Inheritance tax reforms ‘fair and balanced’, insists Zeichner
Defra farming minister Daniel Zeichner insists inheritance tax (IHT) changes to agricultural land will protect family farms by deterring Londoners “with a lot of money” from using land as a tax shelter.
In what he said was a “fair and balanced approach”, the minister suggested that the changes were in part a reaction to the concerns of farmers about competition for farmland.
See also: Farmers threaten strike action over inheritance tax hike
“What we are doing here is protecting the family farm,” he said in the House of Commons on Monday (4 November), in response to a question by the chairman of the Environment, Food and Rural Affairs (Efra) Select Committee, Alistair Carmichael.
“I have visited right around the country over the past five years, and on almost every visit, people have told me that they are concerned about people coming from outside – they often say ‘up London’ or ‘down London’ – with a lot of money and buying up local farmland over the heads of local people, not because they care about farming but to use that farmland for tax evasion purposes.’’
With the government under pressure to clear up confusion over how many farmers would be affected by its planned changes, he added: “I encourage people to reach for the detail – to look at the actual figures.
“The only thing we can go on is the claims, and the figures coming from the Treasury on claims for the last year available absolutely reflect that 73% figure.”
Mr Carmichael, the MP for Orkney and Shetland, raised an urgent question on the implications of the Budget for farming communities, questioning its compatibility with the government’s stated ambition to increase food security.
He said he was “disappointed” with Mr Zeichner’s response and urged the government to “press pause”.
Poll reveals opposition
Meanwhile, recent polling showed that 57% of people questioned thought the government was wrong to end the IHT exemption on agricultural land.
The poll was run by public opinion research body More in Common and involved 2,007 people.
When narrowed down to political views, 47% of Labour voters who took part in the poll stated that they were against the removal of the exemption.
James Wright, policy director of the Conservative Rural Forum, described the government’s proposal as a “war on the countryside”.
“Labour must reconsider this measure and prevent further harm to an essential part of our nation’s fabric,” he said.