Bradshaw warns IHT threatens Defra’s farming growth goals

NFU president Tom Bradshaw has warned that the government’s plans for farm inheritance tax (IHT) threaten the future of UK family farms, claiming it would “suck the oxygen” out of any ambitions for growth.

In his closing remarks to the NFU Conference, Mr Bradshaw highlighted the conflict between Defra secretary Steve Reed’s vision for a profitable farming sector and the looming tax burden.

“It’s impossible to look on with any optimism when we’re worried sick about our parents, our businesses and our children’s future,” Mr Bradshaw said.

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“The government talks about growth, but with the Treasury looming overhead, waiting to seize our legacy, what incentive is there for farmers to grow and invest in their businesses?”

Tuesday’s conference at the QEII Centre in London was attended by more than 700 NFU members. A show of hands revealed that only two attendees felt confident in their ability to invest in their businesses, emphasising the potential devastation of the “family farm tax”.

Mr Bradshaw said that while the NFU had secured “wins” on issues such as seasonal workers and Higher Level Stewardship (HLS) payment rates, the looming IHT threat remained a major challenge.

“In peace time, there’s a lot of life, but this tax issue is sucking the oxygen out of the room,” he said.

The NFU president stressed the link between the IHT policy and UK food security, urging the government to consider the broader geopolitical impact. “We need to expand our message on IHT and its effect on future food security,” he said.

Future lobbying

Mr Bradshaw urged the NFU to increase its lobbying efforts to target more MPs, especially Labour MPs, through the spring and summer.

“We have to increase our lobbying so that we get to even more MPs… to make sure that more of those Labour MPs have the ability to speak out, either behind closed doors or in public, about how they feel about inheritance tax proposals,” he said.

But he added: “Realistically, the key moment may well come in the Autumn Budget… They are the key moments we have to target moving forward.”

Despite the challenges, Mr Bradshaw remains optimistic, stressing farming’s resilience. “We’re in a marathon, not a sprint,” he said, citing spring’s hard work and hope.

Mr Reed was asked by Farmers Weekly if he was already failing in his farming growth agenda, and said: “No. We inherited this [situation] from the previous government, a farming sector that was unprofitable.

“What I’m focused on is making that sector profitable, with profitable businesses that attract investment. That’s where we’re going.”