Farmers' fears that agricultural land could be sold off through planning reforms

Agricultural groups have expressed fears that the Government’s planning reforms could risk farming land being sold off to make way for housing developments.

The Planning and Infrastructure Bill was laid in Parliament yesterday, which Deputy Prime Minister Angela Rayner said “will unleash seismic reforms to help builders get shovels in the ground quicker to build more homes”.

This will include streamlining the planning process, changing the way developers meet environmental obligations, and giving communities near new electricity pylons money off their energy bills.

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The Government will also make changes to compulsory purchase orders, devolving powers to councils and mayors and ensuring compensation paid to landowners is “not excessive”.

However, groups such as the Country Land and Business Association and the National Farmers' Union are concerned this could encroach onto farm land.

CLA deputy president Gavin Lane said: "We urgently need more affordable housing, but pushing landowners into selling land isn’t the answer.

“Compulsory purchase drags landowners through years of stress, disruption and compensation battles, harming individuals and communities alike.

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Labour deputy leader Angela Rayner during a visit to a housing development. PIC: Joe Giddens/PA WireLabour deputy leader Angela Rayner during a visit to a housing development. PIC: Joe Giddens/PA Wire
Labour deputy leader Angela Rayner during a visit to a housing development. PIC: Joe Giddens/PA Wire

“Farmers face growing pressure to sell land because of inheritance tax reforms. If a farmer dies, up to 40% of the land’s value could be lost to inheritance tax, threatening the family’s legacy and making it harder for the next generation to continue the farm.

“Instead of pushing landowners to bear the burden, why not work with them? Most want to see progress and could deliver development faster, cheaper and with more care. Hitting landowners isn’t the solution – fixing the planning system is.”

An NFU spokesperson said: "UK food security has rarely been more vital, and productive farmland needs securing for our collective future more than ever.

“We appreciate there are huge demands being made on land for more housing and for critical national infrastructure.

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“But this must not happen at the expense of losing agricultural land at a time when UK food security is so fragile."

Farmers protest in Whitehall, London, over the changes to inheritance tax (IHT) rules. PIC: James Manning/PA WireFarmers protest in Whitehall, London, over the changes to inheritance tax (IHT) rules. PIC: James Manning/PA Wire
Farmers protest in Whitehall, London, over the changes to inheritance tax (IHT) rules. PIC: James Manning/PA Wire

Shadow Environment Minister Robbie Moore, the Keighley and Ilkley MP, said: “The mask has slipped. Labour’s land grab and attack on our farming community continues.

“Why on earth should anybody who owns property be forced to sell it at a lower value than it is worth.

“Not only is this vindictive Labour government forcing our farmers to sell their land through their family farm tax, they are now legislating to force our farmers to sell fields for less than their potential value if they are seized for government or local council development.”

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Housing Minister Matthew Pennycook told LBC he “can’t rule out” farmers being affected, explaining: “If a particular local council in a part of the country thinks there's a particular piece of land that is appropriate for them to bring forward and to use compulsory purchase powers on, they will have the ability to do so.”

But Mr Pennycook added: “We are obviously and very clearly not setting out to target agricultural land.

“The land use framework we're consulting on currently will ensure that prime agricultural land is protected and food security is protected.

“I see this power being used … in urban areas on previously developed brownfield land, where regeneration projects with a significant public interest, can be unlocked more easily.”

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These measures received support from council groups, including the Local Government Association and the County Councils Network, which includes North Yorkshire and the East Riding.

Coun Richard Clewer, CCN’s housing spokesperson, said: “Councils share the government’s ambition to build more homes of all tenures, providing they are in suitable locations and making it easier for councils to compulsory purchase land for affordable housing will be a useful tool.

“However, we are concerned about efforts to dilute and bypass the role of councillors on planning committees, particularly in rural areas where significant developments could only constitute a few dozen homes.”

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