Cross-party MPs slam “betrayal” of farmers in Budget
7th November 2024
A debate in the House of Commons has seen dozens of MPs from across the country share stories of “devastation” from farmers in their constituencies.
An urgent question raised in the House of Commons this week (4th November) saw cross-party MPs grill farming minister Daniel Zeichner on the government’s changes to inheritance tax (IHT).
In the Autumn Budget chancellor Rachel Reeves announced a reduction in agricultural property relief, meaning 20% tax is due on death for assets over £1 million.
The news prompted a significant backlash from the farming community and cross-party MPs who say their constituents are devastated by the news.
Despite assurances for the government that the majority of farmers (73%) would be unaffected, many MPs questioned the figures.
Utterly betrayed
Mr Zeichner was fiercely questioned by MPs, with several asking how farmers can trust the government after repeated promises that IHT would be left unchanged.
Throughout the debate MPs were admonished several times by the speaker of the House of Commons for interrupting the minister’s responses.
Conservative MP Robbie Moore said: “Losing a farm is not like losing any other business – it can’t come back.
“Those are not my words, but the words of our prime minister at the National Farmers Union conference just last year.
“Over the weekend, we have heard gut-wrenching stories from farmers up and down the nation who feel completely and utterly betrayed by the measures in this Budget.”
He added: “After the secretary of state looked British farmers in the eye and specifically promised them that there would be no changes to agricultural property relief, how on earth can farmers believe a single word that his minister is about to say?”
READ MORE: Chancellor announces “hammer blow” reforms to agricultural property relief
READ MORE: ‘Please don’t despair’ – Jeremy Clarkson issues message to farmers on Ag Budget
Most farmers “unaffected”
The NFU and CLA have questioned the government’s claim that the new rules, coming into force in April 2026, will not impact 73% of farmers.
The claim is reportedly based on the number of claims for agricultural property relief in 2021.
Calling the changes to IHT a “silly idea”, Lib Dem MP Rachel Gilmour said 432 farms, out of 1,600 farmers in her constituency, will be affected – as well as their families, employees and shopkeepers who rely on the rural economy.
However the minister disputed her figures, saying the number of claims for APR in the Treasury’s figures were very close to the number in her constituency.
The minister was asked to commit to a full assessment of the policy, including the impact on national food security.
The Budget will stand
Mr Zeichner claimed that he had spoken to farmers who were pleased with the measures.
However, Charlie Dewhirst, Tory MP for Bridlighton and The Wolds, said of farmers in his constituency:
“I can categorically tell him that they do not [welcome the measures]; they are shattered by this announcement.
“The impact on my community will be devastating. I ask the minister today to do the right thing and withdraw these plans.”
Mr Zeichner confirmed that the government would not renege on its plans, and doubled down on his claim that he had been told “consistently” by farmers that the IHT system is being abused by wealthy individuals and companies buying up land over their heads.
“I am afraid that this is a Budget that stands in its entirety – and the whole country needs stability, so it will stand,” the minister added.
READ MORE: “Stealth tax” on pickup trucks buried in Autumn Budget
MPs share tales of struggling constituents
A number of MPs shared stories of their constituents from around the country – including Cumbrian farmers Andrew and Ada who are largely surviving on Ada’s pension.
Meanwhile, a 75-year-old farmer in the North Cotswolds told his MP that the chancellor and Defra secretary of state have “destroyed everything I have ever worked for”.
Reform MP for Ashfield Lee Anderson said: “Sam Wilson is a farmer in Ashfield. He is not a rich man; in fact, he has not drawn a wage in the past four years.
“Will the minister look me in the eyes and tell me how many farmers he has spoken to in the past few months who agree with this hare-brained scheme?”
Mr Zeichner claimed the last farmer he had spoken to over the weekend had congratulated him on the plans, drawing laughter from the House.
However, Reform MP Richard Tice alluded to the fact that farmers in their 80s and 90s are “seriously considering committing suicide” before the new IHT rules come into force.
The comment prompted calls of “Shame! Shame on you!” from the House, and the minister reiterated calls to “use language carefully” given the stress and anxiety facing farmers.
Mr Tice’s comment may have been a reference to the recent reports of a farmer who took his own life the day before the Budget was announced – which the farmer’s son believes was an attempt to ensure the farm could be passed down before the tax came into force.
Low profit industry
Tenant dairy farmer and PC for Caerfyrddin, Ann Davies, pointed out that upland farmers in mountainous and hilly areas in Wales have an average income of £18,600.
Meanwhile, Kevin Hollinrake, Tory MP for Thirsk and Malton, said the return on capital employed in farming is 0.5%, according to the government’s own figures.
This is around a 20th of the typical profit margin in the UK.
Mr Hollinrake asked the minister how he could justify taking 40 years of profit away from a typical farmer.
Mr Zeichner responded by saying: “The hon. Gentleman may wish to remember that the agricultural transition was embarked upon by the previous Government.
“It is a seven-year transition process, and we are just over halfway through.
“It is important that it is maintained in a stable and sensible way, and that is exactly what we are doing.”
There will be no forever
Rupert Lowe, a Reform MP for Yarmouth who farms 865 acres referred to the tax as a “cruel assault on British family farms” and said the minister was trying to “defend the indefensible”.
Meanwhile Sir Roger Gale, Conservative MP for Herne Bay and Sandwich, said:
“In the rural England that I am privileged to represent part of, they say that you should live as if you are going to die tomorrow and farm as if you are going to live forever.
“Do the Government not understand that if we inheritance-tax our farms out of existence, there will be no forever, and there will be no food from what was once the garden of England?”
However, the minister said that he did not recognise his characterisation of the future.
READ MORE: Petition to stop inheritance tax changes reaches over 125k signatures in two days
Minister’s responses
While IHT dominated the conversation, a number of other concerning measures in the Budget were also highlighted, including:
Increased national insurance contributions, coupled with a lower national threshold; an accelerated reduction in de-linked payment rates; higher taxes on double-cab pick-up vehicles; and new taxes on fertilisers.
Responding to the intense questioning and criticism, the minister would not be drawn on whether the changes to IHT were down to Defra or the Treasury.
He repeatedly stated the government’s belief that the majority of farms would not be affected, justifying the change by saying it aims to crack down on wealthy individuals and companies buying land to evade tax.
The minister was criticised for several times urging critics to “look at the detail” of the Budget.
West Suffolk Tory MP Nick Timothy said:
“When [farming] families hear the minister say that they do not understand the detail, or that they should listen to commentators who agree with the minister but not them – commentators who probably have nothing to do with farming in the first place – they will be furious with him.”
He added: “If it is not such a big deal, will he explain why more than 130,000 people have already signed the NFU petition telling him to change the policy?”
Mr Zeichner also stressed several times that the government had to make difficult choices to ensure a stable economy and improvements to public services.
He also urged farmers to sign up for Environmental Land Management schemes to make the most of the available funding – and reported that take up is increasing.
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