Farmers ‘left sleepless’ over family farm tax, says Connon
Andrew Connon © MAG/Philip Case NFU Scotland president Andrew Connon has launched a blistering attack on the UK government’s proposed reforms to inheritance tax (IHT), warning they will “dismantle family farms” and cause “long-term harm to the rural economy and food production”.
Speaking at NFU Scotland’s autumn conference in Edinburgh on Thursday (23 October), Mr Connon said the proposed changes to agricultural and business property relief had become the “number one issue” for members since last October, describing the plans as “callous, ill-thought, and “misguided”.
See also: Eagle quashes rumours of ‘family farm tax’ reprieve
He warned: “These changes risk the break-up of family farms and the dismantling of their businesses.
“To penalise responsible succession and investment will do long-term harm to the rural economy and food production.”
Mr Connon said his first weeks as president had included multiple trips to Westminster, on one occasion addressing 10,000 farmers from the top of a combine harvester at a rally in Whitehall.
He described the rally on 4 March as “an incredibly emotional experience”, recalling being congratulated after his speech by an 89-year-old Aberdeenshire farmer who told him: “Oh well, Andrew, well done. I suppose I will just have to die before next April.”
Reflecting on the elderly farmer’s comments, Mr Connon told delegates: “Sadly, this thought process is going on across the UK. Anxiety, stress, sleepless nights for many – and yet so avoidable.”
He vowed to keep pressing for the proposals to be “withdrawn or amended” as the Finance Bill moves forward after the Autumn Budget on 26 November.
Scotland hit ‘disproportionately’
Scotland’s rural affairs secretary Mairi Gougeon backed Mr Connon’s call for a rethink.
She said the proposed reforms would hurt Scotland “disproportionately” because it has many farmers on “old-style” Agricultural Holdings Act 1991 tenancies – which are long-term, often lifelong tenancy agreements – that would be especially affected.
Ms Gougeon also revealed that the regular interministerial government meetings had “fallen by the wayside” for seven months, but hoped relations could “start to rebuild and improve” after the appointment of new Defra ministers.
The next meeting is set to take place next month, and Ms Gougeon said she expects IHT to be on the agenda.
From April 2026, as things stand, inherited agricultural assets worth £1m or more will be taxed at 20%.
Westminster Hall debate to pressure government
Northern Ireland MP and DUP rural affairs spokeswoman for the DUP Carla Lockhart has secured a Westminster Hall debate on the “Impact of Agricultural Property Relief and Business Property Relief on family farms in Northern Ireland”, next Tuesday (28 October) at 11.00am.
The MP for Upper Bann said: “The debate will provide a platform as we continue to raise the alarm on this issue.
“There is mounting distaste and opposition to the proposed inheritance tax changes, some of which is coming from within the ranks of the Labour party. The pressure is on the government to reconsider and retract on this controversial policy.”