Suffolk farmer urges Government to cancel inheritance tax changes
He says the Government doesn't know how the industry works
Farmers from Suffolk campaigning against planned changes to inheritance tax tell us the Government simply doesn't know how their industry works.
This comes after Environment Secretary Steve Reed was quizzed by farmers at a National Farmers' Union conference on Tuesday.
Glenn Buckingham is the chair of the NFU in Suffolk, he attended the conference in London to hear from Mr Reed, who set out measures to improve the profitability of agriculture which he said was the problem at the "heart of the crisis in the sector":
"It's the innocent victims, especially the elderly farmers, who may well end up dying, with their farms having to pay a tax only through selling (land and parts of their farm), which then precludes the next generation from coming through the farm, so it's absolutely vital the protest continues."
Mr Reed apologised for having to take the "very difficult decision" to introduce the tax to ensure financial stability in the economy.
As a result, Glenn told us he feels "there is a realisation in their heart of hearts that this (the inheritance tax) isn't a good decision."
The Environment Secretary also announced a series of new measures to boost farming:
- 25-year farming roadmap and food strategy: This aims to put food production at its core and makes farm businesses more resilient to shocks such as severe flooding, drought and animal disease.
- £30 million increase: To payment rates in higher level stewardship schemes, to reward farmers at the forefront of nature-friendly farming schemes.
- Seasonal worker visas: A five-year extension to give farms a pipeline of workers and certainty to grow their businesses.
- £110 million investment in technology: To support research and development of agri-technology for farmers, such as the chemical-free cleaning for integrated milking equipment, which lowers energy costs and chemical use.
Roadmap 'means nothing' if business fails to survive
NFU president Tom Bradshaw told his organisation's conference that the inheritance tax policy was "morally wrong and economically flawed".
Mr Bradshaw also called for the Government to have "a reset moment with farming, where they face up to the reality of how much the industry is struggling."
Tom believes the measures announced are like "a sticking plaster on an amputated arm".
"Roadmaps are great because you need to see where you're going, but we have immediate concerns not being addressed," he added.
"The carrot of a long-term roadmap being dangled when if my business doesn't exist in a few years' time, the 25-year roadmap means nothing.
"I think talk of a reset is reminds me of an abusive partner that says they can change, but we know in cases of abuse that it all too often doesn't and I'm hearing farmers saying 'I don't trust them (the government)'."
What does the Government say?
Mr Reed said he will "consider my time as Secretary of State a failure" if he fails to improve profitability for farmers in the UK.
"My focus is on ensuring farming becomes more profitable because that’s how we make your businesses viable for the future. And that’s how we ensure the long-term food security this country needs," he said.
A Government spokesperson said it has committed "£5 billion to the farming budget over two years, including more money than ever for sustainable food production.
“Our reform to Agricultural and Business Property Relief will impact around 500 estates a year.
"For these estates, inheritance tax will be at half the rate paid by others, with 10 years to pay the liability back interest-free; this is a fair and balanced approach which fixes the public services we all rely on."