12 Mar
Question
Changes to APR and BPR: Number of Farms Affected

During this session in the House of Commons, concerns centered around changes to agricultural property relief (APR) and business property relief (BPR) affecting farms in Wales. This discussion was critical due to the financial implications for family farms and the broader agricultural sector, forming a cornerstone of the Welsh economy.

The debate primarily featured questioning on a Government estimate indicating 500 claims affected across the UK by changes to APR and BPR, with few in Wales. The discussion highlighted tensions between Government reassurances and the anxiety expressed by various members and farming representatives over potential impacts on the farming community.

500

Estimated number of UK claims affected by changes to APR and BPR.

A critical aspect discussed was the allocation of the £337 million farming budget, which was protected despite opposition from Welsh Conservatives. This budget remained a vital point for support within the sector. Discussions pointed towards the Government's approach marked as a 'war on farmers,' accused of neglecting food security, especially by those opposing the changes.

£337 million

Protected farming budget for distribution to Welsh farmers.

The assurance given by Dame Nia Griffith, emphasizing sustainable support mechanisms and the protective legislative structure, was pivotal in countering criticisms.

Outcome

The session concluded with the Government maintaining their stance that the changes to APR and BPR would affect a minority, and financial protections were adequately in place to support Welsh farmers. No new commitments were made beyond the reiteration of current policies.

The issue raised tensions across party lines but concluded with confidence in the current government's measures to ensure continued farming support absent further in-depth scrutiny or amendments.

Key Contributions

John CooperConservative MP for Dumfries and Galloway
Conservative

Questioned the estimates of affected farms and likened the Treasury's actions to a war on farmers. Urged for more transparency and action to protect farmers' livelihoods.

Charlie DewhirstConservative MP for Bridlington and The Wolds
Conservative

Raised concerns about APR and BPR changes unrest among farmers, seeking reassurance on the sustainable farming scheme.

Dame Nia GriffithMinister

Insisted on the accuracy of government figures, mentioned consultations with the Treasury, and reiterated continued financial support for farmers amidst contentious budgetary voting.

Ruth JonesLabour MP for Newport West and Islwyn
Labour

Emphasized the importance of farming in Wales and criticized the opposition for voting against the Welsh Government's supportive farming budget.

Mims DaviesShadow Secretary of State
Conservative

Quoted NFU Cymru on the destructive policy impacts and questioned the Government's commitment to food and farm security amidst proposed tax changes.

Original Transcript
John Cooper
Dumfries and Galloway
Con
Question
UIN: 903060

3. What estimate she has made with Cabinet colleagues of the number of farms affected by changes to agricultural property relief and business property relief in Wales.

Charlie Dewhirst
Bridlington and The Wolds
Con
Question
UIN: 903066

8. What estimate she has made with Cabinet colleagues of the number of farms affected by changes to agricultural property relief and business property relief in Wales.

The Parliamentary Under-Secretary of State for Wales
Dame Nia Griffith
11:43

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.

John Cooper
11:43

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?

Dame Nia Griffith

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.

Charlie Dewhirst

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?

Dame Nia Griffith

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.

Mr Speaker

I call the Chair of the Welsh Affairs Committee.

Ruth Jones
Newport West and Islwyn
Lab

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?

Dame Nia Griffith

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.

Mr Speaker

I call the shadow Secretary of State.

Mims Davies
East Grinstead and Uckfield
Con
11:46

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?

Dame Nia Griffith

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.

All content derived from official parliamentary records