The Liberal Democrats say they have proof that the Treasury is reviewing Rachel Reeves’ hated Family Farms Tax, despite ministers’ insistence it is set in stone. A Freedom of Information request asking what analysis the Treasury has done on how the new tax will impact the economy, jobs and businesses saw the department insist “the legislation is not finalised” and that “provisions remain under review”.
This confession stands in stark contrast to the insistence given by newly-appointed farming minister Angela Eagle, who has said there is “no likelihood” of a change to the policy in the forthcoming November Budget. Last month Ms Eagle told the BBC: “I’m quashing [the rumours]. We have been in discussions. The Treasury have made their announcement and they are not going to move.” Her intervention came after reports that the Government is looking at ways to mitigate the impact of the hated tax on smaller estates and family farms.
Reacting to the FOI discovery, the Lib Dems’ economic spokesman Daisy Cooper told the Express that the mixed messages “just add insult to injury.”
“The family farm tax was a botched idea from the get-go, failing to close tax loopholes exploited by private equity companies whilst hammering genuine British family farms.
“Scores of family farms and other family businesses hang in the balance but now they discover that in the corridors of power, the left hand doesn’t know what the right hand is doing.
“Just a few days ago, the Food Security minister said that changes to the family farm tax were out of the question. But it seems the Treasury is telling a different story and was ready to pivot to the sensible choice and axe the tax.
“With less than a month until the next budget, the Chancellor must finally meet family farmers face to face and commit to axe this damaging and counter-productive tax.”
Mo Metcalf-Fisher of the Countryside Alliance added: “The family farm tax is causing complete misery across the countryside and souring the government’s relationship with rural communities. Given all the dire warnings and scale of opposition to this policy, they should urgently review it before it’s too late.”
Farmers have announced fresh plans to protest the tax ahead of Ms Reeves’ second Budget with a nationwide demonstration on November 24.
Go-slow convoys will take over the streets on a “Day of Unity”, with a spokesman saying they want to “raise awareness of the devastating impact the family farm tax will have on farm businesses and the wider rural economy. We want the protests to be peaceful and to resemble tractor charity runs”.
Farmer Gareth Wyn Jones said it’s not too late for Sir Keir Starmer to u-turn, adding: “I think it has been very, very disappointing for every farmer in the UK to see what he has done. The Government has come after us with inheritance tax on an already struggling industry. We have one per cent returns on our businesses.
“The money raised will be a pittance in comparison to the impact on the rural economy and food security, which is something we should be concerned about.”
