Farming News - DEFRA: Statement from Chancellor and Secretary of State for Defra on farming
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DEFRA: Statement from Chancellor and Secretary of State for Defra on farming
Chancellor of the Exchequer Rachel Reeves and Secretary of State for Environment, Food and Rural Affairs, Steve Reed said:
“Farmers are the backbone of Britain, and we recognise the strength of feeling expressed by farming and rural communities in recent weeks. We are steadfast in our commitment to Britain’s farming industry because food security is national security.
“It's why we are investing £5 billion into farming over the next two years – the largest amount ever directed towards sustainable food production, rural economic growth and nature’s recovery in our country’s history.
“But with public services crumbling and a £22 billion fiscal hole that this Government inherited, we have taken difficult decisions.
“The reforms to Agricultural Property Relief ensure that wealthier estates and the most valuable farms pay their fair share to invest in our schools and health services that farmers and families in rural communities rely on."
Background:
APR
- Depending on people’s individual circumstances, up to £3 million can be passed on free of inheritance tax. Anything beyond that will be taxed at 20%, rather than the usual 40% normal rate of inheritance tax. This tax can be paid tax-free in instalments over 10 years, rather than immediately. And if transfers to individuals are made more than 7 years before death, those will continue to fall outside the scope of inheritance tax in the normal way.
- Around 500 claims a year are expected to be affected. Our figures are based on the latest available information from HMRC on actual claims for Agricultural Property Relief. More information in this explainer: https://www.gov.uk/government/news/what-are-the-changes-to-agricultural-property-relief
- The government is better targeting these reliefs to make them fairer, protecting small family farms. The latest figures show that the top 7% (the largest 117 claims) account for 40% of the total value of agricultural property relief. This costs the taxpayer £219 million. The top 2% of claims (37 claims) account for 22% of agricultural property relief, costing £119 million.
We have also announced in the Budget:
- £5 billion for the farming budget over two years – with the largest ever directed at sustainable food production and nature’s recovery in our country’s history. ELM schemes will remain at the centre of our offer for farmers and nature, with the Sustainable Farming Incentive, Countryside Stewardship Higher Tier and Landscape Recovery all continuing.
- £60 million through the Farming Recovery Fund to support farmers affected by unprecedented extreme wet weather last winter.
- £208 million to save the collapse of our defences against disease threats and protect the nation from outbreaks that can threaten our farming industry, food security and human health.
The government's New Deal for Farmers:
- Seeking a new veterinary agreement with the European Union to cut red tape at our borders and get British food exports moving again.
- Protecting farmers from being undercut by low welfare and low standards in trade deals.
- Lowering energy bills by switching on GB Energy and introduce grid reform to allow farmers to plug in their renewable energy into the National Grid.
- Introducing a land-use framework which balances long-term food security and nature recovery.
- Using the Government’s own purchasing power to back British produce so that 50% of food brought in hospitals, army bases and prisons is locally produced or certified to high environmental standards.
- Introducing first ever Cross-Government Rural Crime Strategy ever of its kind to crack down on antisocial behaviour, fly-tipping and GPS theft.
- Setting up a new British Infrastructure Council to steer private investment in rural areas including broadband rollout in our rural communities.
Food security
- The Government recognises that food security is national security. We produce 61% of all the food we need, and 74% of food which we can grow or rear in the UK for all or part of the year.
- Our high degree of food security is built on supply from diverse sources including strong domestic production and imports through stable trade routes.
- UK consumers have access through international trade to food products that cannot be produced here, or at least not on a year-round basis. This supplements domestic production, and also ensures that any disruption from risks such as adverse weather or disease do not affect the UK's overall security of supply
Supply chain
- The government has committed to making the supply chain work more fairly, and next steps on reviews into the pig, egg, poultry and fresh produce will be set out shortly.