Tax change ‘could cripple many family farms’

A Moray farmer who’s become a politician will lead a parliamentary debate at Holyrood tomorrow on the ‘family farm tax’. Changes announced in the UK budget earlier this month mean that inheritance tax will now be applied at a rate of 20 per cent on agricultural and business property assets worth over £1 million. Tim Eagle MSP, who lives near Buckie, says the government needs to “urgently U-turn” on its plans which, he claims, put the very existence of future food production “under serious threat”.

Mr Eagle, the shadow rural affairs secretary, said: “Labour’s Family Farm Tax is cruel and will have a devastating impact on farming across Scotland and the United Kingdom. “As a farmer myself, this is personal to me. We’ve heard directly from farmers that this could cripple many family farms.



It will mean that families will not be able to pass on their farm to the next generation. “If they do go ahead, then our future food security will be under serious threat. Without farmers, we do not have food.

” Seamus Logan, the MP for Aberdeenshire North and Moray East as well as the SNP’s Westminster spokesperson on rural affairs, is also urging a rethink on the budget proposals. He said: “It’s clear that there’s not only a great deal of anger at the announcement, particularly after the current Secretary of State at DEFRA had previously stated that there were no such plans, but also huge concern at what the proposals mean in practice.” Mr Logan, who met with a group of National Farmers Union of Scotland members on Monday, added: “We heard at the meeting from farmers who have already put on hold plans to invest in the future of their farming operations purely as a result of the budget.

“This proposal is causing uncertainty, insecurity and is already leading to investment being paused. I will continue in my efforts to force a rethink on the plans and urge farmers to make their voices heard on the matter.”.