Changes to APR and BPR: Number of Farms Affected

I have spoken to the farming unions in Wales, and I understand their strength of feeling. These changes are expected to affect around 500 claims across the whole UK, with very few in Wales. Meanwhile, most importantly, the Welsh Government and this Government have protected the farming budget at its current level, while the Welsh Conservatives tried to block that money from reaching farmers by voting against the Welsh Government’s budget last week.

The Scotland Office is conducting a series of agricultural roundtables, talking directly to farmers and putting together statistics to push back against the orthodoxy that only a tiny number of very wealthy estates will be affected, which is simply not the case. This increasingly looks like a war on farmers by the Treasury. What part is the Minister playing in fighting back against it?

The Treasury is confident in its figures. Specific questions on the methodology are a matter for the Treasury, but I repeat that the changes to APR are expected to affect only 500 claims across the whole UK, with very few in Wales. As the hon. Member knows, we are committed to our farmers, through keeping the £337 million block grant, which the Welsh Government have passed on to farmers directly.

Farmers across the UK have already been rocked by the changes to APR and BPR, and yesterday we had shock news that the Department for Environment, Food and Rural Affairs will take no new sustainable farming incentive applications in England. What reassurances can the Minister give farmers in Wales that the sustainable farming scheme will be delivered in full and on time on 1 January next year?

As the hon. Gentleman knows, my good friend the Deputy First Minister of Wales has spent a lot of time talking to farmers. We have absolutely protected the budget for farmers, as have the Welsh Government, so the full £337 million will go directly to farmers, despite his colleagues in the Senedd trying to block it last week.

I call the Chair of the Welsh Affairs Committee.

The Welsh Affairs Committee is launching its inquiry into farming in Wales this week, because we know that farming is a cornerstone of the Welsh economy. The Welsh Government budget contained over £300 million to support Welsh farmers. Does the Minister agree that it is a shame that the Opposition parties are playing fast and loose with farmers’ livelihoods by voting against the Welsh Government budget last week?

Indeed, my hon. Friend is absolutely right. It is an utter disgrace that Opposition parties decided to vote against the budget last week. They were effectively trying to block money going to farmers—what a disgrace.

I call the shadow Secretary of State.

The Government have said that they are concerned, as we all are, about our future security, so why is food security expendable in Wales and beyond? That is the message from farmer Stella Owen of the National Farmers Union Cymru, who has said that the Government’s actions are “destructive” and “threaten the future of family farms” across Wales. How many of those family farms is the Minister prepared to see go under before she and the Secretary of State step up and act in the interests of that key sector by helping the men and women who are livid, worried and fearing for their livelihoods?

As I am sure the shadow Secretary of State has been reminded many times, difficult decisions had to be made to fund our public services, but the changes still leave a significant amount of relief in place. Farming parents will typically be able to pass on up to £3 million to their children without paying any inheritance tax at all, and above that amount inheritance tax will be paid at a reduced effective rate of up to 20%, rather than the standard 40%. Estates have up to 10 years to pay any tax due, and it will be interest-free. Those terms are not available to others. That fair and balanced approach maintains support for family farms while also fixing the public services on which we, including farmers, rely.