The gauntlet has been thrown down to the farming lobby to retaliate following last week’s bombshell budget, which delivered a frontal assault on farming livelihoods.
The spotlight is firmly on the family farm tax, and it’s now or never for the industry to stand up for future generations. It isn’t easy explaining how a seven-figure threshold on inheritance tax is unfair to the general public.
But farms are not luxury houses being passed on to children who already have homes and careers. These are multi-generational businesses, where often the same family has worked the land for decades, if not centuries. They now run the risk of a tragic death stopping the next generation from their turn at the helm.
Imagine, it’s hard enough to lose one’s parents, but to then be saddled with an unaffordable bill from HMRC would shake even the most confident young farmer. But it’s no good moaning in an agricultural echo chamber—direct action is a must to make Labour think again and roll back this family farm tax.
The tragic irony of Labour’s decision is bitter indeed. The party of working people has made a choice which is likely to accelerate the concentration of land into the hands of fewer corporations, limited companies, and trusts, which operate at a scale which can afford solicitors and accountants to keep businesses one step ahead of the taxman.
It’s heartening to see rallies being organised across the UK, and the more farmers attending, the harder it will be for urban elites to dismiss attendees as ‘moaning millionaires’. The plight of our sector has even caught the imagination of the broader media, proving farming still holds a special place in the national heart – though this affection rarely translates to farmgate prices.
Every day counts now. As the news cycle moves on, the family farm tax risks being pushed out of the headlines. Action plans must be ready and waiting for any government announcement, allowing farmer voices to be effectively communicated to the public and politicians while the debate is still hot. Inheritance tax changes have been suspected since the general election in the summer, so there is no excuse for unions to be scrambling for a plan.
On a practical level, the best guidance from experts is to hang fire on drastic changes to business structures and legacies. Solutions will emerge as the rules are clarified, and Scotland is fortunate to have a strong legal and accountancy sector to guide businesses.
Amongst clouds of worry there could be a sliver of a silver lining in years to come. These inheritance tax changes could prompt families to tackle tender conversations about succession sooner rather than later.
Falling land prices might offer opportunities for new entrants to farming, but in reality, any forced sales to pay death duties will likely be snapped up by larger farms with better borrowing power. Any long-term benefits look incredibly distant at the moment following the very immediate damage inflicted on the rural economy since October 30.
The focus now must be on articulating the voice of rural Scotland, which was dealt a harsh blow by Rachel Reeves at the Westminster dispatch box. Everything possible must be done to push for a higher inheritance tax threshold.
We cannot allow the end of a farmer’s life mean the end of a farming dynasty.
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