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Farmers

Durham County Council Unanimously Supports Family Farms in Face of Government Policy Changes

Strategic Insights

— 2 min read

Durham County Council made a clear statement of support for local farmers and the NFU's Stop the Family Farm Tax campaign at a council meeting in March. The motion, which saw all 95 councillors from various political parties stand in support of local farmers, raised concerns over the future of the industry. NFU members had a productive meeting with councillors to discuss food production challenges and the proposed changes to government policies that will affect family farms.

Key Takeaways:

  • Durham County Council unanimously voted in support of county farmers and the NFU's Stop the Family Farm Tax campaign at a council meeting held in March.
  • The motion saw all 95 councillors from all political parties stand up for local farmers and raise concerns over the future of the industry.
  • The proposed changes to Inheritance Tax, which will reform Agricultural Property Relief and Business Property Relief from April 2026, will have a devastating impact on so many family farms in Durham, according to the NFU.
  • The Treasury claims that 27% of farmers will be affected by the tax changes, but analysis from former Treasury and Office for Budget Responsibility (OBR) economists reveal that 75% of commercial family farms will be hit.
  • A cross-party committee of MPs has highlighted that the changes leave elderly farmers horribly exposed, with no time to manage their way through the new policy.
  • The NFU has put forward an alternative clawback proposal that meets the government's money-raising objectives while avoiding tearing apart family farms and protecting elderly farmers.
  • The proposal allows 100% relief on qualifying assets, but charges inheritance tax on all those assets if subsequently sold by the beneficiary within a suggested timeframe of seven years.
  • Other issues discussed at the meeting included proposed concerns over the future of the Sustainable Farming Incentive (SFI) and the government's flagship support scheme for environmentally friendly farming.
  • NFU members discussed having a food and farming plan for the county which was pleasing to hear and the support to encourage people to buy local, support planning policies and rural growth by working together.

Statistics:

  • 95 councillors from all political parties supported the motion for Durham County farmers.
  • 27% of farmers will be affected by the tax changes according to the Treasury.
  • 75% of commercial family farms will be hit by the tax changes, according to analysis from former Treasury and Office for Budget Responsibility economists.
  • 100% relief will be allowed on qualifying assets under the NFU's alternative clawback proposal.
  • A suggested timeframe of seven years will be considered for selling qualifying assets to charge inheritance tax.

Sources:

  • NFU (no date)
  • NFU members (no date)
  • Durham County Council (March 2023)
  • Office for Budget Responsibility (no date)
  • Cross-party committee of MPs (no date)

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