Badenoch attacks Labour’s ‘family farms tax’ on farm visit

Conservative party leader Kemi Badenoch has launched a fierce attack on Labour’s proposed changes to inheritance tax (IHT) on farms, warning the policy could severely damage the future of family farming in the UK.

Ms Badenoch said the plans would devastate generational farming by forcing families to sell off land and assets just to meet tax bills, undermining the long-term viability of rural businesses.

Speaking to the Farmers Weekly podcast during a visit to Sam Goddard’s farm in her North West Essex constituency on Tuesday – where she met farmers and had a go at driving a combine harvester – Ms Badenoch accused Labour of being “out of touch” with rural communities.

See also: UK Treasury dismisses threat to food security from IHT plans

Conservative Party leader Kemi Badenoch talks with farmer Sam Goddard © Christine Quarmyne CCHQ

Echoing the NFU’s stance, she labelled the IHT proposal a “family farms tax” and criticised Labour’s lack of understanding of the sector.

“Most Labour MPs are urban, metropolitan types.

“They just don’t get rural communities. We do,” she said, promising that the Conservatives would “scrap this tax” if returned to government.

Ms Badenoch also called on farmers, supply chains and rural residents to raise awareness of the threat posed by the tax.

“A lot of people think farmers are wealthy, but most have high-value assets with very little income,” she said.

“If you start taxing them at this rate, you force them to sell their assets, which means they can’t make any money.”

Although currently in opposition, she said the Conservatives were forcing parliamentary votes on the issue to hold Labour accountable and expose its impact on rural voters.

“We will scrap this. We will scrap this tax,” she reiterated.

Her comments come amid growing discontent among farmers and agricultural groups, many of whom fear Labour’s proposed IHT changes could lead to the break-up of family farms and long-term decline in the sector.

Mr Goddard said: “Labour’s farm IHT policy could potentially be catastrophic to our business over one or two generations.

“It needs reversing. It’s doing damage to the industry already.”

Tune in to the Farmers Weekly podcast on Friday 8 August to listen to the full interview with Kemi Badenoch.