Family Farm Tax

NFU Cambridgeshire warns family farm tax will force closures

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A Cambridgeshire farming leader has warned that a new family farm tax will force the closure of many farms.

Alison Morris, National Farmers Union (NFU) Cambridgeshire chair, has urged the government to reconsider its planned inheritance tax changes.

According to Ms Morris, these changes, outlined in the Finance Bill, threaten the future of numerous small and medium-sized family farms in the county.

Her concerns arise as the government plans to hold a technical consultation, including on inheritance tax, for the draft legislation.

The NFU has consistently argued that the current policy fails to close a loophole, protect family farms, or generate the expected revenue.

NFU Cambridgeshire Chair Alison Morris NFU Cambridgeshire Chair Alison Morris (Image: NFU) Ms Morris said: "The government's current proposals threaten the future of many small and medium-sized family farm businesses, including many in Cambridgeshire who have fed the nation for generations, and will severely damage the entire rural economy."

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She argues that the proposals unfairly penalise elderly farmers and jeopardise national food security.

The NFU's alternative 'clawback' solution, developed with tax experts, would raise significant income for the government, tackle tax avoidance, and protect the food security and rural economy, according to Ms Morris.

She added: "There is still time to avoid all of the damage that the current family farm tax would cause."

Prime Minister Sir Keir Starmer previously stated that he would consider strong representations against the tax.

Since the November 2024 budget, a large number of MPs from all parties, including those on the government's back benches, county councils, farming and business organisations, the food supply chain, and more than 250,000 members of the British public have joined the call to stop the family farm tax.

NFU president Tom Bradshaw said: "We cannot stand by and watch the backbone of the countryside be broken when there is a credible alternative being offered."


 

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