Farmers have urged Prime Minister Andy Burnham to scrap inheritance tax changes for agricultural businesses in the upcoming Budget, warning they are damaging investment and Britain’s food security.
The National Farmers’ Union said the decision to raise the tax-free threshold for farming assets from £1m to £2.5m had not gone far enough and called for farming assets to be passed on tax-free.
NFU president Tom Bradshaw said: “The Government can create every incentive it likes, but farmers will hold back if each new reservoir, building or piece of machinery adds to the bill their children might face.
"No farmer wants a lifetime’s work to become a burden for a family grieving their loss.”
The NFU is also seeking temporary interest-free loans for farmers affected by the summer drought and has warned that a forthcoming carbon tax could push fertiliser prices higher.