John Cooper

I thank my hon. Friend, who speaks to farmers far more than Labour Front-Bench Members ever do. Indeed, he knows that this is about fairness. We Conservatives believe in rewarding those who have done the right thing: those who have strived and who have saved. There is further positive news from our plan, as highlighted by the TaxPayers’ Alliance. In October 2024, the previous Chancellor of the Exchequer announced an increase in the interest rate on the late payment of taxes. The rate had been calculated on the Bank of England base rate plus 2.5%, but the Budget saw an increase in the surcharge to 4% above base, so the interest rate on late payment of tax is currently a usurious 7.75%. Asset-heavy, cash-light taxpayers such as farmers are particularly vulnerable to that change as it takes time to convert assets into a form that allows them to pay that balance. Inheritance tax is due six months after death, after which interest is charged daily on unpaid tax. However, executors may struggle to meet the deadline because properties are illiquid assets that can take considerable time to sell, particularly when probate is required. Selling properties quickly may mean accepting a lower price, while waiting for a better offer can result in additional punitive interest charges. The probate process creates further difficulties as executors often need probate to sell inherited properties, yet generally inheritance tax must be paid before probate is granted.