John Whittingdale Conservative, Maldon
What assessment he has made of the impact of the autumn Budget 2024 on family farms.
Steve Reed The Secretary of State for Environment, Food and Rural Affairs
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.
John Whittingdale Conservative, Maldon
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.
Steve Reed The Secretary of State for Environment, Food and Rural Affairs
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.
