Agricultural Property Relief and Business Property Relief – Family Farms
The Liberal Democrats had already warned the Chancellor in correspondence well in advance of the Budget statement why such changes could seriously undermine the future viability of many farm holdings. However, as feared, the Chancellor went ahead anyway.
Following the Budget, Liberal Democrats spoke out about this in the Commons. We have not given up and will continue to press the Government to think again. We are still collecting examples of cases where this change will cause detriment to viable farming. If you have any evidence, please let me know and I will (anonymously, of course) ensure we share it with Ministers as part of our efforts to persuade them of the need to review this policy.
I set out below a comment issued by the Liberal Democrats immediately after the budget, setting out our collective opposition:-
30th October 2024.
‘They’ve thrown farmers to the wolves’ – Tim Farron MP reacts to Budget.
Commenting on the reductions in agricultural property relief on inheritance tax announced in today’s Budget, Liberal Democrat Rural Affairs Spokesperson MP Tim Farron said: “The victims of the Chancellor’s Agricultural Property Relief changes will be our hardworking farmers”.
She is incentivising some large landowners to enact modern-day farm clearances. And small family-owned farms will also be hit by this. Many will be forced to sell up, with young people robbed of their opportunity to farm”.
“And hidden deep in the Budget document is a strong hint that the Government may cut the farming budget”.
“Tory failure and betrayal on agriculture has now been compounded by Labour, who have thrown farmers and food production to the wolves.
“Liberal Democrats will fight this every step of the way”.
“As DEFRA spokesperson for the Liberal Democrats and the Chair of the APPG on Hill farming, l know only too well how much farmers have suffered in recent years and why this feels like a further betrayal. It is estimated that capping agricultural property relief at £1m could harm 70,000 UK farms, damaging family businesses and destabilising food security. In its attempts to raise more revenue, the Government will cause great damage, jeopardising the future of rural businesses up and down the country”.
We will continue fighting for the Government to rethink this ill-conceived tax raid.