MP Dan Aldridge says proposed farming changes will fix public services

Farmers who protested recently are concerned that plans announced in the recent budget to amend relief for farmers on inheritance tax are going to make their livelihoods unsustainable.

MP Dan Aldridge said the Labour government has committed £5 billion to the farming budget over two years – “the largest budget for sustainable food production in our history”.

“While we understand concerns about changes to Agricultural Property Relief (APR), the majority of those claiming relief will not be affected by these changes.

“We are asking rich estates and the most valuable farms to contribute as we rebuild our economy and society after the decline of the past decade.

“We all have family and friends struggling to get by, to access a dentist, to get medical treatment, secure housing, or social care,” he said.

“This is a fair and balanced approach that protects small family farms whilst also raising the taxes we all need to fix the public services we all rely on.

“On the details, depending on people’s individual circumstances, up to £3 million can be passed on by two people free of inheritance tax.

“Anything beyond that will be taxed at half the rate paid by everyone else, and their heirs can spread the payment over ten years instead of having to pay it all at once,” he also said.

The government proposal calls for changes in tax relief with only the first £1 million of any farming business to be exempt from such tax.

After that threshold is crossed, farms would pay 20 percent inheritance tax rather than the standard 40 per cent.

Farmers worry that such proposals will affect far larger amounts of family farms than the government is claiming.

While the government has said only about 27 per cent of farms will be affected, farmers say that figure is closer to two-thirds.

Farmers with concerns can get in touch by emailing Daniel.aldridge.mp@parliament.uk