To ask the Minister of Agriculture, Environment and Rural Affairs for his assessment of the need for the Executive to ring-fence funding for agriculture, agri-environment, fisheries and rural development.

Mr Muir

With your permission, Mr Speaker, I would like to answer questions 6, 10 and 12 together. I recognise that the changes announced in the Budget regarding agricultural property relief and business property relief in relation to inheritance tax have generated real concern and anger in the local farming community and further afield. I expressed those concerns when I met the Secretary of State on 4 November and urged him to reconsider the policies. I have also raised the issue with the DEFRA Minister of State, Daniel Zeichner, and will continue to do so in meetings with other UK Government Ministers. I have encouraged the UK Government to engage further with the farming community so that they have a better understanding of the concerns being raised and to look again at the issue. I will meet the Ulster Farmers’ Union (UFU) tomorrow to consider next steps. Analysis carried out by my Department and placed in the Assembly Library shows that around one third of farms in Northern Ireland have a land value of more than £1 million. However, those farms account for 60% of owned land and the majority of agricultural production. A large proportion of farms of significant size will be affected, including 75% of those in the dairy sector. Looking solely at the number of farms does not measure the impact on the sector. Another issue arising from the Budget is the change to ring-fenced funding. Although existing funding for agriculture, the agrienvironment, fisheries and rural development will continue to be earmarked by Treasury until 31 March next year, it is important to provide certainty on the funding after that. While it is positive that funding levels have been maintained at £332·5 million, it is disappointing that they have not been increased in line with inflation. I have therefore formally asked the Finance Minister that the resource DEL that has been baselined in the block grant be treated as Executive-earmarked funding for agriculture, the agrienvironment, fisheries and rural development purposes and uplifted it in line with inflation, as part of the Executive’s Budget exercise for the next financial year.

Mr Buckley

The Chancellor says that Labour's tax raid on family farms will bring in £520 million a year. We are told that that is needed to overturn some of the deep, dark holes in our public finances, yet, not even a month later, the same Labour Government have committed £536 million to be spent overseas on 10 programmes to promote low-carbon agriculture projects, including in Rwanda and in the eleventh largest economy in the world, Brazil. Minister, do you agree with that wasteful spend of public money — yes or no — or do you believe that the money should be spent on family farms in the United Kingdom to ensure that they have a viable future?

Mr Muir

I have clearly outlined my position on the issue and on the fact that I am fighting the corner of agriculture in Northern Ireland on the issue of the Budget and the budgetary settlement arising from that. It is key that we come together on inheritance tax and on funding for agriculture, the agrienvironment, fisheries and rural development. We need to be unified in our approach in order to get the funds ring-fenced in Northern Ireland. We must be clear in our message to the UK Government that they should overturn their decision on inheritance tax. That is absolutely key. When we were in the European Union, our funding under the common agricultural policy and the common fisheries policy was guaranteed to us in seven-year tranches. Then we left the EU. That funding is earmarked until the end of March next year.

Mr Buckley

Answer the question, Minister.

Mr Muir

I am answering —.

Mr Speaker

Order.

Mr Muir

The uncertainty about earmarked funding from the next financial year onwards is largely due to the departure from the European Union. People would do well to remember that.

Mr McCrossan

Given the widespread concerns about the introduction of the inheritance tax measure, what steps will the Minister take to mitigate its impact on family farms across Northern Ireland?

Mr Muir

Inheritance tax is a reserved matter, because the UK Government take forward taxation policy. I received a letter back from Treasury today that says that they are clearly of the opinion that they are not for turning on the matter, but I will continue to engage with them and urge them to rethink it. I am mindful of the fact that, if the tax change proceeds, we will need to have a much bigger focus on succession planning for farming in Northern Ireland. The Department is bringing forward the Farming for the Generations scheme, which is a pilot initiative. More details about it are available on our website. Over the time ahead, we will need to scale that scheme up so that we can assist farmers with succession planning. It is absolutely key that we do so.

Mr Muir

I have written to the Finance Minister. I have also discussed the issue with Executive colleagues. I had planned to meet the Finance Minister later this afternoon, but, due to Assembly business, the timing of the meeting has moved. It will not be possible to have that meeting today, but I will seek to reschedule it and make clear my continued call for the funds to be earmarked in Northern Ireland so that we can give certainty not just to the farming community but to our fishing communities across Northern Ireland and provide support for agrienvironment and rural development. I am keen to ensure that we get clarity on that as soon as possible. One of the key issues is that we in the Executive agree a draft Budget for the next financial year as soon as possible.

Mr McAleer

The Minister will be aware that, in England last year, over 50% of land sales were by private equity companies and that the super-wealthy have no interest in farming. Is the Minister aware of any steps being taken to prevent that and ensure that farmland remains in food production and accessible to farm families?

Mr Muir

The Member highlights one of the reasons for the Treasury's decision to make the change. I believe that it will be in the Treasury's gift to tackle that issue without it having the disproportionate impact that it is having in Northern Ireland. Northern Ireland is a patchwork quilt of family farms. They are the bedrock of our rural community. The inheritance tax change is causing real concern to those family farms. I will engage with the Ulster Farmers' Union tomorrow about constructive suggestions that we can make to the UK Government on how to alleviate those concerns and avoid the damage that the change could cause in Northern Ireland.