Hundreds of farms across mid and east Devon could be hit by new “family farm tax"

LAST week in parliament, local MP, Richard Foord, spoke against a new “family farm tax” that the Government says could affect more than 250 farms across mid and east Devon.

Richard Foord MP represents Honiton & Sidmouth – a rural constituency that has almost 1000 farms (978 holdings).

Ministers have said that 27 per cent of farms will be affected by the changes, which would cut the level of inheritance tax relief for farmers.

But the Country and Land Association says the number affected could be higher - in the region of 70,000 farms across the UK, many of which are in Devon.

It’s a move that Mr Foord believes will make farmers lives tougher, with a risk that many will need to sell machinery, land or livestock in order to pay the necessary new taxes, meaning the shrinking of family farms over time to such a size as to make them not viable.

Hundreds of farms across the Honiton & Sidmouth constituency could be hit

According to Government figures, around 264 farms in the Honiton & Sidmouth constituency are set to be hit with the new tax.

Mr Foord, who observes that farm businesses are often asset-rich but cash-poor, is now calling on the Government to scrap the new tax.

He said: “The Government must urgently think again on the “family farm tax.” I am very concerned for the future of our local farmers, many of whom are struggling to make ends meet as it is. This follows the last Government’s disastrous record on botched trade deals, resulting in cuts to farmers’ incomes.

Farmers need solid support from the Government to ease the transition to nature-friendly practices and food security

“I am also worried that the tax could inadvertently worsen the biodiversity crisis and damage our food security. Money is being spent on supporting farmers to adopt sustainable practices, such as reducing pesticide use, planting hedgerows and managing soil to reduce erosion and pollution - and secure the very future of food production on those farms.

“To achieve these things, farmers need solid and long-term support from government.

“The decline in nature is predicted to result in a 12% loss of UK GDP in the coming years. Climate change and nature loss are two of the greatest threats posed to the UK’s food security; the Liberal Democrats propose that farmers should receive an additional £1 billion a year in support to aid the transition.

“The Chancellor should urgently reverse course, scrap the family farm tax and take up Liberal Democrat proposals.”