Yorkshire farming leader says inheritance tax change doesn’t come close to protecting many family farms

NFU West Riding Chair Richard Pears also said the change does nothing to remove the cruel impact of the policy on elderly and vulnerable farmers.

Since changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) were first announced, there has been mounting opposition to this family farm tax.

More than 275,000 members of the public have called on the government to make changes; trade associations representing 160,000 family businesses wrote to the Chancellor calling for reform to the policy; MPs from across the political divide have told the Chancellor about the impact it will have on the rural communities they represent; and independent tax experts have suggested changes to make it more targeted.

During Wednesday’s Budget, the Chancellor announced a small change to the rules which will allow those farmers who are married, or have deceased spouses, to transfer their inheritance tax allowance to one another if one of them dies having not used their allowance.

Mr Pears, who runs an arable farm near Leeds, said: “It is hugely disappointing that the government did not take the opportunity in this Budget to make significant changes to this cruel and damaging family farm tax policy.

“The small change announced does not protect the majority of small and medium-sized family farms across Yorkshire, many of which have fed the nation for generations and now face an uncertain future.

“The inheritance tax proposals continue to stifle investment, have a devastating impact on the entire rural economy and do little to tackle the issue of people just buying land to avoid paying tax.

“The government continues to leave elderly farmers in a hugely difficult position and is putting our national food security under threat.

“I thank the public and the many MPs, councillors and other individuals and organisations who have supported us in challenging this seriously miscalculated and damaging inheritance tax policy.

“I urge you to keep supporting us as the NFU continues to fight for its members and, I’m sure, will announce its next steps in due course.”

The minimal movement on the family farm tax comes alongside a range of other announcements in the Budget that could increase inflationary pressures on our food system.

NFU President Tom Bradshaw said: “Several other announcements in the Budget will hit farming and growing businesses hard. The increase in the National Living Wage, which will have risen 12% in two years, puts further cost pressures on agricultural and horticulture businesses and further inflationary pressures on our food system. At a time when the government has an ambition to get the country eating more fruit and vegetables, it will hit the horticulture sector hardest.

“The increase in the autonomous tariff quota (ATQ) for sugar cane undercuts British growers at a time when this government says promoting growth and investment at home is its priority.

“However, we believe farming may benefit from the announcements on apprenticeships and it could help bring the next generation into our food and farming sector.

“Public support over the past year has been incredible. We will need this support to continue from all sides to create the change needed to protect those people caught up in this unjust, unfair policy. The fight continues; we cannot give up and we will work with the wider industry, supply chain and MPs on next steps.”