During the course of the general election, the now Prime Minister spoke repeatedly about being on the side of working people.
During the course of the general election, the now Prime Minister spoke repeatedly about building a new relationship with the countryside and farming communities.
During the course of the general election, the now Prime Minister spoke repeatedly about having the backs of our farmers.
And yet, at the first opportunity, in this new Government's first Budget, our farming community has been betrayed. The Chancellor's decision that full agricultural property relief will cease as of April 2026 will have a devastating effect upon farms up and down the country. As one farmer told me recently, he feels this announcement is like a "dagger to the back", Mr Speaker.
Agricultural land constitutes 30% of Solihull West and Shirley and I am hugely proud of the work our local farmers do. The farmers who work this land are invariably based in small family farms, which have been passed down through the generations. And they are the very farms that will be punished most by this il thought through policy.
Now, the Government has said it will protect working people. The Government has said this won't affect most farms. The Government has said that only 27% of farms will be affected.
But, that is playing fast and loose with the figures; because that figure of 27% is based upon historic HMRC data from 2021-2022. It is therefore not a reliable representation of the prevailing conditions come April 2026 and thereafter.
We all know the price of land has increased in the period since 2021 to now. And therefore, even if price growth subsequently slows by April 2026, the value of land, and therefore the number of farms within the scope of this measure, will be far greater than that estimated by the Government.
Based upon the NFU's calculation, the Government's estimate is out by a factor of around three. And, of course, the HMRC data is based upon APR alone. That is not representative of the reality of the situation; because in the region of 40% of those claiming APR will also claim business property relief.
And so, what does this mean? It means bringing claims under both reliefs, within the same £1 million threshold, is much more restrictive than implied by the APR data in isolation.
This Government has also been slow to concede the £1 million relief cannot be transferred between spouses; specifically punishing widows, who will now face an impossible bill at a time of grief.
Now, throw in additional factors such as the impact of National Insurance Contribution rises and the Employment Rights Bill, which will have a knock on effect upon the rural economy and supply chain costs, and you have a tinderbox ready to ignite.
The Government has proposed a 10 year payment window for inheritance tax: suggesting that this would alleviate the significant financial strain on farms. But that is simply not the case. It demonstrates a fundamental misunderstanding of the profitability of farms. Farms may be asset rich, but they are also cash poor. They simply do not turn over enough profit to weather the storm of such an inheritance tax bill.
In many cases the only option, which is no option at all, will be to sell of some of their land or business, which in turn makes their farm economically unviable.
To paraphrase President Eisenhower: For the Government, farming looks mighty easy when your plough is a pencil and you're a thousand miles from the corn field.
So, I say to the Honourable Members opposite, do the decent thing. Stand by your principles. And walk through the lobby tonight in support of our farmers.
