Contribution
I remember my right hon. Friend visiting the farm. It was in my constituency at the time, but the boundary changes actually took it away from me. Preventing the theft of machinery from not just farms but all rural businesses, which suffer so badly when equipment theft takes place, is a critical measure that we have to get right.
I take the important point that my right hon. Friend makes around illegal encampments. Any illegal development needs to be clamped down on in whatever form it takes. I pay tribute to Thames Valley police’s rural crime taskforce for some of its work on that. It would be good if the Minister could work with Home Office colleagues to extend that work across the whole country, and push the Minister for Policing, the right hon. Member for Kingston upon Hull North and Cottingham (Dame Diana Johnson), to introduce the statutory instruments that would bring the Equipment Theft (Prevention) Act into full force.
Let us turn to the direction of travel on rural business under this Government, which gives me real concern. First, as others have mentioned, the increase in national insurance contributions and changes to the NICs thresholds place a disproportionate burden on rural employers, many of whom already operate on the tightest of margins. For a rural farm employing five seasonal workers, or a family-run dairy business with a handful of long-serving staff, these extra costs are not abstract; they are the difference between hiring and firing.
The sharp rise in the national living wage is hitting rural sectors, with seasonal and low-margin employment—especially farming, food processing and rural tourism—hit particularly hard. These sectors do not have the luxury of passing on costs to consumers in the same way that some of the big urban retail or tech companies do. They face fixed contracts and price pressures from supermarkets, and this change risks hollowing out jobs that were previously viable.
Compounding that is the change to business property relief, which will strip tax protections from many family-run rural enterprises such as holiday accommodation and equestrian centres, undermining succession planning and deterring future investment in those rural businesses. Labour has targeted the very dynamism that it claims to support.
Labour’s Planning and Infrastructure Bill poses a serious threat to rural enterprise. By relaxing environmental safeguards and expanding compulsory purchase powers—removing hope value protections from prime farmland—the Bill risks allowing developers and central authorities to override local rural businesses and agricultural land. The removal of green belt-like protections from the mythical grey belt areas also paves the way for large-scale development in what were previously safe rural areas. Rural entrepreneurs now face heightened uncertainty over their long-term investments and succession plans. Farmers, holiday let providers and small rural manufacturers alike may wake up to find their economic foundations undermined by top-down planning interventions.
The Employment Rights Bill threatens significant administrative, legal and recruitment costs for rural businesses, which are estimated at up to £5 billion across the economy and are disproportionately heavier for small rural businesses, jeopardising their ability to hire flexibly or offer seasonal work.
But perhaps the most damaging of all is Labour’s recent change to agricultural property relief: the family farm tax. This is not simply a tweak to inheritance policy; it is a direct assault on the ability of farming families to pass on their land and their livelihoods from one generation to the next. An estimated 40,000 farming jobs will be lost under Labour’s plans to force all farmers to stop farming on up to 20% of their land.
The Government’s estimate of 27% of farms being impacted is based on outdated APR claims data from 2021-22 that does not reflect rising land values or the full economic picture of commercial family farms. Nearly 40% of farms rely on a combination of APR and BPR to mitigate inheritance tax liabilities. The £1 million threshold applies to both combined, making it far more restrictive than the Government’s modelling suggests. In my constituency, this is already causing disinvestment. I have spoken with farmers who are now deferring expansion, shelving plans for tourism ventures and, in some cases, considering breaking up long-held estates that have supported jobs and communities for generations.
Farm shops have, after years of successful trading, made the difficult decision to close. On rural high streets, costs have risen 15%. At Rumsey’s Handmade Chocolates in Wendover in my constituency, this is already leading to job losses and reduced hours for the staff they have been able to retain. The Pink and Lily pub in Lacey Green shut in February, just seven years after it first opened.
Rural Britain does not ask for favours, but it does demand fairness. It wants policies that reflect the unique challenges of doing business across distances, in smaller labour markets and with greater exposure to the weather, the global economy and regulatory interference. That is why the Opposition will continue to champion low tax, light-touch regulation and a level playing field for rural enterprise. The future of the rural economy cannot be sustained on sentiment alone; it must be underpinned by policy that understands the realities of rural life. On that test, thus far, Labour is failing.