Exchequer Secretary to the Treasury Dan Tomlinson and Chancellor Rachel Reeves heard questions from seven MPs who all highlighted serious concerns surrounding the changes to APR and BPR (agricultural property relief and business property relief).
Ahead of the session, the NFU briefed MPs on the disastrous impact of the family farm tax and reiterated our calls for the Treasury to look at CenTax’s (Centre for the Analysis of Taxation) proposal of a minimum share rule, which aims to separate farmers from those who invest part of their portfolio in farmland.
This would raise 71% more money than the government’s current proposal and, above all, protect vulnerable farmers.
“The mental health toll on farmers is becoming completely unsustainable.”
Liberal Democrat MP for North Cornwall Ben Maguire
The NFU has facilitated hundreds of meetings over the past year to discuss inheritance tax, both on farm and in Westminster.
Labour MPs press Treasury on inheritance tax
During the session, Labour MPs questioned ministers about the government’s analysis of CenTax's proposal.
David Smith, Labour MP for North Northumberland argued that “those with the broadest shoulders should bear the greatest burden”, not cash-poor family farms. He said CenTax’s minimum share rule proposal would reduce the risk of farms being broken up as it would protect those valued under £5 million with at least 60% agricultural assets. Watch David's question in full.
The Labour MP for Ribble Valley, Maya Ellis, made the case to Dan Tomlinson that the Labour Party should be “supporting hardworking farmers who are the backbone of this country over millionaire homeowners who have money in their wider estates to pay the inheritance tax”.
Focusing on the government’s key priority of economic growth, Labour MP for South West Norfolk Terry Jermy explained that a farm is often “the very core of a rural economy” and asked whether the government had assessed the impact of the changes to agricultural property relief on “growth opportunities in rural areas and the viability of rural communities”.
Opposition support
Shadow Exchequer Secretary James Wild, who is also the Conservative MP for North West Norfolk, called on the Chancellor to engage with those impacted by her policies, asking if she had met with farmers or the NFU.
The Liberal Democrats were again united in their opposition to the policy, with MPs continuing to raise the devastating emotional consequences of inheritance tax changes on the farming community.
Ben Maguire, Liberal Democrat MP for North Cornwall, described how “the mental health toll on farmers is becoming completely unsustainable”. He called upon the Chancellor to “rethink this damaging policy” and instead adopt CenTax's proposal, pointing out that this would not only offer better protections to farmers but also raise more revenue for the public finances.
The Liberal Democrat MP for Glastonbury and Somerton, Sarah Dyke, urged the government to end “months of confusion and misery” caused by the family farm tax and to meet with farmers in her constituency.
Liberal Democrat Treasury Spokesperson Daisy Cooper talked about meeting “desperate” farmers and their families on her recent farm visit with NFU members in Brecon and Radnor. She underscored the “impossible position” of older farmers left with no time to plan.
During her meeting, farmers had asked Ms Cooper to raise a question during the session. She asked the Chancellor to say precisely what she disagreed with in the CenTax report and why.
The Treasury position
Responding for the government, Exchequer Secretary Dan Tomlinson thanked MPs for their questions but maintained that “the policy position that was set out at last year’s Budget is the right one”.
The Minister argued that more estates would pay inheritance tax under the CenTax proposal, despite Labour MPs pointing out that estates with under 60% agricultural assets were far less likely to be working farms.
The full session is available to watch back on: Parliament.tv.
What next?
Ahead of the Budget the NFU will continue to lobby MPs and encourage NFU members to write to their MP about how the changes to APR and BPR will impact their farming businesses.
