Farmers demonstrate against proposed inheritance tax relief changes

Agricultural producers have been expressing opposition to modifications in inheritance tax relief, which they characterize as “an attack on the rural economy”. Approximately 50 individuals from north-east England and Cumbria convened outside the Northern Farming Conference in Hexham, Northumberland, an event attended by Rural Affairs Minister Daniel Zeichner. Andrew Moralee, an agriculturalist from Willington, County Durham, stated: “I’m here because I’d like to hand the land to my son but these changes will make that very hard.” Chancellor Rachel Reeves has justified her proposed changes, asserting that maintaining the current system is not “affordable”. According to proposals unveiled in the Budget, inheritance tax is set to be levied at 20% on agricultural assets exceeding £1m, though Reeves has indicated that in certain instances, the practical threshold might be approximately £3m. Mr. Moralee cultivates 500 acres at Lowfield Farm alongside his father and son, Jack. He commented: “This inheritance tax change is going to be a real issue for us, it’ll mean young people leave the industry.” He added: “We’re buying poor quality beef from abroad while our farmers lose hope.” Simon Bainbridge, an agricultural producer in Cambo, Northumberland, participated in the conference and intended to query the minister. He stated: “I want to tell him how farmers are feeling on the back of two miserable harvests.” He further remarked: “Financial support for farms is being reduced more quickly than we thought, it feels like an attack on all sides for everybody is the rural community.” Iain Brown, an agriculturalist from North Northumberland, expressed that the government had “no concept” of the strenuous efforts farmers put in for “so little”. He added: “We’ve got mortgages to pay, and are working flat out, and we are told it’s the wealthy landowners that can afford to pay more.” The government asserted that most family farms would retain the ability to be passed on exempt from taxation, with solely the nation’s 500 wealthiest estates expected to incur higher payments. During his address, Zeichner informed attendees that the government’s agricultural budget of £500m for the forthcoming two years constituted “record” spending on agriculture. He further stated that revenue generated from taxes would be allocated to services aiding the countryside, including initiatives like tackling rural crime and enhancing health services in rural areas. Mark Mather, a tenant farmer and Conservative councillor for Wooler, Northumberland, also commented: “These changes will leave the poorest buying sub-standard food that’s come half way across the world.” Liberal Democrat environment spokesman Tim Farron, who serves as MP for the rural Cumbrian constituency of Westmorland and Lonsdale, asserted that the inheritance tax modifications could lead to the fragmentation of family farms. He stated: “The majority of people this will hit run what we would refer to as small family farms – huge acreage, with value in the farm buildings, but tiny incomes.” He further noted: “In the last five years hill farm incomes have dropped by 41%, so we are not talking about wealthy people.” Reeves utilized her inaugural Budget to declare an amendment regarding agricultural property relief (APR) and business property relief (BPR) effective from April 2026. Budget documents indicate that the government aims to limit the “generosity” of APR and BPR for the “wealthiest estates”. She commented that “only a very small number of agricultural properties” would be affected and that “difficult decisions” were essential to rectify public services and establish a more stable economic foundation. Follow BBC North East on X, Facebook, Nextdoor and Instagram. Send your story ideas to northeastandcumbria@bbc.co.uk.Copyright 2024 BBC. All rights reserved. The BBC is not responsible for the content of external sites. Read about our approach to external linking.