"Farmers' Fears: Government's 'Family Farm Tax' Threatens Rural Trust, Livelihoods and Labour's Future"

Strategic Insights -

A recent poll of 500 Country Land and Business Association (CLA) members has shed light on the devastating impact of the government's "family farm tax," a policy aimed at capping inheritance tax reliefs for farms and family businesses. The survey reveals that nearly 80% of respondents are worried their business will not survive the next decade, with over 60% considering selling their farm and leaving the industry. This alarming trend raises concerns about the long-term viability of rural communities and Labour's prospects in rural seats.

Key Takeaways:

  • More than 60% of CLA members have considered selling their farm and leaving the industry due to the government's "family farm tax."
  • Nearly 80% of respondents are worried their business will not survive the next ten years.
  • 69% of respondents said they will have to sell land or take out loans to keep their business.
  • 89% of respondents have paused or delayed investment since the budget.
  • 27% of respondents have held back from investing over £150,000 due to the policy.
  • 36% of respondents said they would vote for Reform, while 38% backed the Conservatives, with no respondent intending to vote for Labour.
  • The Treasury's impact assessment claimed the policy would have "no significant macroeconomic impacts" and "not be expected to impact the UK's ability to source imports from international markets."

Statistics:

  • 500 CLA members polled.
  • 80% of respondents worried about their business surviving the next decade.
  • 60% of respondents have considered selling their farm and leaving the industry.
  • 69% of respondents will have to sell land or take out loans to keep their business.
  • 89% of respondents have paused or delayed investment since the budget.
  • 27% of respondents have held back from investing over £150,000.
  • £1.9 billion estimated net fiscal loss for the Treasury.
  • £14.9 billion estimated wipe from the economy in lost business activity.
  • 200,000 jobs potentially lost during this Parliament.

Sources:

  • Country Land and Business Association (CLA) poll of 500 members.
  • Family Business UK and CBI-Economics study commissioned earlier this year.
  • Treasury's impact assessment of the changes, along with the draft legislation.
  • Victoria Vyvyan, President of the CLA.