Honiton & Sidmouth MP urges Government to scrap “ruinous” family farm tax, ahead of vote

The call by Richard Foord MP, comes ahead of a vote on the Finance Bill on Tuesday 16th December, which will serve to implement measures contained in the Government’s budget.

Mr Foord has been a long-standing, outspoken critic of plans to limit tax relief on family farms, first speaking out against rumoured changes before the measure was announced in last year’s autumn budget.

Richard Foord is once again calling on the Government to scrap their plans. He says many farmers in Devon would not be able to pay this new inheritance tax without shrinking their farms, or worse, selling-up altogether, at a time when the farm should be passed from one generation to the next.

Next week, MPs will vote on the Finance (no. 2) Bill, which contains the inheritance tax measure on family farms at its second reading, prior to the legislation being scrutinised by a committee of MPs.

Mr Foord said: “Next week’s vote represents a key stage in the introduction of this ruinous measure in Parliament. My Liberal Democrat colleagues and I will oppose this to the bitter end.

“Many farmers already earn less than the minimum wage. Changes to inheritance tax will mean that tracts of land or even whole farms are sold to larger organisations, devastating local communities. The family farm tax would be disastrous to family farms in East and Mid-Devon.”

In June, the Office for Budget Responsibility said that the Government's changes to agricultural property relief will have little effect on public finances. 

Instead, the OBR said the proposals would have an impact on farming communities. These communities are already struggling with declining incomes, high energy bills and trade deals that have traded-off agriculture for other sectors of the economy.

Mr Foord concluded: “The Liberal Democrats will continue to urge the Government to change course, and scrap the family farm tax.”