Monday saw a general debate on rural affairs take place where announcements made in the Autumn Budget on changes to Inheritance Tax were a central feature.
皇家华人briefed MPs ahead of the debate, where we made clear that the changes announced in the budget could increase food costs to consumers adding pressure to many still experiencing the cost-of-living crisis.
What did MPs say?
Newly appointed Shadow Defra Secretary Victoria Atkins said that APR is not a loophole for farmers but is a policy designed to 鈥減revent family farms from being split up and sold off鈥�.
Liberal Democrat spokesperson Tim Farron noted that a large number of farmers live on significantly less than the minimum wage and tenant farmers will be indirectly affected by these changes as landowners repurpose land to pay tax bills.
Chair of the Efra Committee Alistair Carmichael said that the Treasury鈥檚 figures which were used as the basis for changing APR need much more robust scrutiny.
The Treasury has said 73% of APR claims are below 拢1 million and so would be unaffected by this policy. However, Defra鈥檚 figures show that only 34% of farms are under 拢1 million net worth.
The Treasury鈥檚 figures are based on past APR claims and do not consider farms that have also claimed BPR for diversified aspects of their businesses.
Mr Carmichael added that closing a loophole at the expense of family farms is 鈥渦njustifiable鈥�.
Labour MP for Whitehaven and Workington Josh MacAlister called on the government to consider transitional support for those passing down their farms 鈥渨ho may now be caught out by changes announced in the Budget鈥�.
The Conservative MP for Chester South and Eddisbury Aphra Brandreth later tabled an Adjournment Debate on mental health in farming and agricultural communities. She said that 鈥渢he decision on APR has once again brought rural mental health to the forefront鈥�.
鈥楾he feelings of anger, betrayal and despair are palpable鈥�
NFU President Tom Bradshaw said: 鈥淪ince the Budget, I鈥檝e heard about distressed elderly parents who are having to apologise to their children in tears for something that isn鈥檛 their fault, telling them they鈥檙e sorry because they feel they鈥檙e now a burden on the family.
鈥淚鈥檝e heard from families who can鈥檛 see any way they can plan for a future which doesn鈥檛 result in losing their business. Men and women who鈥檝e spent years building up farm businesses now wondering what鈥檚 the point in carrying on when it鈥檚 going to be ripped apart.
鈥淭he feelings of anger, betrayal and despair are palpable. There is already a mental health crisis in the farming community. In 2021, a showed that over a third of the farming community had experienced depression and around half had experienced anxiety. And now this family farm tax is exacerbating this crisis.
鈥�We have been speaking to MPs ahead of the debates in Parliament to ensure the impact on family farms is front and centre of discussions.鈥�
NFU President Tom Bradshaw
鈥淭he vast majority of the people who鈥檒l bear the brunt of this family farm tax aren鈥檛 wealthy people with huge cash reserves hidden away. They are families that have often spent generations building up their farm businesses to provide food for the nation, often on very tight profit margins.
鈥淭heir businesses have struggled through all the changes caused by Brexit, they鈥檝e suffered years of being squeezed to the lowest margins imaginable with costs of production skyrocketing, and they鈥檝e been battered by increasingly extreme weather conditions.
鈥淭hey have nothing left to give.鈥�
Show your support
Tom added: 鈥淲e have been speaking to MPs ahead of the debates in Parliament to ensure the impact on family farms is front and centre of discussions. With our mass lobby of MPs only a week away, we will be continuing these conversations to ensure the pressure to reverse the family farm tax is not only coming from farmers, the public and the media, but backbenchers and Ministers too.鈥�
On 19 November, farmer and grower members of the NFU will meet with their MPs in Parliament, urging them to ask the Chancellor to reconsider changes to Inheritance Tax. Find out more about the mass lobby.
You can show your support and join our call for the government to overturn the family farm tax by adding your name to our online campaign.
