THE Government’s recent Autumn Budget has sparked significant concern for many people across the UK but one sector that has been especially negatively impacted is our farming community.
Farmers are particularly concerned by changes to Inheritance Tax reliefs which mean that many farms passed down from generation to generation will fall due to high tax charges and may have to be broken up.
Agricultural Property Relief (APR) and Business Property Relief (BPR), which will now cap APR and BPR at £1 million.
This means that farms valued above this threshold will only benefit from a 50 per cent relief, effectively imposing an additional 20 per cent tax on inherited assets over £1 million.
A million may sound like a large amount but farms are typically asset rich and many generate only very modest incomes with which to pay these taxes.
I have written previously about my concerns regarding the wider implications of the Budget, but the proposed changes to APR and BPR are of particular significance, and not only threaten family farms but also to the broader food security of the nation.
NFU President, Tom Bradshaw, has stressed that this policy makes food production more expensive at a time when farmers simply cannot absorb extra costs. These costs will trickle down and ultimately be borne by consumers.
During the General Election Labour promised they would not impose new taxes on working people.
The Family Farm Tax is not only a tax on farmers, who are by definition working people, but also a tax on everyday consumers who will see food prices increase as a result of this policy.
The situation is exacerbated by already rising costs of production due to inflation, extreme weather events, and ongoing supply chain disruptions.
Moreover, the Treasury claims that only around 500 farms annually will be affected by these changes; however, rural experts argue that this figure is misleading.
They suggest that the cap will impact a much larger number of farms, potentially affecting up to 70,000 UK farms when considering the overall asset base necessary for viable agricultural operations. This policy raises serious concerns about the Government’s understanding of the farming sector, and business in general.
The strength of feeling about this policy is clear. Last week, farmers across the country travelled to Westminster rally against Labour’s Family Farm Tax. The Police say attendance was in excess of 10,000.
I participated in events throughout the day alongside Conservative colleagues, and hosted farmers from my own constituency in Parliament for a meeting about the changes.
It was so important to hear first-hand accounts from local farmers who will be impacted, and I will be reflecting this information back to the Government in my fight against this cruel tax.
I intend to meet with farmers in my constituency again soon. For now, if you would like to join the fight against the Family Farm Tax and support us in our mission to get the Government to reconsider this cruel tax, sign our petition at: stopthefarmtax.com .