Lord Harlech (Con)

My Lords, I declare my interests as a member of Historic Houses and the owner of heritage-listed buildings in Wales. As my noble friends Lord Vaizey of Didcot and Lady Fleet have said, the Conservative Government recognised the significance of heritage to our nation’s cultural fabric, its role as a major employer, its educational value and the joy it brings visitors. This understanding was evident in the robust support extended to the sector during the pandemic. In just one Budget, the new Government have enacted in this sector measures of financial savagery not seen since the post-Second World War era of country house destruction. At the Historic Houses AGM, held at the QEII Centre this week, owners and operators spoke of their terror at the ramifications of this Budget. Not a single Minister or civil servant from DCMS chose to attend. At best, this Budget shows a total lack of understanding by the Treasury as to the fine margins and long-term planning with which these organisations survive. At worst, much like in the farming community, it is seen by many as an ideological attack on private ownership which will decimate the sector. The changes to the IHT regime could mean sales of land, buildings, artworks—all diminishing the heritage significance of estates. An increasing number could now be sold in their entirety and new owners may be less inclined to open for visits and events, so a reduction in public access to heritage is another consequence of the Budget. This in turn will reduce the number of jobs and diminish the strength of the UK tourism and heritage sectors. Because an estate will comprise predominantly capital assets, IHT becomes an existential issue for the owners and custodians of heritage businesses. In few other sectors, and I cannot think of another, must businesses relinquish 40% of their net worth at the point of a succession event—that is, death—with all the added stress that can come with a bereavement. Therefore, the long-term sustainability of these businesses depends on their ability to manage the ever-present IHT risk. The Welsh Government’s 2024-25 budget initiated severe cuts to heritage and this Westminster Budget heaps on further damage. Will the Government raise the £1 million cap or limit it to assets held for less than 10 years, or provide that assets held for 10 years after succession qualify for full relief? This will catch those who have bought land to escape IHT by claiming APR or BPR, while permitting long-term custodians of important heritage estates to continue to benefit from full relief.