Last week there was an Opposition Day debate on ‘UK Farming and Inheritance Tax’. I was unable to attend that debate due to serving on the Environmental Audit Select Committee, which was meeting at the same time. Instead, I attended and spoke in a Westminster Hall debate on ‘The Future of Farming’ which began later the same day.

In my speech, I called for a doubling of the farming budget to give farmers long-term certainty; called for better regulation of the food sector to rebalance power between farmers and supermarkets and to end supermarkets’ shameful use of ‘farm-washing’; and urged the government to embrace its role in public procurement to offer free school meals based on good, locally grown sustainable food. If I’d had more time, I would also have called for more government support to help young farmers and new entrants to farming.

I abstained on the vote on the Conservative motion because I do not agree fully with either the Conservative or the Labour position on this issue. The Conservative motion simply calls for maintenance of the status quo – even though it is widely acknowledged, including within the farming community, that there is a genuine problem of some wealthy individuals buying land simply to avoid inheritance tax. This drives up land prices and makes it harder for new entrants to farming; and if we’re serious about the future of farming, we surely have to support new entrants. At the same time, there are clearly aspects of Labour’s inheritance tax proposals that need clarification and potentially amendment.

Currently there is still a worrying lack of clarity on the likely impact of the proposals on different groups. I wrote to the chancellor several weeks ago to ask her to provide this clarity. Last week I wrote again to the chancellor to ask her to consider three potential ways forward that could help address concerns about the impact of IHT on farming, while still addressing fairness:

1. A time limited concession for farmers over 75 years old, exempting them from the 7-year taper rule on gifts to descendants.
2. Changes to the thresholds and rates, which could enable the Treasury to target the measure better to deter the use of land as a tax loophole while simultaneously safeguarding small and medium-sized family farms.
3. ⁠A full IHT exemption for all land within Environmental Land Management Schemes or other agri-environment schemes, as long as the land is in the scheme/s at the time of death and remains in scheme for 10 years afterwards.

I support policies that close tax loopholes, and I support policies that ask those with the broadest shoulders to contribute a little more to support much-needed investment in public services. At the same time, I support policies to ensure a thriving, sustainable future for UK farming, and I have been outspoken and passionate in calling multiple times for more investment in nature-friendly farming. I will continue to listen closely to farmers and to take an evidence-based, nuanced approach to this issue, as I do for all other policies.

Notes:
You can read my letter to the Chancellor on 20th November here

You can read my letter to the Chancellor on 5th December here

Watch my speech in the debate on the future of farming on Instagram here