(6 days, 19 hours ago)
Lords ChamberI do not know if the noble Lord’s memory extends to which of us won on that occasion. It is true that there has been an improvement, but it would be a mistake to assume that those provisions would cover all the cases to which I drew attention in my remarks.
My Lords, it is a pleasure to follow my noble friend Lord Howard of Lympne and indeed all noble Lords who have made such compelling arguments for the amendments in this group. I rise to support Amendment 107 in the name of my noble friend Lord Sharpe of Epsom, to which I have added my name. I again refer the House to my registered interests, particularly as a dairy and livestock farmer and as a forester.
The farming community needs help after the run of negative actions taken by this Government: the slashing of delinked payments, followed swiftly by the cut-off in sustainable farming incentives with no notice, contrary to previous promises. That leaves a large number of farms with negligible environmental payments, incentivising the intensification of their farming operations, undermining their businesses and undermining nature restoration. To that is added the more general burden placed on all businesses of increased employer national insurance contributions.
Farmers’ long-term planning has been thrown into chaos by the reduction in inheritance tax reliefs on agricultural and business property. It is a burden that farming businesses simply cannot afford and will lead to the sale and break-up of many of these on the death of a family member, with families also losing their homes and businesses as a result.
In the run-up to the introduction of the reduced reliefs in April 2026, the financial incentive for elderly or terminally ill farmers and business owners to take their own lives increases. In Committee, I was grateful to the Minister, who is again in his place today, for his promise to speak to his ministerial colleagues at Defra and the ONS about keeping accurate and timely data on farmer and business-owner suicides. I ask him again today: what has been the result of those discussions? How can the Government assess the impact of this measure on suicide rates if they simply rely on out-of-date and insufficiently granular ONS data?
On Amendment 107, the arguments in favour of granting farming an exemption from these Bill provisions have been well made in Committee, and I will hit only the headlines. Farming is almost uniquely exposed to seasonality in its harvesting operations, as well as the weather variability in the timing of those operations. Livestock farmers have to look after their animals every day and rely on casual labour to fill in gaps due to illness or scheduling issues. That requires flexibility in its engagement with seasonal and part-time or casual staff. There are penalties enough in weather unpredictability without introducing more through compensating staff for changing hours at short notice or having to compensate for sickness from day one. These obligations are simply unaffordable for farmers and unworkable in practice.
Farming operates on cycles that are unknown in other businesses. It is easy enough to assess the quality of work and the suitability of staff in retail, offices and manufacturing, even after the first day or so. However, most farming workloads are solitary, with little oversight. We know whether a new employee has drilled a field correctly, looked after animal hygiene effectively, checked weed growth around new trees without damaging the trees, or ensured that livestock is back in calf in the necessary window, only months after those operations are performed. Reducing probationary periods and leaving farmers exposed to human resource and litigation risks, potentially from day one, is simply not acceptable or workable.
As my noble friend Lord Deben highlighted in Committee, this is not a Government who have a background or experience in the farming or rural economy. That lack of experience is often evident, and I urge the House and the Government to listen to those of us who have that experience and to support this critical amendment. I hope to hear encouragement from the Minister that the Government are listening.
My Lords, the amendments in this group relate to the disapplication of provisions of the Bill to certain sectors and employment types. Amendment 94 would give the Secretary of State the ability, through regulations, to vary or exempt specific sectors from the provisions of the Bill. We do not support this amendment as we generally do not support facilitating two-tier employment systems in which certain businesses have statutory obligations that they must adhere to and others do not. Instead, we are focused on ensuring, as part of the Government’s consultation process ahead of implementation, that sectors likely to be disproportionately affected are properly engaged and supported to operate under the Bill with minimal disruption.
(1 month, 2 weeks ago)
Lords ChamberMy Lords, I hope the Minister listened with great care to what my noble friend said. I declare an interest as a partner in a small farm. I was walking the fields only yesterday, looking at the disastrous effects of the fact that we have had practically no rain. It is not much more than a year ago that I had to look at the disastrous effects of having too much rain. We are an organic farm, and therefore we have looked after the soil very carefully and suffered less than others during that period. But many farmers were not able to get a harvest or plant because the weather was so bad, and they therefore lost two years.
I believe that we have a real problem of diversity here. We often talk about diversity as if it is about race or ethnic minority, but it is so interesting that no member of the current Cabinet represents a rural constituency or is, as far as I can discover, a country person at all. There are 9 million people who live in the countryside and who are hardly represented at all. To be perfectly fair, the shadow Cabinet does not have, as far as I can find out, anybody who is a country person of the sort we are talking about. This is something that has happened to our society, and we who are country people find it extremely difficult. Therefore, I want to say to the Minister, who is known for his generosity, that it is crucial for this Government to show that they are listening to and thinking about this section of the community.
The seat that I once represented is now represented by a Labour Member. She must find it very difficult to appeal to many of the people who voted for her because it does not appear that the Government whom she supports have really understood how the countryside works—in other words, what agriculture is. I could, of course, make a great statement about the terrible situation of the IHT changes, which were rather peculiar given that no previous Labour Chancellor has ever thought them a good idea. I could make all those arguments, but I want to tone down what I might have said to one single concept: Governments can get the support of the nation only if the nation feels that they understand it—not just bits but the whole of it. The introducer of the previous amendment, who I am afraid is just leaving—I was going to be polite about it—rightly talked about the Bill having to represents both sides of industry. I ask that the Bill also represents different parts of industry, and one of those parts is the rural agricultural scene. My concern is that this has not been looked at through the eyes of the countryside.
It may be that, when the Government do that, they do not want to make any changes, but it does not seem possible for the Government to convince people that those changes are not necessary unless they have done what Amendment 133 asks them to do. All we ask is that the Government look in detail at the effect of the Bill on the agricultural industry.
In ending, I want to say something true and really serious. We are entering a period in which food security will be crucial. Climate change means that we will have less and less opportunity to import from wide areas of the world. I remember, when I was Minister of Agriculture, being interviewed by the cleverest man in Europe, Peter Jay, who said, “We don’t need a Minister of Agriculture because we’ll always be able to import food from somewhere else”. How madly wrong that was. Climate change will mean that we find it more and more difficult to fill our shelves at home. Nothing undermines a Government more than two or three days of people being unable to eat what they want to eat.
Therefore, I say to the Government that I hope that this is a helpful amendment—and, if the Government say that they will not do what it asks, that says something to the 9 million people who live in the countryside and, even more, to the many people who keep food on our plates. No farmers, no food. If farmers are to do the job properly, the Government have to recognise that the weather that farmers deal with, which has always been the thing that is different about agriculture compared with any other industry, is now going to be a difference that is made very much worse, as we have worse and worse examples of more extreme weather. In general terms, the Government—unlike other parties—have been extremely good on climate change and I ask them not to let themselves down on this but to say, “Yes, we will look and see exactly what these provisions will do for agriculture—and, if we find that they need alteration, we will be able to come back with the facts”.
My Lords, I support Amendment 133 from my noble friend Lord Sharpe of Epsom. It is a great pleasure to follow my noble friend Lord Deben. In doing so, I draw attention to my registered interests, in particular as a dairy and livestock farmer.
I am most grateful to my noble friends for their supportive comments for British farmers. I have asked in Written Questions and in debates whether the Government would commit to keeping detailed and timely data on the number of farmers and family business owners taking their own lives in the run-up to the introduction of the reduced inheritance tax reliefs, due in April next year. So far these requests have been denied or ignored. We know that a number already have taken that dreadful step—and, as the deadline approaches, the risk will only rise. It would appear to be callous in the extreme that the Government refuse to take responsibility for this tragic human cost of their Budget decisions. Will the Minister commit to keeping and publishing the data in a timely manner?
Farming has unique employment challenges, as others have already mentioned in this short debate—and as indeed the whole country is now aware, thanks to the popularity of “Clarkson’s Farm”. Arable crops and silage need to be harvested when the weather allows and when they are ready for harvest. This leads to high-pressure operations at short notice and often at anti-social hours. It is not unusual to see harvesters and wagons operating well into the night until the dew starts to form. If staff are not available to operate that equipment at the optimum time, it can lead to reduced yields, higher drying costs or even the failure to harvest a crop at all.
In the livestock and dairy sectors, staff are also required to be available to work flexibly. In livestock, this can mean being available for callout to inspect the health of animals, assist in lambing and calving, and recapture escaped animals. In dairy, cows need to be milked at regular intervals from one to three times a day, depending on the system being employed. If that regular schedule is not followed, animal health can be threatened and milk yields suffer.
In the fruit and vegetable growing industry, the fruit and vegetables need to be picked when ripe and when the market demands it. Contracts governing the supply of these goods to retailers and processors can be highly onerous and punitive when conditions are not met. It is essential for this industry that it can employ workers to meet these needs and contract terms.
Unfortunately, agricultural employers need to have staff who are committed to working flexibly, and access to staff who are willing to work when the work is available. The Bill makes it more difficult for employers to refuse employee submissions for flexible working requests. While these submissions can already be made from day one, employers can refuse them on the grounds of inability to fill the gap from reduced hours, or the detrimental impact on business performance or meeting customer demand. The higher bar set by the Bill is likely to make it harder to protect the business.
The Bill applies unfair dismissal rights from day one of employment versus the two years currently in law. We are yet to see the timetable to be proposed, creating significant uncertainty. I have first-hand experience of the damage that a new, unsatisfactory employee can do to a business, even without any malice, and being able to remove them at short notice when the poor performance is revealed is critical. In that case, due to the nature of dairy farming, it took over a year for the poor performance to come to light. The widespread industry reliance on casual workers is threatened by restrictions on zero- and low-hours contracts and the potential for those to obtain a right to guaranteed-hours contracts.
Paying fees for cancellation of shifts at short notice is also impractical in farming. While it is easy to see why the Government might want to penalise employers for potentially capricious and harmful decisions around shifts, the timing of work in farming is often not predictable. Therefore, it does not make sense to penalise farmers even more than they are already for changing weather.
The Bill is a massive threat to the viability of British farming. The extent of that threat will be known only when the Government have decided when employees’ probationary periods will end, when a casual employee gains permanent employment rights, and when notice has to be given of a shift cancellation. I ask the Minister why this work has not been done already and why are we debating a Bill when the extent of its negative impact is unknowable.
The English farming industry has been targeted by this Government, with dramatic reductions in delinked payments, the abrupt cancellation of SFI applications, the imposition of inheritance tax and the withdrawal of the rural services delivery grant being the highlights. We now read in the papers that the spending review is likely to slash the farming budget, offering little hope that government support will improve. Farmers also now face greater competition from heavily subsidised overseas farmers with little or no environmental obligations. On top of that, as my noble friend Lord Deben highlighted, our arable farmers are struggling with low crop prices and extremely dry weather damaging yields.
Let us at least accept this modest amendment to the Bill to allow an open appraisal of the impact on the sector after a full annual cycle, when the terms of the Bill are fixed and in force, and ensure that the information is available to make changes that might prove necessary. This Government have claimed to be pro business and pro growth. Will they, at last, show some support to this business? I hope that the Minister will listen to this debate, depart from his brief and offer encouragement.
I rise with some trepidation to comment on the proposal of an impact assessment for farming businesses, as I am not a farmer and have never lived on a farm. But I say to the noble Lord, Lord Deben, that there are lots of people who support the farmers and the culture, as well as the steadfastness of an industry that is so reliant on the weather. I do not think that any other industry has to try to run a business, make a living and make a small profit with the weather this country has—unfortunately, I cannot blame the weather on the Government, or on any Government. It is literally the force of nature.
In considering the implications of the Bill, it is important that we pay close attention to the needs and circumstances of the UK farming sector. Agricultural businesses operate within a complex and fragile environment, where changes to employment law, however well intentioned, can have disproportionate effects. Recent debates around the family farm tax further highlight concerns about the punitive financial pressures on farmers, underscoring the need for careful assessment of any new burdens placed on this sector. This amendment proposes a structured approach to understand the impact through a formal assessment within a defined timeframe. While views may differ on whether such a provision needs to be set out in primary legislation, the underlying concern is legitimate and should be supported. We should ensure that policy changes do not inadvertently place additional strain on a sector already facing considerable challenges.