R Street Institute’s Post

British farmers are set to stage a major protest on 25 January, targeting rural constituencies held by Labour MPs. The protest is in response to the Labour government’s proposed inheritance tax reforms, announced in the October 2024 Budget by Chancellor Rachel Reeves. These changes limit the current 100% inheritance tax relief to the first £1 million of combined agricultural and business property, significantly impacting family farms. Farmers argue that the value of land, machinery, and equipment often exceeds this threshold, leaving them exposed to substantial tax liabilities. While many farmers are asset-rich, they lack the cash reserves to manage these increased burdens. The reforms are seen as a threat to food security, rural livelihoods, and the economic sustainability of farming operations. NFU President Tom Bradshaw has called the policy "destructive," stressing the need to support family farms. Meanwhile, the government remains firm, defending the changes as necessary and claiming no intention to reverse course. Critics suggest the underlying goal is to repurpose farmland for large-scale solar farms, which many see as impractical and harmful to rural communities. As tensions rise, farmers and landowners are exploring solutions to safeguard their assets and livelihoods. One such avenue is through offshore strategies. For more information, visit Offshore Advisory Group (OAG) Website: oagroup.co.uk Email: contact@oagroup.co.uk

Most days I write about Pharma but today, I'm swapping the Ph for the F, and sharing my huge and undying support for the #UK #Farmer and their work. Farming is impossibly hard. Margins are tight, work is long, mornings are early and in all of that, the end user (you and I) seldom cast a thought for the hardship that the individual has gone through to meet that burden. Today, Farmers from around the country are meeting in London to protest The Labour Party's new policies in inheritance tax, which would essentially force many farmers to sell their land (their livelihood, passed down through generations, and already taxed 100 times) as they can't afford the new inheritance. Labour sees a farm as an asset. It is. But you can only realise the fiscal benefit of the asset once you sell it, and therefore, these taxes threaten their business, their home and their inheritance. Personally, I know farmers that have had their farms through 5 generations, who now are at risk of losing them because of these laws. It is imperative that this government reverses their proposed legislation, or finds a way to fine-tune it and helps to save our UK food supply, and protect the heritage of these green and pleasant lands. This is not Labour vs Conservative, both parties failed our Farmers. It is about us, as citizens, supporting the great farming community.

This #budget is very tough for all employers, but it is the fate of the family farmers I feel for the most. The removal of agricultural property relief from farms will likely further depress agricultural property prices. It may lead to a trend of consolidation, with smaller family operations giving way to large intensive megafarms and poultry sheds that are not environmental. It will almost certainly disrupt the fabric of rural life. Farming in the UK has not yielded commercially viable returns for many decades, being dependent on government subsidy in the face of cheaper foreign imports. Food security is a strategic interest of this country, as is the contribution farming makes to the stewardship of the countryside. Historically, the agricultural property relief has helped advance this public good. I would support the removal of any APR exemption from inheritance tax from woodlands, and I can see arguments for reviewing the exemption from inheritance tax on farmhouses, the chancellor's approach seems to me to cause a degree of hardship disproportionate to the fiscal benefits.

🎥 Our CEO, Rebecca Tonks, on GB News! On Saturday, Bex joined GB News to discuss the Chancellor's proposed changes to inheritance tax, which could have profound implications for British farmers. 💡 What’s changing? As announced in the Autumn Budget (30 October 2024): - Agricultural Property Relief (APR), which helps reduce inheritance tax for farmland passed to the next generation, will be reformed. - Starting 6 April 2026, the full 100% relief will be capped at the first £1 million of combined agricultural and business property. For our 52 producer family farms, this reform represents a significant challenge, threatening the future security of British food production. That’s why we’re in London today, making our voices heard. We believe in standing with British farmers to ensure a sustainable future for British agriculture, do you? 📢 Save Britain's Family Farms. Your food, your farmers, your future! #BritishFarming #GBNews #SupportFarmers #InheritanceTax #BritishFoodSecurity #StEwe #StopFamilyFarmTax

My family have married into the farming world and one of my oldest friends runs an amazing Organic Beef and Lamb farm in Lancashire, this tax is simply catastrophic if it goes ahead and the future of your UK food production is very much at risk. ➡️➡️➡️➡️ Please sign this my LinkedIn community! You will have seen and heard farmers and growers across the country angry and concerned for the future after the Chancellor’s Budget on 30 October announced changes to Agricultural Property Relief (APR) and Business Property Relief (BPR).   Let’s be clear, if this tax change goes ahead, it will deal a hammer blow to farming families, after decades of tightening margins, record inflation, extreme weather and increased production costs, many farmers and growers are at breaking point, unable to absorb any more cost burden. This matters because it has the potential to reduce UK food production and alongside the increases in employment costs, the cost of food production rises, with many people still facing a cost-of-living crisis. For everyone that loves and enjoys our precious rural areas, this tax change could alter our iconic landscapes forever.   The Chancellor says the £1million cap will protect small family farms. It won’t. Put simply, many family farms will be impacted because while lots of smallholdings and houses with a few acres let for grazing might be okay, very few viable farms would be worth under £1million. Farmers are often cash poor even if on paper their farms are valuable when sold. Join the growing call to overturn this policy. https://lnkd.in/gyDDvJmy

Our director and agricultural tax specialist, Ian Parker, has reviewed the latest spring budget to explore its impact on farmers and rural communities.. In his latest blog, Ian covers topics such as: ◾️Extension to Agricultural Property Relief (APR) ◾️Tax breaks ◾️Furnished Holiday Lettings Find out more here ⬇️ https://lnkd.in/ei9ESBaC #springspotlight #APR #ltaxbreaks #holidaylettings #springbudget

Billionaires are buying up farm land for investment and tax efficiency purposes. There are very few scenarios where this can be in the interests of the people. So, the government's intention to change Agricultural Property Relief is based on good principle. However, the current government proposal ensnares too many small family farms. Hardworking low income farmers are not amongst the first groups that should be targeted for new tax revenues. Land management expertise risks being lost. Farms producing sustainable food depend on financial and practical support to continue feeding us for generations to come. This article from Will White at Sustain: The alliance for better food and farming provides a balanced and informative review of why farmers so fiercely oppose this planned reform and makes some good suggestions on how it could be done better.

Increased funding for a farm bill next year is not a given, nor could it be counted on to boost political support for a five-year farm and nutrition bill. A streamlined budget process known as “reconciliation” allows the Senate to pass tax, spending, and debt limit bills with a simple majority vote instead of a filibuster-proof 60-vote margin.

Sometimes it is very hard to read comments from MP's and I am struggling to see how those provided by Steve Reed, MP, who is appointed as the Environment Secretary, are founded in reality. The Government don't seem interested in actually listening to the widespread outrage that the recent budget and its impact on farming families and communities is causing. Given the widespread protests from farmers across the country, but also from professionals across the private client sector, I am struggling to understand why the Labour government still refuse to be transparent with the data they are relying on to show that less than 500 farms will be impacted, but also how the inheritance tax raid will be good for farming. How will more land be used for agricultural? And food production? Doubling down rather than listening to the objections and response doesn't seem to be a good sign of a good government or leadership. Nor is this helped by the comments made in the run up to the election, and after the election where farmers and the farming community were repeatedly reassured that it would offer a new deal for farmers to boost rural economic growth and strengthen Britain's food security. #inheritancetax #farmingfamilies #farminginheritancetax #budget2024 #willsandprobate #willsandtrusts #farmingdisputes #culverlaw https://lnkd.in/epsxK__P