Farmers express profound discontent with the UK government’s proposed changes to inheritance tax, describing it as a significant betrayal. The proposed policy aims to raise substantial revenue by 2029 but is met with strong opposition from the farming community. There are concerns about its impact on the longstanding tradition of family farms and the livelihoods of farmers. The National Farmers’ Union (NFU) is actively challenging the government’s data and assumptions. A growing divide over policy details emerges between the government and farmers.
Farmers across the United Kingdom have articulated a deep sense of betrayal over the government’s new inheritance tax proposal. This policy intends to generate £520 million annually by 2029, principally impacting affluent individuals who utilise large estates for tax reduction. However, the farming community argues that this approach jeopardises family-run agricultural enterprises.
Tom Bradshaw, President of the National Farmers’ Union, voiced vehement opposition, labelling the policy as ‘the straw which broke the camel’s back’, at a public assembly attended by 600 NFU members. Bradshaw criticised the lack of consultation with the agricultural sector, highlighting the exacerbating effects of inflation and poor weather conditions on farmers. He stated, ‘You in this room have nothing left to give. It’s wrong on every level and, just as bad, it won’t achieve what the Treasury wants to achieve.’
The government asserts that a majority of farms, about 73%, will remain unaffected by the tax adjustments, urging farmers to rely on historical claims data to support this claim. Despite these assurances, the NFU disputes the government’s figures, emphasizing that the calculations only considered Agricultural Property Relief and overlooked Business Property Relief claims that are crucial for many farmers. This oversight, according to the NFU, reflects a fundamental misunderstanding and misapplication of existing data by the Treasury.
Farmers are particularly concerned about the seven-year gifting rule, which they argue does not equitably apply within the agricultural context. The policy overlooks situations where farmers need to continue drawing a pension or living on the farm post-transfer to sustain their livelihoods. Such conditions could inadvertently subject them to additional tax burdens, challenging the practicality and fairness of the policy’s execution.
Amid rising frustration, the NFU called for a halt to the policy, citing inaccurate evidence as its foundation. The rally’s charged atmosphere echoed a resounding sentiment among farmers: when commitments are made to them, those promises should be honoured. Historically, the presence of promises made by the opposition party, indicating no plans to alter tax regimes, exacerbates grievances among those in the farming sector.
Farmers and the UK government remain at a crucial impasse over inheritance tax policy, highlighting significant tensions in agricultural fiscal management.
