Farmer reports significant decline in industry confidence over new tax

An agricultural producer has stated that morale within the sector has “dropped off a cliff” following the introduction of inheritance tax, urging the government to intervene. Will Hitchcock, who operates a farm in Claydon, close to Ipswich, with his family, expressed concerns that these alterations could jeopardize the future of farming. Mr. Hitchcock is among thousands of farmers demonstrating outside Westminster, opposing government proposals to levy a tax on inherited agricultural assets exceeding £1 million in value. Peter Prinsley, the Labour Member of Parliament for Bury St Edmunds and Stowmarket, clarified that the modification was essential to assist in “put the country right”. The Labour government’s recent Budget outlined that starting April 2026, inherited agricultural assets valued over £1 million, which were previously exempt, will incur inheritance tax at a rate of 20% – half the standard rate. Mr. Hitchcock is involved in managing Hitchcock Farms Ringshall, a business his family has operated in the region since 1762. “We’re in a situation where we don’t really know what the next few months, let alone years, have got in store for us,” he stated. He added, “There seems to be a huge lack of incentive from the government to support homegrown produce, which is critical.” He further commented, “The confidence in the industry has dropped off a cliff and quickly the government need to do something otherwise the future of homegrown produce is at stake.” Conversely, David Wolfe, who manages Wakelyns Farm, an organic agroforestry operation located near Fressingfield, supports the government’s stance. “I certainly think the problem has been overstated by some of the people who are protesting about it,” he remarked. He continued, “Somebody who inherits a business worth £5m normally expects to pay inheritance tax on that and it’s not obvious to me why in 2024 somebody inheriting £5m of land should be any different.” “It’s a basic fairness question,” he concluded. Mr. Wolfe proposed that farmers could mitigate the issue by retiring and transferring their farms to their children prior to their deaths. Although his own farm is not large enough to be impacted by the government’s proposal, he expressed interest in whether the change might facilitate new entrants into farming or encourage younger generations to assume control of their farms sooner. Labour MP Prinsley indicated that he comprehended both perspectives of the debate. “It’s quite easy to understand why the farmers are so annoyed by this because it seems it has come out of the blue that they’re going to be suddenly faced with this very large tax bill and they’ll have to think carefully about how best to mitigate it,” he commented. Prinsley stated his expectation that some farmers would secure loans against their farm’s value to cover the tax, but emphasized his desire to avoid farm closures. He added, “I’m sorry that this has happened but this is what the government has decided to do to try and put the economy right.” “As the economy improves and as the government’s measures start to improve everybody’s lives, what we’ll have to hope is that people can see this was the right thing to do,” he concluded. For updates on Suffolk news, content is available on BBC Sounds, Facebook, Instagram, and X. Copyright 2024 BBC. All rights reserved. The BBC disclaims responsibility for the content of external websites. Information regarding our external linking policy is available.