🥀 The Labour party has rolled out a family farm tax without fully considering the profound consequences this harsh action will have.
⛔️ This affects not only farmers but also impacts rural communities extensively and jeopardizes food security across the nation.
Check out my article in the Express 👇https://t.co/cLqggTV99i
— Steve Barclay (@SteveBarclay) October 31, 2024
The Chancellor of the Exchequer, Rachel Reeves, has justified her choice to eliminate the inheritance tax exemption for agricultural estates. In a conversation on BBC One’s Sunday with Laura Kuenssberg, Reeves explained that this modification was essential as the current arrangement was no longer sustainable for the government. Under the modified regulations, effective from April 2026, only agricultural assets valued at up to ÂŁ1 million can be transferred without tax.
Any assets exceeding this limit will incur inheritance tax charges.
Labour’s #FamilyFarmTax will hinder the transfer of farms to the next generation:
đźšś Threatening food security
🧑‍🌾 Jeopardizing jobs
🌾 Causing food prices to riseSign the petition to halt this 👇https://t.co/vL3A35gGgT
— Steve Barclay (@SteveBarclay) October 31, 2024
This alteration aims to close a loophole that permits non-traditional farmers to acquire farmland strictly to evade inheritance tax. Reeves defended the decision by pointing out that previously, 40% of the benefits from agricultural property relief were claimed by just 7% of the richest landowners.
Labour has failed farmers by implementing the controversial inheritance tax changes in the Budget – essentially giving the agriculture industry the cold shoulder. #Budget2024 #FamilyFarmTax @yorkshirepost 👇https://t.co/y7tWFX2Nn5
— Robbie Moore MP (@_RobbieMoore) November 2, 2024
Changes in Inheritance Tax Policy
“I don’t believe it is financially viable to maintain a relief like this while our public services experience overwhelming pressure,” she expressed. Although Reeves assured that numerous farming families could still transfer estates valued at up to ÂŁ3 million without incurring taxes, frustration persists within the agricultural community.
Opponents include Clarkson’s Farm host Jeremy Clarkson, a farmer himself, who remarked, “This could be the breaking point for farmers who are already finding it difficult to manage.” Both the Conservatives and the Liberal Democrats have voiced dissent regarding the policy change, with the Liberal Democrats calling it the “tractor tax.” Reeves is also under fire for not exempting social care workers or GPs from the increase in employers’ National Insurance (NI), despite alerts from these sectors.
Reeves maintained that the Budget was not based on ideology, asserting, “Even with tax increases on the wealthiest, businesses, and those with assets, our focus is on ensuring public services are well-supported.”
With Labour commanding a considerable majority in the House of Commons, it is anticipated that all components of the Budget will pass unless government officials opt to retract their decisions.
