Farmer tells local MP that Budget is “most dramatic attack on farmers in over 50 years”

65 farms in the Chippenham constituency could be hit by the “family farm tax” following the government’s decision to cut inheritance tax relief for farms. Local Liberal Democrat MP, Sarah Gibson, is calling on the government to scrap the tax hike on farms.

Since the Chancellor delivered the Budget on Wednesday, Sarah Gibson MP has spoken with farmers in the Chippenham constituency who are concerned about how it will impact their livelihoods. The following issues are of particular concern: 

• The farm budget for England overall has been frozen with suggestions that it will be cut in future years and the path to ending direct payments to farmers has been accelerated.
• The budget also outlines changes to APR on inheritance tax, affecting family farms, tenant farmers on larger properties and the many rural businesses (such as vets and agricultural merchants) which rely on this economic ecosystem.
• In addition, the Budget re-instates previously abandoned increases to tax on double-cab pickup vehicles used by agricultural businesses. Changes to National Insurance employer contributions are also likely to impact SMEs in rural communities disproportionately.

Additionally, the government has previously said that 27% of farms will be affected by the changes which cut the levels of inheritance tax relief for farmers in a move that Sarah Gibson MP has said is “disastrous for local farmers and small businesses”. If 27% of farms in the Chippenham constituency were to be affected by these changes, 65 would be hit by the government’s “family farm tax”. Sarah Gibson MP has called on the government to scrap the “family farm tax” and take up Liberal Democrat proposals to put forward an additional £1 billion a year in support for farmers.

Lacock farmer, Paul Weaver, told Sarah Gibson MP:

“A traditional family farm is currently too small to pursue agricultural practices without diversification. The Budget spells disaster for investment and will accelerate the loss of family farms like mine. This Budget has been the most dramatic attack on farmers in over 50 years.”

Liberal Democrat MP for Chippenham, Sarah Gibson MP, commented on the Budget:

“After years of the Conservatives taking rural communities for granted, it is deeply disappointing to see more of the same from this new government. I am very worried about the impact of the changes in the Budget on rural areas like ours, including the changes to Agricultural Property Relief which effectively amount to a family farm tax. These changes could be disastrous for local farmers and small businesses.

“I am therefore fighting the Government’s family farm tax tooth and nail and urging the Chancellor to give farmers an additional £1 billion a year in support”.