OUR family farms could be in danger of disappearing as they face a perfect storm of reduced farm payments, additional National Insurance costs, and from April 2026, inherited farming assets worth more than £1 million will be subject to a 20 per cent tax.
This Inheritance Tax change will make it significantly more difficult for farmers to pass on their farms to the next generation. Our tenant farmers will also be badly affected as landlords review the options for their land.
It comes at a time when farmers are already facing pressure from all sides – high input costs and increased cost of doing business, to climate change.
However, the Environment Secretary Steve Reed has rejected claims that many in the sector will be affected by plans to limit 100 per cent property relief to the first £1 million of agricultural assets.
Ministers say the vast majority of farms will not be hit by the changes, but many in the sector have said they will be forced to sell off land to meet the costs.
The Cabinet minister insisted that only a few hundred farms would be impacted, rather than the tens of thousands claimed by critics.
However, the remarks angered some farmers who have been taking part in large-scale demonstrations across Westminster to urge the Government to reverse the policy announced in the October Budget.
The Cumberland News spoke to Cumbrian farmer and interim chairman of Red Tractor Assurance, Alistair Mackintosh, who joined the National Farmers’ Union lobby of MPs at Westminster on Tuesday.
On his return from the capital, Alistair said: “The Labour Party are not going to bin these changes to inheritance tax rules. The most we can hope for is to have some dialogue and concessions. But it is not only the inheritance tax we have to worry about.
"Farm payments will cease altogether, and what is in place currently is not fit for purpose; there is a significant lift to the National Insurance payments and an import/carbon tax on fertilisers.
"This will all combine to cripple the industry. There are a lot of angry farmers out there, and it all goes back to Brexit. The public need to know that the Government figures and the NFU figures on the numbers of farms affected by the inheritance tax are miles apart. MPs could not have avoided getting the message. We won’t give up our fight.”
Another farmer who joined the lobby, was Cumbrian dairy farmer and chair of The Royal Association of British Dairy Farmers (RABDF), Robert Craig, who said around 1,800 NFU members met with their MPs face-to-face, alongside a further 10,000 who joined a wider protest.
A group from the Carlisle area met with their MP Julie Minns, and another group met with MP for Penrith and Solway, Markus Campbell-Savours.
Robert told us: “Both MPs were very receptive and seemed to understand the concerns of the farmers. Both Markus and Julie have asked for more information and details of real actual case studies showing how the proposed changes in inheritance tax will impact on family farming business.
"It’s really important we keep the pressure up and continue to engage with our MPs. Please write to your MP explaining the concerns you have and how important it is that the government amends these crazy tax changes.
"Even if you’ve already written its worth following up with more details of how you believe it may impact you.
"Arrange a meeting with your accountant and get good data to share with the MPs. We do have some time as these changes won’t be voted on until the new year but it’s essential we keep engaging.”
The Cumberland News is standing shoulder to shoulder with Cumbria's farmers as we call on the Government to rethink its crippling farm tax plan but we need your help! Find out more about our campaign here.
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