The Treasury’s refusal to rethink its plans for inheritance tax on farms is “pig-headed”, Labour MPs have said after a new report criticised its impact on farmers.
The long-awaited review into farm profitability highlighted significant fears among the farming sector over the future of their businesses due to rising wages, cuts to government subsidies and the impact of the so-called “farmers’ tax”.
Penned by former National Farmers’ Union president Baroness Minette Batters, the report states that concerns around the inheritance tax change was the “single biggest issue regarding farming viability” that the sector faces, despite it lying outside her terms of reference for the review.
“The farming sector is bewildered and frightened of what might lie ahead,” Batters writes, adding that it left them questioning viability let alone profitability.
The report has prompted renewed calls for Chancellor Rachel Reeves to look again at the tax change to farms worth over £1m and comes amid ongoing concern from Labour MPs over the political impact of the tax change.
One Labour backbencher who is opposed to the tax, told The i Paper: “They’re just being pig-headed about it. They’ve just done a Budget where they have given themselves £26bn in headroom and they are choosing to have a fight with an entire industry for five hundred million quid.”
Another senior Labour MP insisted that the fight against the inheritance tax change was not over, with MPs in rural constituencies willing to oppose the plans in the New Year.
“The fight’s not over yet,” the MP added.
Calls for a ‘new deal’ for farming
Earlier this month, more than 30 Labour MPs abstained on a Budget Resolution vote on inheritance tax in the Commons, with one Labour MP, Markus Campbell-Savours, voting against causing him to lose the party whip.
In response to the review, Liberal Democrat environment, food and rural affairs spokesman Tim Farron said: “This devastating review, commissioned by the Government, must be the final nail in the coffin for the hated family farm tax.
“Minette Batters has found that the family farm tax could threaten the viability of British farms.
“Labour MPs must now vote with their conscience and vote to scrap the family farm tax in the new year.”
The Batters review also found that uncertainty over the sustainable farming incentive scheme – which forms the main part of the post-Brexit farming subsidy scheme – was also an ongoing concern.
The review calls for a new deal for farming between Government and industry, with a long-term plan that increases demand for British produce, boosts farming incomes, productivity and resilience, makes supply chains fair, and values nature, wildlife and water quality.
National Farmers’ Union president Tom Bradshaw backed Defra’s priorities for delivering on the review, on supply chain fairness, planning reforms, growing exports, creating a new farming and food partnership board, and tackling barriers to private finance streams.
But he said: “Alongside this, there are other immediate actions that are needed to boost British farming, like providing much-needed clarity and certainty on the future of the sustainable farming incentive and doing the right thing on the pernicious inheritance tax changes.”
Your next read
square POLITICSFilter water with pillowcase: Stark official advice in event of UK-wide power cuts
square POLITICSTrain stations on green belt will be surrounded by new villages under planning reforms
square POLITICSMI6 chief: Tech giants are closer to running the world than politicians
square POLITICS ExplainedFarage wants to strip back the BBC if he wins power – here’s how he would do it
Reeves insisted on Thursday that the changes to inheritance tax were “fair” and that the Government would respond to the Batters Review in the New Year.
Speaking to broadcasters during a visit to a north London community centre, the Chancellor said: “The changes around inheritance tax mean that if you are a couple with far more than £3 million in value, you will pay inheritance tax, but it will be at 20 per cent rather than the usual rate of 40 per cent and it will be repayable over 10 years interest free, which is something that no other estates are able to benefit from.
“I think that is a fair change, because we are asking people with those substantial assets to make a contribution to fund the public services like our NHS that we all rely on.”
Hence then, the article about pigheaded treasury urged to rethink farmers tax after report condemns impact was published today ( ) and is available on inews ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( ‘Pigheaded’ Treasury urged to rethink ‘farmers tax’ after report condemns impact )
Also on site :
- Nuclear neighbors and a two‑front threat: Why India needs a rocket force
- 2010s Rock Band Announces Tour for 10th Anniversary of Debut Album
- Greenland hit by power outage, strong winds in wake of US tensions easing