Under the chancellor’s plan, a 20 per cent inheritance tax rate will be introduced on farms worth more than £1m - a move farming leaders claim will lead to the closure of many family farms as they urge the government to rethink the policy.
Last month a government spokesperson said: “Our reform to Agricultural and Business Property Relief will mean estates will pay a reduced effective inheritance tax rate of 20 per cent, rather than standard 40 per cent, and payments can be spread over 10 years, interest-free.
Frome Livestock Market’s managing director Bradley Towel said: “Whatever people think about inheritance tax, ultimately, the direction of travel is away from protecting family farms, which are now, frankly, being run by the older generation.
She said she would welcome negotiations with Labour ministers, and warned if Ms Reeves did not rethink her plan she would be “directly blamed” for any farmer suicides, adding the chancellor’s post and the party’s position in government were under threat over the policy.
Ms Webster said the change in inheritance tax rules compounded growing pressures faced by farmers such as increased costs, uncertainty over a trade deal with America and a rise in national insurance for employees.
