NFU says government will reap what it sows after alternative to family farm tax goes unheard by Treasury
The devastating impacts on farming families and the nation’s food security from the family farm tax sit squarely on government’s shoulders, the NFU said today, after ministers bluntly refused any suggestion of a compromise offered by farming unions and organisations.
The stark warning comes after Exchequer Secretary James Murray and Food Security Minister Daniel Zeichner called in representatives from across the farming sector including the TFA (Tenant Farmers Association), CLA (Country Land and Business Association) and CAAV (Central Association of Agricultural Valuers), and the wider UK farming unions, only to tell them the government had no interest in compromise.
Speaking after the meeting, NFU President Tom Bradshaw said: “Disappointed doesn’t cover how I feel after this meeting. We have repeated our concerns about the impact on farming families; they don’t care. On the impact on families who can’t afford vast tax bills coming their way on the death of a loved one; they don’t care. On the elderly – the most vulnerable people in our farming community – who feel they are now a burden on their family; they don’t care.
“This morally bankrupt position sits with this government, and, without change, ministers will reap the consequences.


“For the 70 million people living on these islands, food security matters. It matters more given the ever-increasing geopolitical uncertainty. While this is shocking for me to say, the only conclusion I can come to is this government doesn’t care about British food production. Is this the same government which in its manifesto said food security is national security?
“We went into this meeting fully understanding the fiscal hole this government must plug, and we went into this meeting to offer a solution, a solution which has been suggested by other tax experts where the inheritance tax policy is based on a claw back mechanism.
“Put simply, farmers don’t get money when they inherit, they get the farm, the business asset, and often the debt. Any money they do get, they get when they sell. So, our suggestion is based on that premise. Our suggestion, which is almost revenue neutral meaning the Chancellor gets her planned income, is that if an inherited farm is sold then inheritance tax gets paid. Crucially, this would allow family farms that want to continue to produce the nation’s food to do so, while giving the Treasury what it wants.
“We also need to be clear, the current talk that the £500 million this generates, which will be raised on the backs of hard-working and hard-pressed farmers, will rescue the NHS is nonsense. This amount will fund the NHS for a day. It’s disingenuous for ministers to repeat this untruth.
“Despite the Chancellor calling for alternatives, and the UK food sector went collectively to share those, I am hugely disappointed there was no response from Treasury , no acknowledgement that this could be done better. This is the same Treasury department which admits it has not yet carried out impact assessments on its current policy. Let’s remember, this policy has now been challenged by farming unions and agriculture representatives from across the UK, it has been challenged by the independent Office of Budget Responsibility, by the Efra Select Committee, by tax advisors to the government, and recently the National Preparedness Committee has reminded us that UK food security is in a precarious state.
“And every single major food retailer in the UK has also called for change. Why? Because they can see what this will do to the security of the supply of their products.
“This is a mess, but there is still time for Treasury to review. I urge them to look at the proposal put to them by all the major farming organisations. It will raise the money needed. It is a way forward which is fair, removes the huge risk to British agriculture, including significant emotional and financial pressures, and delivers for UK food security, something the government continues to insist is a priority.
“I want to thank NFU members for their continued support and I thank the public who continue to stand by British farming, with 275,000 people signing our petition. Thank you to those back-benchers who have come out to support their rural constituencies and thank you to those political parties which have pledged to dump this awful policy if they’re elected. From what we are told, the Chancellor has refused even to meet with her own worried MPs on this issue.
NFU Lancashire County Chair Becki Fielding said: “It is extremely frustrating that the government is refusing to properly engage with us.
“The meeting with the Treasury this week showed they are currently unwilling to listen to reasoned argument and sense and want to push through with this ill-thought-out and hugely damaging policy without holding it up to proper scrutiny and analysis.
“Our President Tom Bradshaw went into the meeting with well thought-out alternatives to the government’s current inheritance tax proposal, put together with tax experts.
“These proposals would raise significant income for the government and tackle tax avoidance, which the current proposals do not achieve, without devastating the rural economy, threatening national food security or threatening the future of small and medium-sized family farms.
“The Stop the Family Farm Tax campaign is not over and we will continue to push forward. We will not stop until this damaging policy is held up to proper scrutiny and consultation, with the next step being NFU Conference in London next week.
“I urge all farmers and members of the public who value their farmers and growers in Lancashire to write to their MPs, urging them to push for the government to pause this damaging inheritance tax policy and properly hold it up to proper scrutiny and consultation.” eads in the sand, fingers in ears, zero empathy. What a way for a government to behave.”