It follows a Commons vote on Tuesday in which MPs backed the reforms to agricultural property relief (APR) by 327 votes to 182, despite strong concerns from farming representatives and several Labour backbenchers.
The changes would introduce a 20 per cent rate on agricultural land and farming businesses worth more than £1 million, although any unused portion of a new £1 million APR and business property relief allowance will be transferable between spouses and civil partners.
Mrs Scrogham said the Government was committed to supporting the sector and argued the Budget included positive steps for local farmers.
MP Michelle Scrogham (Image: Newsquest)
She said: “This government is committed to supporting our farmers with £5 billion invested in the farming budget over two years, which is the largest budget for sustainable food production in history. We have also seen the appointment of the first ever Tenant Farmer Commissioner, a new £150m capital grants round opened, and measures to deliver a profitable farming sector.”
“The budget included changes that will allow any unused part of the £1 million inheritance tax threshold to be transferred between spouses and civil partners. Whilst this doesn’t increase the allowance it does give more flexibility and make succession planning fairer.”
“This is one of the changes local farmers have been asking for, something I have been pushing for with Ministers, and it’s a positive measure. I was also pleased to see that local farmers will make savings because of the budget change to fully fund small businesses to train apprentices under 25.”
“This government has the job of turning round decades of problems in farming, as well as rebuilding public services, and fixing the public finances. We need to make sure that is done in as fair a way as possible, and that is what this budget is about.”
Farm machinery (Image: PA News/ Gareth Fuller)
Her comments follow concerns raised in Parliament by several Labour MPs. Markus Campbell-Savours, MP for Penrith and Solway, rebelled and voted against the changes, telling the Commons he had to do “all he could” for his community. Labour has suspended the MP.
He said many farmers had been reassured during the election campaign that APR would not be altered, adding there were “deep concerns” about the effect of the reforms on elderly farmers who had not yet made succession arrangements.
Treasury minister James Murray defended the reforms as a “fair way forward”, saying they maintained generous reliefs while helping to raise money for public services.
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Ahead of the vote, the National Farmers’ Union (NFU) called on Labour MPs to abstain. NFU president Tom Bradshaw warned the changes risked trapping “the elderly and terminally ill, with no ability to plan”, calling the situation “inhumane and cruel”.