Meeting of the Parliament 13 November 2024
Scottish Liberal Democrats will support the motion that is before us today, as well as the Scottish Government’s amendment.
The UK Government’s announced changes to the agriculture and business property relief schemes during the autumn budget are a Treasury-driven tax hike with little regard for the affected families or the impact on farming in rural communities. What affects farmers will affect the wider supply chain—vets, agriculture merchants, hauliers, local shops and post offices—in some of the most economically fragile communities in the country. The food and drink sector is a significant contributor to Scotland’s export economy, and it, too, will feel the impact from those changes.
Although farming might be seen as a capital-rich sector, it is also revenue poor, and some farms barely break even. The new rules might force the next generation to sell land in order to retain some of the family farm. The change will certainly have an impact on members of the younger generation who hope to keep the family farm going but are struggling to hold on. The land that is sold might not be dedicated to farming or food production, or to protecting the environment, natural habitats or biodiversity.
We could see smaller plots of that sold-off land bought up by big businesses that have little incentive to be custodians. If we want to be serious about food security and tackling the climate and biodiversity crises, we should support those who are making a tangible difference every day. As the Scottish Government’s amendment presses for, we need to know the assessment of the cumulative impact of the proposals on crofters, farmers and growers in Scotland.
Last week, I met local members of NFU Scotland, who expressed their concerns about the announced changes in the autumn budget on family farms and about the lack of ring-fenced agricultural funds and the obvious impact that that will have on our Scottish agricultural community. With the loss of the ring-fence safety net, which has been part of agriculture funding for decades, there is real concern about how the lump sum from the UK Government will be used by the Scottish Government.
During the passage of the Agriculture and Rural Communities (Scotland) Act 2024, I raised the issue of multi-annual funding and the need for certainty for our crofters, farmers and growers. In Shetland, food production costs are already higher than they are on mainland Scotland as a consequence of our island location and the impact of transport costs through the supply chain, along with a shorter growing season. I have written to the cabinet secretary about that, as it would be useful to understand the Scottish Government’s intentions with regard to multi-annual and ring-fenced funding.
In the meantime, I note today’s press release from Martin Kennedy of NFU Scotland, which says:
“Scottish farmers and crofters are continually being asked to do more and more on a support budget that has only half the buying power it had 10 years ago. The blunt fact is that whatever funding now goes towards Scottish agriculture is 100% within the power of Scottish Government.”
During the general election campaign, the Liberal Democrats demanded an extra £1 billion to support farmers. Family farming has become increasingly difficult due to the impact from Brexit—as we debated last week—the impact of climate change and increased competition. That money would have supported our efforts in food security and in tackling the climate and biodiversity crises, and it would have provided investment in our rural economies and communities.
I recognise the tough economic inheritance of the new UK Government, but that should not be used as an excuse to punch down on farming communities. We need to change course.