‘Disastrous’ farm inheritance tax changes makes thriving sector impossible – NFU
The union’s boss called for a pause for consultation on the policy to enable the sector to deliver food security and environmental goals.
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Your support makes all the difference.A farming leader has urged the Government to pause its “disastrous” reforms to agricultural inheritance tax in order to deliver on food security and growth.
National Farmers’ Union president Tom Bradshaw said he had never before seen the “anger, despair and sense of betrayal” prompted by ending the 100% exemption from inheritance tax on qualifying business and agricultural assets worth more than £1 million.
In his new year message, Mr Bradshaw said Labour’s first budget, which brought in the proposed changes, had capped a “wretched year” for farming, which had suffered volatile costs, one of the wettest periods in decades and a reduction in subsidies.
He described the inheritance tax changes as an “indefensible family farm tax”, although the Government has repeatedly defended the move, saying the vast majority of farmers will not have to pay it.
We will build on the momentum of the public’s unwavering support and strive to ensure we are doing everything we can to help deliver a thriving and profitable farming industry
Mr Bradshaw said that before the election, there were a number of policies in Labour’s manifesto that “provided optimism”, and called for them to be delivered at pace.
He called for measures to ensure the new environmental payments regime for landowners works for food production alongside nature, and supports businesses in the uplands in particular, and also urged robust standards for food imports.
He also called for legislation to boost promised public procurement of British food, and a planning system that supports farmers.
“These are the building blocks needed to secure UK food security and provide Britain’s farmers and growers the confidence they desperately need to invest for the future and deliver on our joint ambitions to produce more sustainable, affordable, homegrown food while creating more jobs and delivering for nature, supporting greener energy security and climate-friendly farming,” he said.
He also said there had been successes for British farming, including fairer supply chains in the dairy sector and eight of the UK’s major retailers backing the NFU’s long-standing call for “buy British” tabs to be added to their websites.
He added that the NFU would be pushing for fairness in the supply chain in 2025.
“Our ambitions are clear, and the manifesto commitment from this Government that national security is food security gave us hope to deliver the thriving industry that farmers and growers want to be a part of,” he said.
“Clearly, the shadow hanging over the industry from the disastrous proposed reforms to inheritance tax makes delivering these ambitions impossible.
“To move forwards, we need the Government to urgently recognise the need to pause and consult so we can focus on delivering the far more exciting agenda above.
“As we head into the new year, we will build on the momentum of the public’s unwavering support and strive to ensure we are doing everything we can to help deliver a thriving and profitable farming industry – one that is good for shoppers, good for the environment and good for a secure supply of British food.”
A Government spokesperson said: “Our commitment to farmers remains steadfast and our Plan for Change will protect food security and grow the rural economy.
“We have committed £5 billion to the farming budget over two years, the largest ever for sustainable food production and nature’s recovery, and we are developing a 25-year farming roadmap to ensure greater profitability for rural businesses in the years to come.
“Our reform to agricultural and business property relief will impact around 500 estates a year.
“For these estates, inheritance tax will be at half the rate paid by others, with 10 years to pay the liability back interest free.
“This is a fair and balanced approach which will help fix the public services we all rely on.”