London (Parliament Politics Magazine) – Farmer union Bradshaw condemned government inheritance tax changes as a “betrayal,” warning they could increase food prices and harm farmers.
The leader of the National Farmers’ Union (NFU) has blamed the government for an extraordinary “betrayal” over its budget shifts to inheritance tax for agricultural properties, as he addressed hundreds of farmers who have trekked to London to lobby their local MPs.
How will inheritance tax changes affect farmers and food prices?
Addressing nearly 600 farmers at Church House in Westminster, Tom Bradshaw expressed the government measures as a “stab in the back”, after the sector had been previously implied that taxes such as agricultural property relief (APR) would not be altered. “I don’t think I have ever seen the industry this angry, this disillusioned, this upset,” Bradshaw said, describing the measures as a “shocking policy, built on bad data, and launched with no consultation with anybody that understands”.
He cautioned that government measures, also including modifications to national insurance contributions, coupled with a competitive retail environment the actions would push up food prices, defining it as an “inflationary budget for food production”.
How does the NFU dispute government claims on tax impact?
Ministers express that the actual threshold before paying inheritance tax could be as much as ÂŁ3m, once immunities for each partner in a couple and for the farm property are taken into account. According to the Treasury, 27% of estates declaring APR were above the ÂŁ1m threshold in 2021-22, indicating that nearly three-quarters of farms would not fall within the scope of the charges.
The NFU has denied the government’s claims that most farms will not be impacted by the change, and thinks instead that it will apply to 75% of what it calls “commercial farm businesses”.