Cambridgeshire farmer fears for future if inheritance tax change goes ahead

A Cambridgeshire farmer fears his business could be under threat if the Government's inheritance tax plans don't change.

The warning comes as Environment Secretary Steve Reed was quizzed by farmers at a National Farmers' Union conference on Tuesday about the move.

"We will not be able to continue as we are; we'd have to sell off land and to be honest, when you're working on a paper thin margin, it becomes massively unprofitable very quickly," Tom Martin, an arable and livestock farmer near Peterborough, said.

Tom attended the conference in London to hear from Mr Reed, who set out measures to improve the profitability of agriculture which he said was the problem at the "heart of the crisis in the sector".

Under the Government's inheritance tax plans, agricultural assets worth more than £1 million would be taxed from April next year.

Mr Reed apologised for having to take the "very difficult decision" to introduce the tax to ensure financial stability in the economy.

Tom's family have been farming for four generations and is unhappy with where the industry could be heading.

"We're against their (the Government) current policy; we want the British public with us and not intending to do anything that will distance us from the public," he said.

What are some of the measures to boost farming?

• 25-year farming roadmap and food strategy: aims to put food production at its core and makes farm businesses more resilient to shocks such as severe flooding, drought and animal disease.

• £30 million increase: to payment rates in higher level stewardship schemes, to reward farmers at the forefront of nature-friendly farming schemes.

• Seasonal worker visas: a five-year extension to give farms a pipeline of workers and certainty to grow their businesses.

• £110 million investment in technology: to support research and development of agri-technology for farmers, such as the chemical free cleaning for integrated milking equipment, which lowers energy costs and chemical use.

Roadmap 'means nothing' if business fails to survive

NFU president Tom Bradshaw told his organisation's conference that the inheritance tax policy was "morally wrong and economically flawed".

Mr Bradshaw also called for the Government to have "a reset moment with farming, where they face up to the reality of how much the industry is struggling."

Tom believes the measures announced are like "a sticking plaster on an amputated arm.

"Roadmaps are great because you need to see where you're going, but we have immediate concerns not being addressed," he added.

"The carrot of a long-term roadmap being dangled when if my business doesn't exist in a few years' time, the 25-year roadmap means nothing.

"I think talk of a reset is reminds me of an abusive partner that says they can change, but we know in cases of abuse that it all too often doesn't and I'm hearing farmers saying 'I don't trust them (the government)'."

What does the Government say?

Mr Reed said he will "consider my time as Secretary of State a failure" if he fails to improve profitability for farmers in the UK.

"My focus is on ensuring farming becomes more profitable because that’s how we make your businesses viable for the future. And that’s how we ensure the long-term food security this country needs," he said.

A Government spokesperson said it has committed "£5 billion to the farming budget over two years, including more money than ever for sustainable food production.

“Our reform to Agricultural and Business Property Relief will impact around 500 estates a year.

"For these estates, inheritance tax will be at half the rate paid by others, with 10 years to pay the liability back interest-free; this is a fair and balanced approach which fixes the public services we all rely on."

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