Chancellor of the
Exchequer
and Secretary of State for
Environment, Food and Rural Affairs, 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.
- 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.
