MPs advocate delay for farm tax

Members of Parliament have called for a year-long delay to the controversial farm inheritance tax, expressing concerns over its potential impact on the agricultural sector and UK food security. Expert Tom Gauterin of Freeths has highlighted that the select committee’s recommendations reflect widespread apprehensions from farmers and advisors, stating "The evidence they have seen suggests that as many as 70,000 farms could be adversely affected by the current proposals, which is more widespread than the Government claimed at first." Gauterin emphasised that the committee’s evaluation points to a significant lack of proper consultation regarding the tax, particularly regarding its implications for food security. He pointed out that “there seemed to have been no thought given to the implications for the UK’s food security, to which the committee has drawn welcome attention.”

Notably, the committee is composed mainly of Labour MPs, leading to concerns that the Government may have prioritised its political agenda over the needs of farmers. As Gauterin noted, “We can only hope that the Government are more willing to listen to their own MPs, than they have so far been to farmers and their advisors.” He suggested alternative approaches for addressing tax sheltering by investors in farmland that could provide a more equitable solution. Amidst calls for government responsiveness, he concluded, “It remains to be seen whether the hard realities of policymaking are something they intend to engage with.”