It is always a pleasure to serve when you are in the Chair, Sir Mark. I thank the right hon. and learned Member for Torridge and Tavistock (Sir Geoffrey Cox) for bringing this debate in his characteristically forceful way. He seduces; he charms; he flatters. I particularly enjoyed his account of the centuries it has taken to produce the wonderful farms we see in Devon—centuries, of course, that preceded the current agricultural property relief regulations. I also enjoyed his account of the weather that the previous Government created, which left the farming sector in such a parlous state for the new Government to inherit. But he also encouraged me to visit Devon, and I can tell him that, actually, within my first 10 days of being appointed as Minister I had made my way to Devon, as I had done in opposition on a number of occasions, and thoroughly enjoyed it.
However, I also frequently heard from local people that they were concerned about others coming to buy up land over the top of local people. I suspect that we can share our concerns on some of these issues. The right hon. and learned Gentleman referenced the excellent debate that he secured in this Chamber last year on the future of Dartmoor, which I will come on to.
Many important points have been raised, and I have listened carefully to all the thoughtful contributions. I was particularly struck by the comments of the hon. Member for South West Devon (Rebecca Smith). I will go away and look carefully at her points about the
moorland stocking rates, which I know my officials are looking at closely, and how they affect Greenwell farm. I always listen closely to the hon. Member for Strangford (Jim Shannon), and the hon. Member for Honiton and Sidmouth (Richard Foord) also made important points. I was struck by the points made by the hon. Member for Winchester (Dr Chambers), particularly around border controls. I remind him that one of the first things we did was to strengthen those controls, so I very much agree with him about threats at the borders.
We absolutely recognise that the farming sector is vital. Family farms are crucial: they produce our food, steward the environment and look after nature. We are all indebted to farmers across this country for doing that, and we all recognise the stresses and strains, the mental health challenges, which the hon. Member for Winchester mentioned, and the pressures from the weather and from disease in the last few years. That is why this Government are investing £5 billion into farming over the next two years—the largest amount ever directed towards sustainable food production, rural economic growth and the recovery of nature in our country’s history. That should send a powerful message to farmers about the value we place on all that they do. Within that, we have committed £1.8 billion for environmental land management schemes, delivering improvements to food security and biodiversity, tackling carbon emissions and improving water quality, air quality and flood resilience.
I will address the point about basic payments made at the beginning by the right hon. and learned Member for Torridge and Tavistock. He is right: we are accelerating the end of the era of payouts to landowners simply for owning land, and the fastest reductions in subsidies will be for those who have historically received the largest payments. For example, it is true that the 4% who received more than £100,000 in subsidies in 2020 will receive no more than £8,000 in 2025, whereas the majority of farmers who receive less than £10,000 to start with will see a gradual reduction in their delinked payments, but they will all have access to ongoing funding through SFI and other schemes. That is the key point. We are speeding up that vital transition, which I fully recognise the previous Government set about initially, to get to a better place in terms of the environment.
The issue of capital grants is interesting, because I must tell the Opposition that there is no magic money tree. The reason why the capital grants have stopped is that they are oversubscribed. We have seen an unprecedented demand this autumn. The Rural Payments Agency received more applications for capital grants from May to November 2024 than over the whole of the 2023-24 financial year. They are also worth more—as of November ’24, the standalone capital grant applications were up by 45% compared with the whole of the last financial year. This is a basic problem that we inherited: there is no management of public funds. That is the core problem that the whole of Government faces with our inheritance from the Conservatives, and we will deal with those points.
I turn to the Dartmoor issues, which the right hon. and learned Member for Torridge and Tavistock rightly raised. On 29 October, we appointed Phil Stocker to chair the new Dartmoor Land Use Management Group, which was one of the central recommendations of the Fursdon review. We are moving forward with David Fursdon’s recommendations to create a long-term
plan for land use that preserves the cultural heritage of the area, recovers nature and boosts food production. The group will provide a space for stakeholders to discuss important issues and work to strike the right balance between food security and preserving the diversity and abundance of nature in the area. Mr Stocker will be responsible for steering the group to meet its aims and objectives, and one of his first tasks will be to identify and appoint members who bring the necessary knowledge, expertise and engagement to the group. That process is under way, and we expect the first meeting to take place shortly. I absolutely hear the right hon. and learned Gentleman’s invitation, and at an appropriate point I will, I hope, visit and constructively support the work being done.
I also understand that the right hon. and learned Gentleman met officials from Natural England in October for an update on progress implementing the Fursdon review. We have been in discussions since I took up the role, and we wish the whole process well.
I will turn to the agricultural property relief issue—a well-rehearsed debate that will continue in the main Chamber tomorrow. I will repeat the points that I have made before. We are confident that the changes are proportionate and that smaller farms will be protected. Those above the threshold will have 10 years to pay the tax, with zero interest incurred. No one is doubting that it was a difficult decision, but the truth is that the economic situation that the Government inherited has required us to make tough choices. I reassure Members that based on the figures we have, which are the only ones we can go on—actual claims on estates—we reiterate our point: we feel that the vast majority of people will be not be affected.