Tories: Farmers will have to stump up hundreds of thousands of pounds

Farmers will have to stump up hundreds of thousands of pounds under Labour’s inheritance tax plans, the Conservative Party has claimed.

Shadow business secretary Kevin Hollinrake warned Labour MPs who intend to have a pint in a local pub and a chat with farmers this weekend to “think again” following yesterday’s Budget.

Greg Smith, Conservative MP for Mid Buckinghamshire, also described the Budget as a “full-frontal financial attack on our farmers” as the issue was repeatedly raised in the House of Commons on Thursday.

Business minister Douglas Alexander defended the Government’s reforms of inheritance tax, saying “difficult and necessary choices” had to be made.

From April 2026, the first £1 million of combined business and agricultural assets will continue to attract no inheritance tax. But for assets over £1 million, inheritance tax will apply with 50% relief, at an effective rate of 20%.

During business and trade questions, Mr Hollinrake told the Commons: “The Labour members who are thinking of going back to their seat for a pint in a local pub and a chat to local farmers, I think I would think again.

“A publican contacted me last night, of a mid-size pub saying to me that because of yesterday’s changes, he will be £120,000 a year worse off, moving him from profit into loss. When they said their plans were fully costed and fully funded, yesterday was a massive broken promise wasn’t it?”

Business minister Sarah Jones replied: “(Mr Hollinrake) oversaw the worst Parliament for living standards in modern history, and we couldn’t choose that inheritance, and we have made choices.

“I would say to (Mr Hollinrake), would he rather we didn’t compensate for the infected blood scandal? Would he rather we didn’t compensate for the Horizon victims, for whom there was no money in the Budget on his watch? Would he rather we didn’t invest in the health service?

“Would he rather that we didn’t increase the minimum wage? Would he rather we didn’t support carers? Would he rather that we made choices that he made? Which was to cut national insurance for workers when he had no budget to do so.”

Mr Hollinrake then said: “Their choice was to hit businesses and that’s because there’s not an ounce of business experience amongst any of them.

“Labour’s death taxes will hit farms and businesses. Families with a typical farm will have to find hundreds of thousands of pounds or see their farms broken up and sold.

“The Environment Secretary, their colleague, said 10 minutes ago they had no intentions of putting death taxes on businesses. That was a broken promise wasn’t it?”

Ms Jones replied: “I’m not going to take any lectures from the opposition who said – and I quote – ‘F business’. The cheek of the opposite party to come at us when we are clearing up the £22 billion black hole which we inherited when we are setting in train stability.

“I spent quite a lot of yesterday, as (Mr Hollinrake) would expect, talking to businesses, having meetings with businesses about the Budget and its implications, and we talked about the potential for growth, we talked about the long-term stability and changes that we are making on this side of the House, unlike the previous government.”

Later in the session, Conservative former minister David Mundell asked: “Farming and agricultural businesses employ thousands of people in my constituency and make a huge contribution to the local economy, so can the minister set out exactly how yesterday’s Budget will help them develop and grow?”

Business minister Douglas Alexander replied: “Farmers, like any other business people, need the stability that will be delivered as a consequence of fixing the foundations that were set out yesterday.

“I similarly represent a constituency with a number of farmers, I’m aware of the concerns that have been raised in relation to inheritance tax, but frankly there are difficult and necessary choices that had to be made yesterday, because of the choices that were not made by the government in which he served.”

Commons Leader Lucy Powell later faced a series of questions from Conservative MPs about the impact of the Budget on farmers.

Luke Evans, MP for Hinckley and Bosworth, said farmers woke up “broken and devastated” following the Government’s announcement.

He said there should be funding to support those farmers who are “going to suffer” as they are unable to pass on their family farm, adding: “That impact on food security is going to be severe and shocking.”

Commons Leader Lucy Powell replied: “This Government is incredibly committed to our farming community, to our rural communities, to ensuring food security.”

She acknowledged there have been “difficult” decisions, adding: “I’d gently say to (Dr Evans) that he should be careful about scaremongering about the actual reality of what is happening here because three-quarters of those currently entitled to the full relief will still be entitled to the full relief after the measures in this Budget.”

Conservative MP John Cooper (Dumfries and Galloway) said: “I’m aghast to hear that it is scaremongering to talk about the damage that’s being done to agriculture, I can tell you in Dumfries and Galloway, the howls of concern are real.

“We really need to discuss this, Britain cannot live by air-freighted mangetout alone. This Budget imperils food security in this country, and we must have action on that. It’s incredible that the Defra Secretary (Steve Reed) seems so uncaring on this.”

Published: 31/10/2024 by Radio NewsHub