Agricultural Property Relief and Business Property Relief Debate

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Department: HM Treasury

Agricultural Property Relief and Business Property Relief

Nusrat Ghani Excerpts
Monday 5th January 2026

(3 days, 20 hours ago)

Commons Chamber
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Dan Tomlinson Portrait Dan Tomlinson
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I thank my hon. Friend for his continued engagement on this and a whole range of issues that affect rural communities in Cornwall—he is a strong advocate for his constituents. As he says, we have now come forward with a change in the APR and BPR thresholds to make sure we can protect those smaller family farms.

Nusrat Ghani Portrait Madam Deputy Speaker (Ms Nusrat Ghani)
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I urge colleagues to keep their questions short, and for the answers to be on point.

Alicia Kearns Portrait Alicia Kearns (Rutland and Stamford) (Con)
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This U-turn comes too late for too many. It is extraordinary to hear Labour MPs saying that their farmers are delighted; mine are sick with relief after 14 months. At the Liaison Committee, the Prime Minister accepted that he knew that some farmers had planned to take their lives or had already done so, yet it still took him well over a week to decide that rural lives matter. What was it that suddenly changed after 14 months for him to decide that our farmers should be stood by, and should not be questioning whether or not they were going to be here for next Christmas?

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Dave Robertson Portrait Dave Robertson (Lichfield) (Lab)
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I welcome the Government’s changes in their plans in relation to inheritance tax on farmers and family businesses. The current system does not work. We need a tax regime that protects genuine family farms but does not let the super-rich dodge tax by buying up land, and many farmers in my constituency have the same concerns about that, but they have also made it very clear to me that the £1 million threshold was too low and would have a significant and detrimental impact on farming in my constituency. Along with many other Labour Members in rural seats, I have made that case to Ministers directly, and I am very pleased that the Govt are raising the threshold to £2.5 million, because that will make a huge difference for farmers in my constituency. I am very interested to hear, though, what steps the Government will be taking—and what steps the Minister can take, with colleagues—to ensure that profitability is at the forefront of our work with farmers, particularly on things like—

Dave Robertson Portrait Dave Robertson
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I will leave it there.

None Portrait Several hon. Members rose—
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Nusrat Ghani Portrait Madam Deputy Speaker
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Order. Here is a new year tip: look at your question, cross most of it out, and then continue.

Anna Sabine Portrait Anna Sabine (Frome and East Somerset) (LD)
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In my constituency, we have not just a lot of farmers but a huge number of other businesses and livelihoods that rely on those farmers, and the whole of that rural economy has been negatively impacted over the last 14 months. Will the Minister undertake not just to apologise to communities like mine, but to ensure that the Government will genuinely start listening to rural communities? At the moment, they do not feel listened to, understood by or even cared for by this Government.

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Harriett Baldwin Portrait Dame Harriett Baldwin
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On a point of order, Madam Deputy Speaker. Earlier the Minister said that agricultural property relief was not available under Margaret Thatcher. In fact, it was Margaret Thatcher’s Government who brought it in under the Inheritance Tax Act 1984, and it was subsequently increased to 100% under John Major. How might I go about getting the Minister to correct the record?

Nusrat Ghani Portrait Madam Deputy Speaker (Ms Nusrat Ghani)
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The hon. Lady, due to her experience, will know that the Chair is not responsible for the content of Members’ contributions, or those of Ministers—if only we were. She has no doubt got her point on the record, and we do not wish to continue the debate.