More than 100 Conservative MPs, MSPs, MSs and councillors have called on Labour Prime Minister Andy Burnham to reverse changes to inheritance tax affecting farmers in the upcoming Autumn Budget.
Chancellor John Healey is due to deliver the Budget on October 28, with the letter warning that the farming sector is facing a “once-in-a-generation crisis”.
The politicians argue that farmers are already dealing with suppressed market prices, supply chain disruption, drought and growing disease threats, while changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) announced in Labour’s 2024 Autumn Budget have added further pressure.
They wrote: “But, as you will be well aware, the changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) introduced by Labour in the 2024 Autumn Budget have also brought an intolerable level of distress and pressure to our family farmers.”
The letter claims the so-called 'family farm tax' is also affecting investment, with farmers diverting money towards meeting potential future inheritance tax liabilities.
“As a direct consequence of the family farm tax, farmers are curtailing capital investment in their businesses, with every spare penny being diverted away from commercial development to save for future inheritance tax burdens.”
The politicians cite figures from CBI Economics suggesting 55% of BPR-affected and 49% of APR-affected businesses have paused or cancelled planned investment.
They also claim almost one in four family farms and businesses have reduced headcount.
The letter highlights Burnham’s recent pledge that 'the ability to grow our own food is national security, and I will treat it that way'.
“If these are to be more than just words, the government needs to take real action,” the letter states.
It concludes with a direct question to Labour: “Will Labour finally listen?”
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