Farmers in the UK are voicing strong opposition to recent government changes in inheritance tax, labeling it as a betrayal that threatens family-run farms.
- Tom Bradshaw, NFU President, received applause for criticizing the policy as destructive and hasty, lacking consultation with the farming community.
- The government aims to raise £520 million annually by 2029, targeting wealthy estate investors, but farmers warn this could backfire.
- There is significant disagreement on the data, with the NFU challenging the government’s figures and highlighting the combined use of APR and BPR in agriculture.
- Farmers emphasize the emotional and financial toll, as many face losing their livelihoods and warn the policy contradicts past promises of stability.
In a bold statement at Church House, NFU President Tom Bradshaw denounced the government’s inheritance tax changes as a critical turning point, highlighting the lack of consultation with the agricultural community. “To launch a policy this destructive without talking to anyone in farming beggars belief,” said Bradshaw, addressing 600 NFU members. The atmosphere was charged as he received a standing ovation for condemning the policy as “the straw which broke the camel’s back.”
The government’s strategy to generate £520 million annually by 2029 through inheritance tax adjustments specifically targets affluent individuals leveraging large estate investments to cut tax obligations. However, Bradshaw pointed out the potential unintended consequences, with people possibly diverting funds from pensions to purchase valuable farmlands, thus undermining the policy’s original goals.
Central to the dispute is the validity of the data used by the government to predict the policy’s impact. While officials claim 73% of farms will remain unaffected, farming leaders dispute this, referencing the reliance on outdated data that ignores the significance of Business Property Relief (BPR). Bradshaw asserted that “HMT has completely misunderstood its own data and ignored claims made by farmers under the BPR regime.”
The emotional and human cost of the tax changes was a poignant aspect of Bradshaw’s address. He articulated the real-world implications for elderly farmers, who risk seeing their lifetime’s labor displaced. The seven-year gifting rule, which exempts gifts from inheritance tax if the donor lives seven years post-transfer, doesn’t align well with farming realities where lifelong residents must pay rent post-transfer to avoid tax penalties.
The protest in Westminster saw a united front from the agricultural community, with clear messages that the policy was fundamentally flawed. Participants highlighted a perceived betrayal, particularly in light of past assurances from political figures like Sir Keir Starmer, who vowed to maintain consistency in farmers’ economic conditions.
The farming community remains resolute in its demand for policy reevaluation, with tensions high over the perceived governmental oversight and miscalculation.
