Farming Industry

The Secretary of State meets the Deputy First Minister on a regular basis and the inter-ministerial group for environment, food and rural affairs convenes regularly to discuss important issues, including agriculture. I am personally looking forward to speaking at the National Farmers Union Scotland conference in February alongside Scottish Government Ministers. We have been working hard to positively reset relations with the Scottish Government. The recent Budget saw Scotland receive an above-population share for agriculture, and ringfencing of the budget was removed to respect the devolution settlement.

I look forward to hearing the Minister at the NUFS dinner. What conversations has she had with the Scottish Government and the Treasury on the agricultural property relief reforms and their impact on tenant farmers? My understanding from answers to the questions I have asked is that they do not have the same opportunities to ameliorate the APR changes as others do, and it feels like that cohort has been completely forgotten by the Government. Can we urgently review that, if that is indeed the case?

These reforms still provide a very significant level of tax relief, with the first £1 million of combined business and agriculture assets continuing to receive 100% relief in most cases. Additional assets will still receive relief at a rate of 50%. The Budget was designed to protect the payslips of working people while raising record funding for public services in Scotland. The hon. Lady should outline where she thinks that money should come from if she thinks that the wealthiest landowners should not be paying more tax.

Inheritance tax is a necessary tax. That view is tacitly shared by Conservative Members given that they did not lift a finger to abolish it when they were in power. Do Ministers agree that taxing the most valuable farm estates at half the rate that other inheritance tax payers pay is an essential step to enable record spending on sustainable farming and to deliver record high budget settlements for Scotland? If Opposition Members disagree, they should go back to their constituencies this weekend and explain what they would cut, rather than waiting until halfway through the fiscal year, as the Scottish Government are prone to do.

I could not agree more with my hon. Friend. Opposition Members have told us about how they want to see the benefits of the Budget, but they are not prepared to support any of the tax-raising measures in it. This Budget secured billions for Scotland, but the SNP voted against that. It delivered a pay rise for 200,000 of the lowest-paid Scots, but the SNP voted against that. It ended Tory austerity, and the SNP voted against that.

I call the shadow Secretary of State.

May I associate myself and the Official Opposition with the Secretary of State’s comments regarding Denis Law, a proud son of Aberdeen who never forgot his home town? Indeed, his legacy lives on through the Denis Law Trust, which does such good work with young people in and around the city. This Saturday, the National Farmers Union of Scotland is planning a national day of action in protest at the pernicious, ill thought through and destructive changes to agricultural property relief and its threat to the future of family farms in Scotland. I will be attending the local rally in Aberdeenshire to show my and my party’s support of our farmers. I notice that the Edinburgh rally is taking place but a few miles from the Secretary of State’s own constituency in Ingliston. Does the Minister know whether he will be attending the rally?

We are in ongoing discussions with the National Farmers Union of Scotland. As I have said, I am proactively attending its conference next month. I am slightly surprised to hear the shadow Secretary of State talking about the changes in the Budget and not welcoming their announcement or, indeed, their implications, such as the International Monetary Fund and the OECD both predicting that Britain will be Europe’s fastest-growing economy in the coming years. The UK is the only G7 economy, apart from the US, to have had its growth forecast upgraded by the IMF for this year. It has also gone ahead of Germany, China and India to become the second most attractive company for global investment, trailing only the US, according to PwC’s annual survey. If he wants to talk about—

Minister, please! I call the shadow Secretary of State.

Of course we do not agree with the policy in the Budget; the policy is purely wrong. Farmers were not consulted on it. Indeed, they were misled by the Labour party when they were told that this would not happen. It will lead to the demise of the family farm and undermine our food security, as farmers will simply stop farming. The concern, worry and fear that these changes have wrought on Scotland’s farmers are real and are on these Ministers and their Government. If the Secretary of State will not attend the rally this weekend, will he and the Minister at least use their position as Scotland’s man and woman at the Cabinet table to urge their colleagues to do as the NFU asked, which is to stop, reset, reflect, properly engage and consult on an alternative approach to stop this change?

As the hon. Member is perfectly aware, the majority of estates will not be affected. We are in ongoing conversations with the National Farmers Union of Scotland. We have asked it to come forward with some worked examples of estates that may be impacted. It has not done so yet. Of course, we will continue with our ongoing conversations, but the majority of estates will not be affected.