Sorcha Eastwood

I rise to speak on clause 62 and schedule 12, and my new clause 1. As we have already heard from the Northern Ireland Benches, this is about listening and recognising Northern Ireland’s unique circumstances. I acknowledge from the outset the deep anxiety and distress caused to many farmers across Northern Ireland, including in Lagan Valley, by recent inheritance tax proposals. Farming in Northern Ireland is not just an economic activity; it is a community, a way of life and something that is deeply special and has been rooted in the land across Northern Ireland for generations. As many have said, it is also central to our food security. I cannot for the life of me understand why, at a time of ongoing and increasing geopolitical insecurity, we would take this step. Farmers in Northern Ireland responded with a united, constructive and responsible voice. I pay tribute to the Ulster Farmers Union, the Young Farmers’ Clubs of Ulster and any farmer who took a stand on this important issue. That unity mattered, and it forced movement from the Government. I will not gainsay that or try to nit-pick: I welcome the U-turn. We should never have been in this position, but I do welcome the change. The original £1 million threshold was never fit for purpose for Northern Ireland. Analysis by the Department of Agriculture, Environment and Rural Affairs showed that it could have pulled about 50% of Northern Ireland farms into inheritance tax compared with about 5% of estates generally across the UK. That level of impact was clearly disproportionate. I therefore welcome the increase in the threshold from £1 million to £2.5 million and the decision to make the allowance transferable between spouses. Credit is due to the farming community alone for the united front that secured this long-overdue change. But while many families will feel relief, as other members of the Committee have outlined, real uncertainty remains in particular for older farmers and those who cannot simply plan around sudden policy changes. I place on record my thanks to my colleague Andrew Muir MLA, the Agriculture Minister in Northern Ireland, and his officials. He has been steadfast, evidence-led and relentless in standing up for Northern Ireland’s farmers. That included repeated engagement with the Treasury and a joint letter in November with the First Minister, Deputy First Minister and Finance Minister, which called clearly for a higher threshold and spousal transferability. This is devolution working at its best, no matter what others may say, but it also shows why Westminster must listen when Northern Ireland speaks with one voice. Northern Ireland is different, and one-size-fits-all policy does not work for Northern Ireland. Farms in Northern Ireland are smaller on average, intergenerational and family-run, and often land-rich but cash-poor. Land values, as others have elucidated, continue to rise faster in Northern Ireland. Even with a £5 million transferable threshold, DAERA estimates that the number of impacted farms would fall to about 5%, but those farms account for around 27% of the total area that is farmed. I am clear-eyed about this. Not every farm will be able to avail itself of the £5 million threshold, and poorly calibrated tax policy can force land sales, break succession and undermine the long-term viability of family farms.