Ed Davey warns inheritance tax change could create ‘lost generation’ of farmers

EMBARGO: Immediate Release

• Davey calls on the Chancellor to reverse changes made to farmers’ inheritance tax
• The party has raised the alarm over concerns of a ‘lost generation’ of farmers
• Around 70,000 farms will be impacted by the changes to the Agricultural Property Relief scheme
• Lib Dem analysis of the Autumn Budget points to a £70m cut to DEFRA’s food and farming budget

Liberal Democrat Leader Ed Davey has raised concerns over the Autumn Budget creating a ‘lost generation’ of farmers with a double hammer blow to rural communities. It comes as he visits an agricultural college in Maidenhead today with Lib Dem MP Joshua Reynolds.

Analysis by the party raised fears of a £70 million cut to DEFRA’s food and farming budget hidden in the fine print of the Chancellor’s plans, meaning even less government support for farmers who are already struggling after years of chaos and uncertainty caused by the Conservative Party.

In the Budget, the Chancellor also announced sweeping changes to the Agricultural Property Relief scheme which will impact around 70,000 farms. The LiberalDemocrats have raised serious concerns that the changes will force many to sell up small family-owned farms – with young people in rural communities across the country robbed of a future in farming as a result.

The Liberal Democrats have called on the Chancellor to reverse these changes to protect farmers and rural communities. The party said it has long been on the side of British farmers with a general election manifesto that offered an extra £1 billion a year in support to farmers who are the backbone of rural communities and underpin food security.

Commenting, Liberal Democrat Leader Ed Davey said:

“The Government is at risk of creating a lost generation of farmers. Young people will lose the opportunity to keep the farms their families have run for generations, while at the same time they are seeing government support for farming slashed.

“Hitting British farmers who put food on our tables only risks making the cost-of-living crisis worse. After years of being taken for granted by the Conservative Party, rural communities should have been properly supported in this Budget.

“The Chancellor now needs to listen to rural communities, reverse these measures and ensure the next generation of farmers is protected.

“Liberal Democrats backed British farmers by demanding an extra £1 billion to support them during the election, and we’ll keep being a strong voice for our rural communities.” 

ENDS

Notes to Editor:

Wednesday’s budget set out that DEFRA Resource DEL is being cut by 1.9% a year over 2 years (in real terms), which would translate to a £70 million cut to the annual food & farming budget, which totalled £1.92 billion in 2022-23 [Source: DEFRA Annual Report]

The Country Land and Business Association has estimated that approximately 70,000 family farms will be impacted by changes to the Agricultural Property Relief scheme. [Source: CLA]