More than 100 businesses and organisations from across the food and farming supply chain, including the NFU and NPA, have written to the Prime Minister ahead of the Budget, urging him to rethink the ‘family farm tax’.
With a week to go until the Budget, the open letter to Sir Keir Starmer outlines how the ‘unjust and unfair tax’ will impact thousands of working people running family farms. Unless changed, it stands to have ‘severe unintended consequences’, such as farms being forced to sell off land and core business assets to fund significant and unexpected tax bills, the organisations warn.
The letter also highlights how several solutions have been put forward by independent experts to mitigate the impact of the proposed changes on farming businesses, which include hampering their ability to deliver for employment, local communities and above all, national economic growth.
For example, the independent UK-based research centre CenTax has argued that the policy needs changes to deliver the government’s intentions and has proposed a number of amendments. Read report here.
The 107 signatories include the UK farming unions, various other trade bodies, including the NPA and Tenant Farmers Association, and retailers Aldi, Asda, The Co-operative, Lidl, Ocado Retail, Morrisons, Marks & Spencer and Waitrose.
You can read the letter and full list of signatories HERE.
Outpouring of anger
NFU President Tom Bradshaw said: “Over the past 12 months, I have never known such an outpouring of anger and frustration from all sectors of the farming industry and wider supply chain to this unjust policy.
“It has been evident the Treasury does not understand farming and has remained intransigent in its position despite many calling for change.
“As we have repeatedly pointed out, the policy as it is, is anti-growth. It is stopping businesses and farms from investing and will leave many farming families forced to sell all or parts of their business to afford these horrendous future tax bills.
“There is such a strength of feeling as demonstrated by 107 businesses, retailers and trade bodies from across the food and farming supply chain that have signed this letter to Sir Keir Starmer.
“Our message to the Prime Minister is clear. We are just a week out from the Budget; there is still time to do the right thing for British farming and rural businesses and consider the valid alternatives that have been proposed by the NFU and others. It is not too late to make changes which will raise the money the government needs while safeguarding the future of family farms.”