The devastating impact on farming families and the nation’s food security from the family farm tax sits squarely on the Government’s shoulders, warned NFU President Tom Bradshaw following a meeting with Exchequer Secretary James Murray and Food Security Minister Daniel Zeichner.
At the meeting, which also included the TFA (Tenant Farmers Association), CLA (Country Land and Business Association) and CAAV (Central Association of Agricultural Valuers), ministers didn’t budge from their current position.
Speaking after the meeting Mr Bradshaw said: “Disappointed doesn’t cover how I feel after this meeting.”
He added: “This morally bankrupt position sits with this government” and warned that, “without change, ministers will reap the consequences. We went into this meeting fully understanding the fiscal hole this government must plug, and to offer a solution.”
He continued: “For the 70 million people living on these islands, food security matters.
“It matters more given the ever-increasing geopolitical uncertainty.
“While this is shocking for me to say, the only conclusion I can come to is this government doesn’t care about British food production. Is this the same government which in its manifesto said food security is national security?
“We went into this meeting fully understanding the fiscal hole this government must plug, and we went into this meeting to offer a solution, a solution which has been suggested by other tax experts where the inheritance tax policy is based on a clawback mechanism.”
Clawback solution
In the meeting the delegation offered a solution via a clawback mechanism. Rather than paying IHT on inheriting a farm but when it is sold. “Farmers don’t get money when they inherit, they get the farm, the business asset, and often the debt. Any money they do get, they get when they sell,” added Mr Bradshaw.
“Despite the Chancellor calling for alternatives, and today the UK food sector went collectively to share those, I am hugely disappointed there was no response from the Treasury, no acknowledgement that this could be done better.
“This is the same Treasury department which admits it has not yet carried out impact assessments on its current policy.
“Let’s remember, this policy has now been challenged by farming unions and agriculture representatives from across the UK, it has been challenged by the independent Office of Budget Responsibility, by the Efra Select Committee, by tax advisers to the government, and recently the National Preparedness Committee has reminded us that UK food security is in a precarious state.
In addition, he also noted every major UK food retailer had also expressed concerns.
The NFU will bring to life the effect of the government’s proposed inheritance tax changes on all farming generations with a display of tractors and pre-loved farm toys outside its annual conference in London on 25 February.
