With just over a week to go until the Chancellor's Autumn Budget is announced, the open letter to Sir Keir Starmer outlines how the unjust and unfair tax will impact thousands of working people running family farms.
Unless changed, it stands to have severe unintended consequences, such as farms being forced to sell off land and core business assets to fund significant and unexpected tax bills.
The letter also highlights how several solutions have been put forward by independent experts to mitigate the impact of the proposed changes on farming businesses, which will scupper their ability to deliver for employment, local communities and above all, national economic growth.
“I have never known such an outpouring of anger and frustration from all sectors of the farming industry and wider supply chain to this unjust policy.”
NFU President Tom Bradshaw
The independent UK-based research centre CenTax (Centre for the Analysis of Taxation) has argued that the policy needs changes to deliver the government’s intentions and has proposed a number of amendments.
Not too late to make changes
On the sending of the letter, NFU President Tom Bradshaw said: “Over the past 12 months, I have never known such an outpouring of anger and frustration from all sectors of the farming industry and wider supply chain to this unjust policy.
“It has been evident the Treasury does not understand farming and has remained intransigent in its position despite many calling for change. As we have repeatedly pointed out, the policy as it is, is anti-growth. It is stopping businesses and farms from investing and will leave many farming families forced to sell all or parts of their business to afford these horrendous future tax bills.
“There is such a strength of feeling as demonstrated by the 107 businesses, retailers and trade bodies from across the food and farming supply chain that have signed this letter to Sir Keir Starmer.
“Our message to the Prime Minister is clear. We are just a week out from the Budget; there is still time to do the right thing for British farming and rural businesses and consider the valid alternatives that have been proposed by the NFU and others. It is not too late to make changes which will raise the money the government needs while safeguarding the future of family farms.
“This is a pivotal moment. Getting this right will mean we can move forward and work together to regain some of the confidence that has drained away after months of relentless pressure. This government must back British farming for all it delivers for the nation and for the economic value it underpins in our largest manufacturing sector, British food and drink.”