Family farms in Cheshire will go out of business because of the government’s inheritance tax and the country will have to rely on lower quality imported food in a volatile world, a Cheshire East farmer warned.
Rob Brunt was one of two farmers who urged Cheshire East Council’s economy and growth committee to oppose the government’s planned new inheritance tax.
Mr Brunt told the meeting: “In a volatile world, it makes no sense to be reliant on imported food with much higher environmental costs and a higher carbon footprint.”
He said farming makes a sizeable contribution to the rural economy.
“Looking at our own business in the month of February, for example, we received income from five businesses, whereas we paid out money to more than 35 different suppliers,” said Mr Brunt.
“The largest landowners, such as the National Trust and water companies will never pay inheritance tax.
“The burden of the government’s new inheritance tax is not being shared equally, but is targeting family farms and will put many of us out of business.
“This is devastating for British agriculture, and will lead to food shortages.”
Richard Yarwood, whose family have farmed in Brereton for 100 years, said: “Farmers are motivated by their ambition to pass on the farm to the next generation, better than they started.
“But the imposition of 20% inheritance above the threshold destroys all that when the average returns on assets are hardly one per cent.”
Alsager town councillor Sue Helliwell told the committee: “The inheritance tax will be forcing generations of farmers to sell their land.
“Is this really what our council wants? More solar panels, more housing and less locally produced and sourced food?”
Later in the meeting, when the committee was debating a notice of motion about protecting family farms, Cllr Alison Heler (Con) said farming is a particular way of life and the plan is that it will be passed on to future generations.
“Since the notice of motion [which was presented to full council] on December 11, I do feel the world is even more insecure than it was, even more important we do have food security,” she said.
She added: “Farms are already under a lot of pressure, environment issues, the increasing costs, and this is just another concern.
“Suicides in farming are not a small problem, and more pressure is not good for the farming community.”
But Macclesfield councillor Rob Vernon (Lab) said the government was not introducing a new tax.
“This is the removal of a tax break that the farming community has enjoyed for 41 years, that others are not afforded,” he said.
“In fact, it’s not the removal of a tax break, it’s only the relaxation and reduction of a tax break because farmers still will not pay the same levels of inheritance tax that everybody else does on their land.”
The committee noted the notice of motion.
(story by Belinda Ryan, local democracy reporter. Pic by pxhere under creative commons licence)
Like I have said before, a lot of people voted for Labour under the misconception that it is the party of the working person, you could not have been more wrong.
The change you voted for is not the one you thought it would be.
It has resulted is higher taxes for people who work,those who have retired have lost out in their heating allowance, gas and electricity still rising, the list goes on,I understand we have to pay taxes, but do you feel you are getting value for money or even a better service, I doubt it.
I have friends who farm in North Wales. It is a family farm passed on from one generation to the next. The family work 7 days a week 12 to 15 hours a day. Some times even longer. No holiday, just the occasional break of perhaps 1 to 2 days. I have never seen people who work harder. The hours worked probably does generate an income equivalent of National Living Wage. The children are involved in the farm working at relevant levels to their age.
The government decision to apply potential inheritance tax will result on death in the break up of family farms.
Farmers I know tell me they are the Trustees of the Land , developing and protecting the land for future generations. They never realise the asset.
If the government applied tax on the sale of a farm that would be different, but making subject to tax on death with IHT is disgusting.
Sadly typical of a narrow minded, bigoted Chancellor or has mislead the public over her career and positions she has held in various organisations. Family farms are the backbone of food supply in the country.
Politicians fail to analyse the unintended consequences of their policies.
Give it 5 to 10 years and the consequences of this disastrous policy will be very evident.
It will be to late!!
I am not a farmer except potato picking as a 13 year old many years ago.
If you did not cut the mustard you were not asked to return.
As a 13 year old I discovered the world of work meant hard work.
I am totally behind the farmers. The family farmer is an unsung hero to me.
Shocking what this Labour Government is doing. People have worked hard all their lives and NOW Labour want to take excessive amounts of money in inheritance tax, when it’s not theirs to take. Two Tier Starmer and his cohorts need to take stock and stop hurting people in this country who do the decent thing with their lives – they prefer to help wastrals.