I must begin by drawing attention to my entry in the Register of Members’ Financial Interests.
I rise to support the land-based and agrifood sector in my constituency, a sector that stands bewildered at what this Government are doing to it—a Government who it thought had its back, and that were going for growth. A farmer constituent wrote to me shortly after the Budget, saying:
“All these changes have meant that our already tight margins are non-existent. The next few months are going to be spent calculating if it would be better to just sell up and no longer farm.”
That is hardly surprising, given that the average salary of a farmer in this country is a little over £22,000, although farmers are described by many as being multimillionaires.
My constituents’ disappointment is heightened by the Government’s assurances before the election, and the specific promise that they made on APR and BPR. I think that, if I may say so without damning his career too much—I see that he is no longer in the Chamber—the hon. Member for Penrith and Solway (Markus Campbell-Savours) did us a service by reminding us of that promise. However, we should not be surprised. My hon. Friend the Member for North Norfolk (Steff Aquarone) and the hon. Member for Perth and Kinross-shire (Pete Wishart) have already drawn attention to John McTernan, who very helpfully allowed the mask to slip when, referring to farmers, he said that we should
“do to them what Margaret Thatcher did to the miners.”
He went on to say that farming was
“an industry we can do without… we don’t need small farmers.”
I hope that when the Minister winds up the debate, he will do us a service by distancing himself completely from those sentiments.
The Government’s estimate of in-scope farmers is either incompetent or tricksy and duplicitous. Setting aside Ministers’ apparent confusion over what constitutes an acre and what constitutes a hectare, we are of course indebted to the Central Association of Agricultural Valuers, which says that 75,000 farms over a single generation will be affected—five times the Government’s estimate. I think the Minister should reflect on that, because there is no shame in admitting that the Government and their officials have got this wrong. There is time to fix it, and there is time to look at such independent sources, to compare and contrast their data with the data that the Government’s officials have produced, and to tack accordingly. Were the Minister to do so—I appreciate the Treasury pressures that he is under—his stock among the farming community would rise substantially in these early few months of his tenure.
I have a helpful suggestion: the Government have picked the wrong target. I think that many Members of this House would be perfectly happy for this Government or any Government to target those who have, over years, used land to avoid inheritance tax, particularly institutional investors, hedge fund managers and oversea investors, who have artificially put up the price of land in this country, which forces new entrants out of the market and distorts it. That is a perfectly legitimate thing for any Government to do, but what this Government are doing is picking on small and medium-sized farms, many of which have been in families for generations. The Government are doing the productive sector of our land economy in this country a massive disservice and, frankly, are acting in a way that is unfair and unworthy.
I implore the Minister, who I know is a good man, to think again. He should talk to the Treasury, and turn his fire on individuals and institutions using land to avoid tax, which forces up land prices. Hands off our family farms!
3.56 pm