Support for Farmers

Debate between Lee Dillon and Stephen Morgan

Wednesday 21st October 2026 Commons Chamber

[Stephen Morgan]

I thank my hon. Friend for that intervention. It was a real pleasure to spend time with him at the Royal Norfolk Show earlier this year, where I heard very clearly the value of our innovation and world-leading technology in this space. I take this opportunity to reflect on the points he made earlier on the importance of working with our international partners and showcasing the best of British around the world, and thank him for that. He will appreciate that I cannot provide details on the ongoing SPS negotiations. The Prime Minister set out that the Government will be completing those negotiations before the next EU-UK summit on 20 November.

A number of Members expressed concern about the impacts of the reforms to agricultural property relief on inheritance tax, which came into force earlier this year. I recognise that when the Government initially announced the reforms in 2024, there was significant concern in the industry about their impact. The Government listened to those concerns carefully, considered the feedback, and the previous Chancellor acted. That is why last year the Government went further to protect more farms and businesses, while maintaining the core principle that the most valuable agricultural and business assets should not receive unlimited relief. This is a fair and balanced approach that protects the family farm while also fixing the public services that we all rely on.

[Mr Dillon]

Can the Minister explain how a farm in my constituency will still have a potential inheritance tax bill of £650,000, yet only generates £18,000 a year of profit?

[Stephen Morgan]

On these matters the Government’s view is now settled. I recognise that the previous Chancellor made the changes as a result of the engagement that she and others had with the farming community up and down the country, but the hon. Gentleman would have been keen to place his views on the record and he has successfully done that.

My hon. Friend the Member for South West Norfolk (Terry Jermy) raised a number of constructive points as a result of his continued engagement with the farmers across his constituency. I understand he has now visited 100 farms in his patch, and I know that he is hosting a very important event in his constituency later this week on the future of farming, and I wish him well with that. My hon. Friend the Member for South Norfolk (Ben Goldsborough) spoke about the importance of profitability and the value of learning from international partners, and I thank him again for his insights. My hon. Friend the Member for Rushcliffe (James Naish) gave a very eloquent speech about the importance of co-designing the future of SFI. I can assure him that directly, and through officials, I and the Department are already working with the sector on exploring options and trade-offs as we consider what SFI ’27 will look like.

To conclude, farmers deserve security, fairness and confidence to invest in the next generation and they have a Government who listen when times are hard and work in partnership with the sector to deliver on the commitments set out in our farming road map. That is our commitment: to back British farming; to maintain domestic food production; and to ensure that those who produce our food have a resilient and profitable future.

Question put.