'Death knell' for almost 300 farms in North Shropshire – MP calls for inheritance tax U-turn
Almost 300 farms in North Shropshire could be hit by the Family Farm Tax according to an MP, who is calling on the government to scrap its decision to cut inheritance tax relief.
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Helen Morgan warned the move could ring the "death knell" for family farms in the region, and has launched a petition to ditch the tax after asking an Urgent Question to Defra minister Daniel Zeichner.
North Shropshire's Liberal Democrat MP said: “The Government must scrap this disastrous Family Farm Tax immediately or risk ringing the death knell for family farms in North Shropshire.
“This is the last thing that Shropshire farmers need, having spent years being forced to endure botched trade deals and cuts to their incomes due to shameful policies from the previous Government.
“If we are serious about food production and food security in this country, we cannot pursue anti-farming policies. We need to support the agricultural sector and back British farmers.
“The Chancellor should urgently reverse course, scrap the Family Farm Tax and take up the Liberal Democrat proposals to give farmers an additional £1 billion a year in support.
“I’m asking local farmers and everyone who supports the agricultural sector to sign a Scrap the Family Farm Tax petition, which I will be taking to the Chancellor to show the depth of public opposition in rural areas to this policy.”
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.
The Lib Dems suggest that if 27% of farms in North Shropshire were to be hit by these changes, 288 would be forced to pay the hike – putting it in the top 20 worst affected constituencies in England.
If that figure was reflected across Shropshire, Telford and Wrekin, 1,045 farms would be impacted.
Mrs Morgan said she has spoken to many local farmers who had hoped to pass their business onto their children, but now fear they will be forced to leave the industry.
She has launched the Scrap the Family Farm Tax petition, which she intends to take to Chancellor Rachel Reeves.
In her Urgent Question to the Defra minister, Mrs Morgan said: “One of the many emails I've received over the last week is from a farmer who has an archetypal family farm, 330 acres of mixed dairy and arable, that they're planning on to pass on to their son, even though they're struggling to make ends meet at the moment.
“He's typical of farmers in my constituency. He's very concerned and I'm afraid we haven't seen any investment in public transport or any of those other sweeteners that the Minister mentioned in his opening remarks. Can he explain what investment is going to go into rural public transport and why he has set the threshold for APR so low?”
Mr Zeichner replied: “I thank the Honourable Lady for her contribution. I think you have to wait a bit longer to see the transport improvement. It's only a week. But the point about the level is that has been set by the Treasury, based on the figures that we have, and trying to make sure it is fair. And as I say, the vast majority will not be paying anything, which I hope you will find reassuring.”