Family Farm Tax


We are a year on from the dreadful decision by Rachel Reeves to remove Agricultural Property Relief and Business Property Relief.

This tax is in effect a tax on family farms. I have been deeply concerned about the impact this tax will have on the farming community, particularly family and small farming businesses, which have suffered one shock after another - from the impact of Russia’s invasion on energy and feed prices, to the Conservatives’ botched trade deals.

My grandparents were dairy farmers so I understand first hand the struggles farmers already have to turn a profit, let alone plan succession for an asset that’s capital is so much greater than it’s potential revenue.

The Labour government has made the same mistakes as the Conservatives who neglected British farmers. We cannot lose sight of what is at stake; our food security, our natural environment, the rural economy and the heritage of agricultural communities.

Having seen the excellent work of the Select Committee for Environment, Farming and Rural Affairs, who have been very critical of the Government, I remain deeply concerned that the Government isn’t listening. The committee has said a pause in the implementation of the reforms “would allow for better formulation of tax policy and provide the Government with an opportunity to convey a positive long-term vision for farming.” The Government needs to listen.

Liberal Democrat Environment, Food, and Rural Affairs spokesperson Tim Farron MP tabled an Early Day Motion, which I am pleased to have sponsored. The motion calls for a reversal of the tax and the farming budget to be increased by £1 billion. We must also remember that Labour’s changes to inheritance tax are not the only change that has harmed farmers. They also tapered the basic payment scheme which suddenly cut off farmers from a vital funding pot without warning.

Chair of Commons Select Committee for Environment, Food and Rural Affairs Committee, Liberal Democrat MP Alistair Carmichael MP led a debate about farming which many other Liberal Democrat MPs also contributed; Charlotte Cane MP, Danny Chambers MP, Charlie Maynard MP, Jamie Stone MP and Tessa Munt MP. You can read the whole debate here.

I have met with local farmers both in Westminster, when they have been up for their protests, and locally in my constituency. They have expressed their concerns and real anger over how they have been treated by the government. I consistently hear the sentiment from them that Labour does not understand farming and our rural communities. Judging by their actions it is hard not to agree. I was recently asked about farming when I was on BBC Politics Live, if you would like to watch me explain my stance you can see that here.

I also asked the government about local abattoirs and the difficulties this has created for stock farmers. I signed a letter from my colleague Sarah Dyke MP to the Minister for Food Security and Rural Affairs about the recent drop in the milk price received by dairy farmers, this may sound good but our dairy farmers are already struggling enough with high costs, a volatile market, and uncertainty around future support. They need to be paid their fair share and not be further squeezed by the dairies and supermarkets. I have also signed an Early Day Motion which calls on the government to create a single regulator for the supply chain and apply the Principle of Fair Dealing so farmers are not exploited by supermarkets.

 

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