Dear Constituent,
Thank you for contacting me about the Government's Family Farm Tax.
British Family-run farms are the backbone of our nation. They make a vital contribution to our local economy, our food security, and the stewardship of our countryside. For generations, these farms have passed from parent to child, embodying a legacy of hard work, stability, and community resilience.
At a time when food security and affordability are more important than ever, the Government should be supporting our British farmers - not undermining them. It is disappointing, therefore, that in the Autumn Budget 2024, the Government announced its intention to introduce a Family Farm Tax. Such a tax risks splitting up family farms, increasing food prices, and reducing domestic food production, while showing little ambition for the farming sector. You can read more details about the tax and the devastating impact it would have on our farming industry and national food security here.
In my role as Member of Parliament for North Bedfordshire, I have championed British farmers, and since the Autumn 2024 Budget announcement, I and my colleagues in HM Opposition have been working together with farmers to campaign against the Government's cruel, damaging policy. In Parliament, as Shadow Chief Secretary to the Treasury, challenged the Government on the harmful impact this policy will have on British farmers, including during my speech closing the Budget Debate. I have also met regularly with farmers, both in North Bedfordshire and at national events, to hear farmers' concerns first hand. These farms are not merely businesses; they are the lifeblood of our rural economy which have been passed down through generations and they embody our nation's agricultural heritage.
On 2nd December I, and my colleagues in HM Opposition stood in support of our British Farmers and voted against the Government's legislation to introduce this tax. The Leader of HM Opposition, Kemi Badenoch, has also committed to repeal the Family Farm Tax should the Conservative Party be re-elected to government.
Under intense pressure, the Government yielded and snuck out a partial u-turn just before Christmas and increased the tax threshold from £1 million to £2.5 million. This change means some farmers will be able to pass their holdings onto their children and continue to grow food. It is a win for the many thousands of campaigners who have spent the last 14 months protesting, signing petitions, and engaging with MPs, and it happened because farmers, industry leaders and Conservative MPs worked together to force the Government to back down. However, the Government's forced change in direction does not go far enough. As President Gavin Lane from the Country Land and Business Association said, it merely limits the damage - it does not eradicate it. There are still many family farms that include enough expensive machinery to be valued above the amended threshold and this tax burden remains unaffordable for them.
The rational response by many family businesses will be to not employ extra person, or buy new equipment. This policy prevents investment and damages growth for the country. I, and my colleagues, will continue to call for the changes to APR and BRP to be axed entirely.
Any future reform of inheritance tax must carefully consider the impact on small and medium-sized farms, particularly those with diversified business models. In my view, policy must be guided by a clear understanding of how changes could affect genuine working farms, not just large estates or corporate holdings.
As the MP for North Bedfordshire, I will continue my work to support the farming sector both locally and in Parliament. I regularly meet with local farmers through initiatives like the North Bedfordshire Farmers' Forum to discuss the key issues affecting the farming community, and the next forum meeting will be held this month. Dates such as Back British Farming Day, are a good opportunity to highlight the vital contributions of British farmers, including their role in producing high-quality food, supporting the economy, and caring for the countryside.
Farmers understandably still feel betrayed. Ahead of the election, Government Ministers promised farmers that they would not change the tax regime on family farms. Many farms are already suffering from the Government's other harmful polices such as the increases to employers' National Insurance payments, the cuts to delinked payments, and the sudden closure of the Sustainable Farming Incentive last March.
I, and my colleagues in HM Opposition, will continue to speak up in Parliament for a fair tax system that respects and champions our British farmers and advocate for measures that support our British agricultural sector and heritage.
Thank you once again for taking the time to contact me.
Yours sincerely,
