A group of influential representatives urged the government to delay the controversial Planned changes to the inheritance tax for farmers “To allow better formulation of tax policy” and protect the weak farmers by giving them more time to seek advice.
The Environment, Food and Rural Affairs Committee (EFR) has called on the government to stop announcing its reform to relief agricultural real estate and relief commercial real estate until October 2026, before pushing it into effect from April 2027.
The report said that such a step “will allow better formulation of tax policy and provide the government with an opportunity to transfer a long -term positive vision for agriculture.” They added that the planned changes “threaten to influence the most at risk” and that a temporary stop will give them “more time to search for appropriate professional advice” while allowing government time to consider other options.
Chancellor, Rachel Reeves, caused a stir between many agricultural sector in October when She announced her plans in her budget To bring farms and other agricultural properties to the rules of inheritance tax, in order to collect funds for public services and close a tax loophole exploited by some wealthy land owners.
End of decades -long exemption for farms, Reeves plans To make heredity pay 20 % Of the value of agricultural and commercial property that exceeds one million pounds The protests ignited widely In recent months and has led to the speeches of ministers It is drowned by pods.
Representatives on the cross -cross committee raised concerns that the changes announced in the budget have been made adequate consultation, assessment of the impact, or assessment of the ability to withstand costs, with the risk of producing unintended consequences.
Despite its widespread support for the tax changes of inheritance in the government, the committee calls on ministers to consult with their proposals Avoid hurting small family farms.
Alexa Carmeichel, Chairman of the EFRA committee and liberal Democrat The sudden closure of the post -Britain -European Union Support Support schemeSustainable agricultural incentive.
“The way the government has acted in recent months has negatively affected the confidence and welfare of farmers,” Carmeichel said.
“We have seen that DEFRA’s contacts with farmers were poor, with a correspondent and sometimes contradictory. There was a lack of adequate consultation. Policies that affect farmers have been announced without consideration or explaining their influence or basis.”
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He urged the government to adopt the committee’s recommendations, saying that the ministers have an opportunity to rebuild confidence and confidence in the agricultural sector.
He said: “Farmers must be the primary element in the government’s plans to achieve food security, restore and protect the environment.”
