The Efra Committee’s latest report warns of a breakdown in trust between Defra and the farming community, driven by poor communication, rushed reforms and a lack of engagement with farmers and their representatives.
The NFU has fed into the committee’s thinking throughout this process. While we note the recommendation to delay elements of the agricultural transition, our focus remains on one of the report’s strongest conclusions, that the government’s proposed changes to inheritance tax are not fit for purpose.
Restoration of trust is urgently required
NFU President Tom Bradshaw said: “We fully agree with the committee’s conclusion that ‘a restoration of trust is urgently required’ with Defra. The department is clearly falling short in delivering for Britain’s food security and for British farming in a number of key areas.
“There are issues which are not Defra’s fault, such as the appalling decision on inheritance tax for farms, and there are good things the department has done, particularly in protecting our high production standards in recent trade deals. But all too often there has been a lack of stakeholder engagement and a lack of partnership which has led to bad decisions being sprung on the industry."
“The NFU maintains that this legislation is fundamentally unfit, destructive, badly constructed and must be changed.”
NFU President Tom Bradshaw
Since the Budget announcement, the NFU has been pushing hard against the proposed changes to agricultural property relief, warning that they would disrupt family succession, cause deep uncertainty and place unfair pressure on older farmers.
“We’re grateful to the Chair and his committee for consistently scrutinising the cruel inheritance tax proposals,” Tom added. “We are glad to see that it agrees this policy is unfit to become legislation. We understand why the committee has asked for a delay, but that doesn’t take the terrible pressure off older farmers."
Family farm tax legislation must be changed
Tom Bradshaw continued: “The NFU maintains that this legislation is fundamentally unfit, destructive, badly constructed and must be changed.”
The NFU remains committed to working with the department to restore confidence and ensure policies support a thriving farming sector.
“We continue to have a positive working relationship with Defra,” Tom Bradshaw added, “but, like the Efra Committee, we would welcome improvements in stakeholder management and the communication of policy. I believe the Secretary of State, whom I am sure shares this view, will see this as a positive opportunity for change.”
