Inheritance tax changes for farmers are ‘fair way to raise money', says minister
Chancellor Rachel Reeves was urged by opposition MPs to reverse the 'family farm tax' and stop 'running away' from meeting farming unions, as farmers continued their protest action on Tuesday with a 'Pancake Day Rally' in Westminster.
But her Treasury ministerial colleague James Murray said he spent time meeting with farmers' representatives and listening to their concerns, telling the Commons: 'We have to be honest that we disagree.'
The policy would require farmers to pay a rate of 20% inheritance tax on agricultural property and land worth more than £1 million when they previously paid none.
There is a higher threshold of £3 million for couples passing on their farms and the changes are due to come into force from April 2026.
TUV leader Jim Allister, MP for North Antrim, told Treasury questions in the Commons: 'With farmers again protesting in Westminster today, why is the Chancellor of the Exchequer running away from meeting the farming unions across this nation?
'Why do those who feed our nation not deserve some of the Chancellor's time?'
Ms Reeves remain seated and left the question to Mr Murray, who replied: 'Just two weeks ago I spent a fair amount of time meeting with representatives from the NFU and other representative organisations from different nations within the UK.
'I listened to their concerns, I listened to what they had to say. We have to be honest that we disagree.
'They do not agree with the Government's policy and I need to be direct about that because we had to take a number of difficult decisions at the budget, but I do not apologise for the importance of balancing the public finances and sticking to our fiscal rules.'
Tim Farron, the environment, food and rural affairs spokesman for the Liberal Democrats, said: 'Britain is only 55% food secure. In these deeply uncertain times internationally, isn't it time to change policy when it comes to agriculture?
'Isn't this the day to get rid of the family farm tax and to undo the 76% cut in basic payments and invest in the people who keep us food secure?'
Mr Murray replied: 'As I've made clear to other MPs, the changes to agricultural property relief are a fair way to raise money which is necessary to balance the public finances.
'Britain has excellent food security and that is a priority for this Government.'
Conservative former Treasury minister Dame Harriett Baldwin earlier said: 'The art of taxation is extracting the largest amount of money with the lowest amount of squeaking from the goose and yet the Chancellor will have heard the honking of the tractors on Whitehall today, to raise an amount of money that will pay for less than one day of NHS spending.
'So will she commit today to reversing the family farm tax?'
Mr Murray replied: 'The changes we've made to agricultural property relief and business property relief retain a generous relief for people who are accessing that benefit within the taxation system.
'It means that people will get £1 million without any inheritance tax being due, that is in addition to the existing nil-rate band spousal transfers – over that is up to an effective rate of 20% and any money which is due can be paid over 10 years interest free.'
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