with farmers in Wales on the potential impact of planned changes to inheritance tax relief on the agricultural sector.
Minister, welcome.
Thank you, Mr Speaker. As a proud Welsh MP I am honoured to be here for my first Welsh questions. We fully recognise the role of farmers and the agricultural community in Wales. That is why one of the first things that I did as Minister was meet members of the Farmers’ Union of Wales at the farm of one of its members just two weeks ago. I will be meeting with the National Farmers’ Union later today to discuss important matters for its members, including inheritance tax. This Government have also made sure to protect the farm budget for Wales, ensuring that the full £337 million has been allocated to the Welsh Government.
I welcome the Minister to her place. The impact of the changes to IHT goes far beyond just farmers. Last month, a Pembrokeshire farm gathered 57 businesses from vets, machinery dealerships, and milk processors, to electricians and fencing companies, employing almost 11,000 people. Almost half of those were totally reliant on incomes from local farms. Have the Government fully considered the ripple effect of that policy on farms in Wales and across the UK, including in my constituency?
This Government want to strike a fair balance between supporting farmers and fixing our public finances on which our communities, including those important agricultural communities, rely so heavily. The vast majority of farmers will not be affected by this change, and they will be able to pass the family farm down to their children. Welsh Conservatives voted to block the support reaching Welsh farms in March, which shows that the Conservative party just does not care for farmers and the agricultural community.
I welcome the Minister to her position at the Dispatch Box. I know she will be excellent at the job. I also refer to my entry in the Register of Members’ Financial Interests. Welsh farming is central to the Welsh economy—we can all agree on that—but it is now facing a double whammy from the mad sustainable farming scheme from Labour in Cardiff, and the frankly bad family farm tax that has been dreamt up by Labour in London. The Farmers’ Union of Wales tells us that more than 85% of active farms in Wales will have IHT bills that exceed their incomes. That spells economic disaster. Why is Labour so deaf to the voice of farmers in Wales?
As I said, the Government want to strike that fair balance, and that is what they are doing. Our reforms mean that the majority of those claiming agricultural property relief will not be affected. That is a fair approach that balances fixing our public finances after the chaos of the Conservative party, and maintaining much needed support for families, farms and the wider rural agricultural community.
I welcome my hon. Friend to her place. Was she as shocked as I was last year that Plaid Cymru and Conservative Senedd Members voted against the £300 million funding for Welsh farmers? Will she join me in urging them to stop playing political games, put the people of Wales first, and work with the Welsh Government constructively to ensure that we do not have uncertainty for our farmers and our public sector, which we all depend on in Wales?
I thank my hon. Friend and pay tribute to her work in this role prior to my appointment. I completely agree: the Welsh Government published their outline draft budget earlier this month, and are working with Opposition parties to ensure that it has broad support. The question everyone in Wales wants the answer to is whether the Opposition parties will vote against billions of pounds for public services, including vital support for Welsh farmers, just like they did last year.
I call the shadow Secretary of State.
I note that it takes three women to take me on now, but I very much welcome the Ministers to their places. Charles Rees, a fifth-generation Pembrokeshire farmer, has bravely and moving shared his battle with cancer on the BBC’s “Countryfile”, and I know this House will send him and his family our best wishes. His illness is not his only worry; he is also seriously concerned that his son, who is running his farm, could now be facing an unaffordable inheritance tax bill of £1 million, solely due to this Government’s catastrophic family farm tax. Despite Ministers saying differently, Charles and many other farmers across the country are fearing for their livelihoods, their way of life, their futures, and for food security. Will the Government scrap the family farm tax?
I reiterate that our reforms mean that the majority of those claiming the relief will not be affected. As confirmed by the Minister for Food Security and Rural Affairs, my hon. Friend the Member for Wallasey (Dame Angela Eagle), there will be no change and no U-turn on inheritance tax. This policy strikes a fair balance and is fixing our public finances, after the chaos that the Tories left, while protecting our rural communities.