I could not agree more: the knock-on impact will be immense.
The Budget’s decision to cap full inheritance tax relief at £1 million, with a 20% charge above that, will devastate family farms. These changes know no boundaries and will affect countless small and modest family farm businesses. Independent analysis shows that up to 75,000 farming taxpayers will be impacted over a generation—five times the Government’s initial estimate. In Northern Ireland alone, the Department of Agriculture, Environment and Rural Affairs predicts that one third of farms and 75% of dairy farms will be hit the hardest. These figures are not plucked from the sky; these are real, evidenced figures from DAERA. Farmers face the grim prospect of selling off prime agricultural land, probably to big businesses that certainly do not want to use it for food production. This death tax will erode our food security and end future generational farming.
Three weeks ago, at the Eikon centre in Lisburn, I stood in front of 6,000 farmers who had braved Storm Bert to voice their concerns. Their message was clear:
stop the family farm tax grab. The Government must listen. If they proceed with this policy, it will not only destroy an industry that feeds the nation, but tarnish their legacy, with the destruction of rural communities and livelihoods. When we are asked about this Government’s legacy thus far, sadly farmers and pensioners come to mind.