Contribution
The right hon. Gentleman is absolutely right. It has to be properly understood that farming underpins everything in rural communities. To take the example of agricultural merchants and machinery dealers, these are successful businesspeople. They will be people who are part of the local Rotary club. They will have children in schools. They will be people who take on all sorts of leadership responsibilities within the community. If they cannot make their living in the countryside, we should not expect them just to sit around and wait for something to come along. Of course they will leave and the population will decrease, and we will be in a vicious downward cycle, which is the very opposite of what we need. It is also the very opposite of what a good, well-resourced and valued farming industry can provide for the country as a whole. If we are serious about the mission for growth, as the Government tell us, it has to be growth for everyone. It has to be growth across every sector and every part of the country, including rural areas and farming.
That allows me to come back to the point that I was about to make about the NFU’s confidence survey, which was published just this week. I am afraid it makes grim reading for anybody who cares about the countryside and agriculture. It tells us that 85% of landowners believe that the reforms to APR and BPR will increase their inheritance tax liability. Of those, 32% say they plan to reduce investment to mitigate the increase. The figure increases to 42% for mixed arable and livestock businesses, and to 49% for arable farms. Some 75% of employers expect to be impacted by the increase in employer national insurance contributions, 65% say they expect a reduction in profits because of the increase, and 43% expect to reduce investment to offset the additional costs. Again, that is on top of this week’s changes to the SFI and the basic payment scheme.
I would like to say quite a lot more about other aspects of the Budget, particularly the removal of the ringfence for devolved budgets, but I am reluctant to do so, given the pressure on our time this afternoon and the number of people who want to contribute to the debate. However, I have spoken about those issues before, so those who are interested in my views can refer to my previous contributions.
A small silver lining is to be found in the debate on APR and BPR, because it has forced us to think about the extent to which farming produces such a spectacularly poor return on capital. This is something we have all known for years, but now we have been forced to ask ourselves why it is the case. The hard fact of the matter is that 80 years of Government interference in the food market through agricultural subsidies has had the unintended consequence of keeping farmers poor and making supermarkets rich. I have a ten-minute rule motion next week to encourage the Government to introduce meaningful regulation in the food supply chain, and the Minister and his colleagues have recently spoken about their intention to see farm incomes increase. That is to be welcomed, but it will need a much more comprehensive and coherent strategy than we have seen thus far.
Not all confidence is about finances. We have seen a lot of doubt thrown into every sector of agricultural production in recent months because of the biosecurity threats that face this country. The poultry sector has been hit hard as a consequence of avian influenza. We have seen foot and mouth outbreaks on the continent. We see African swine fever moving across the continent, and it seems likely that we will see bluetongue disease back in this country soon. The vets on the frontline—those in the Animal and Plant Health Agency—do a remarkable job, and we owe them all a debt of gratitude, but so much more needs to be done.
The Environment, Food and Rural Affairs Committee has heard evidence on this issue from port health authorities, local authorities and the APHA itself. We have asked the Department about the point at which Government software systems were updated to stop animal products coming from Germany, following the identification of a foot and mouth outbreak there. Despite getting answers to our letters, we have still not been told by the Department whether IPAFFS—the import of products, animals, food and feed system—was updated on 10 or 16 January. That is something that the Government should be able to tell us.
I have sympathy for the Government, because they are dealing with a brand new system. Essentially, we should be able to see this as a pressure test on it. If the system did not work perfectly everywhere, let us identify those parts where the pressure escaped. But in order to do that, we need more transparency and more candour from Government Departments. If the Minister can answer that question when he responds to the debate, I will be enormously grateful. If he cannot, it would assist the Environment, Food and Rural Affairs Committee greatly if we were able to get that answer in correspondence.
Time really is against us this afternoon. I would have loved to have the rest of the afternoon, but we do not. I will conclude my remarks, but let me say on behalf of the Environment, Food and Rural Affairs Committee that I very much hope that Members from across the House will continue to engage with our inquiry, because if food security is national security, as the Prime Minister keeps telling us, then our Committee is one of the most important Committees in this House.