HC Deb 13 June 1974 vol 874 cc1808-10
10. Mr. Hurd

asked the Chancellor of the Exchequer what recent representations he has received about the likely effect on agricultural production of the proposed wealth tax.

21. Mr. Loveridge

asked the Chancellor of the Exchequer if, in introducing the proposed wealth tax, he will seek to ensure reliefs that will prevent the piecemeal sale of the assets of any business due to the accumulative effects of this tax when added to other taxation.

Mr. Joel Barnett

I have received some representations on behalf of farmers. But the effects of the wealth tax on agriculture or on businesses are matters for later public discussion in the light of the Green Paper which my right hon. Friend will publish during the summer.

Mr. Hurd

Will the hon. Gentleman accept that farmers who have expressed anxiety about this matter are not enjoying a lush standard of living but by and large are people who have seen the main tool of their trade—the land—rise sharply in value? Can he, in advance of the Green Paper, do something to restore confidence in the farming industry by giving an undertaking that he will not bring in any measure which would lead to the breaking-up of farms or do anything to upset a highly efficient farming industry?

Mr. Barnett

I do not accept the assumption in the hon. Gentleman's question. The subject of farmers will be discussed when the Green Paper is published. It is known that there are many farmers and landowners who have been known to acquire substantial amounts of wealth, and they should pay their fair share in wealth tax.

Mr. George Lawson

When considering the treatment given to farmers, will my hon. Friend bear in mind the great advantages which they enjoy in rate relief and which are not enjoyed by other people?

Mr. Barnett

I am grateful to my hon. Friend for that comment, and I remind him that there are other reliefs as well. It is important to remember that there are some career farmers whom it might be necessary to help, and this matter will be discussed when the Green Paper is published.

Mr. Awry

Is the hon. Gentleman aware that practically all the farmers in my constituency have all their money invested in their business? Does not the hon. Gentleman appreciate that if there is to be a further tax imposed upon them, they will have to sell part of their business to pay the tax? This would have a disastrous effect on agriculture in my constituency.

Mr. Barnett

I doubt whether that is true of every farmer, although it may be the case in the hon. Gentleman's constituency. It will be a matter for discussion when the Green Paper is published.