Controversial reforms to inheritance tax are the “single greatest subject” dealing with farmers, based on a long-awaited report into the profitability of the sector.
The Farming Profitability Overview – authored by Baroness Minette Batters, former head of the Nationwide Farmers’ Union – says the trade is “bewildered and frightened” of what may lie forward.
The publication of the government-commissioned evaluate had been delayed, with some claiming it was shelved until after the chancellor’s funds final month, to keep away from scrutiny.
The report makes 57 suggestions on how the federal government can enhance profitability – with Baroness Batters saying farmers are dealing with “enormous financial challenges”.
Baroness Minette Batters
However it stops wanting providing various proposals to inheritance tax reforms (IHT), with Baroness Batters saying that was outdoors the phrases of reference set.
The modifications – as a consequence of come into power subsequent April – will see farms with property of greater than £1m pay 20% tax. Beforehand farms had been exempt.
The reforms have led to 1000’s of farmers protesting in London over the past 12 months, with many saying the IHT funds will make many smaller farms now not viable.
“Almost all of the responses to this evaluate have cited inheritance tax as the one greatest subject concerning farming viability that they face. The farming sector is bewildered and scared of what may lie forward,” mentioned Baroness Batters.
She added that the “core focus” of her suggestions is to “restore stability between meals manufacturing and the setting”.
The report highlights the threats of local weather change to farming, which accounts for 70% of UK whole land.
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Suggestions additionally embody rising ‘Model Britain’ by way of elevated exports and grocery store gross sales – and making certain higher monitoring of provide chain equity.
Reacting to the report, the Division for Atmosphere, Meals & Rural Affairs introduced a brand new board to convey collectively senior leaders from farming, meals manufacturing, retail, finance and authorities to strengthen UK meals manufacturing.
Atmosphere Secretary Emma Reynolds. Pic: PA
Atmosphere Secretary Emma Reynolds mentioned: “When farming thrives, the entire nation advantages. British farmers are central to our meals safety, our rural financial system and the stewardship of our countryside.
“Baroness Batters’ evaluate underlines the necessity for presidency, farming and the meals trade to work rather more carefully collectively. That’s precisely what the brand new Farming and Meals Partnership Board will do.”
Baroness Minette Batters mentioned: “I am happy that the Secretary of State recognises the necessity to set up a brand new strategy to rising the British model at residence and overseas by producing, creating and promoting extra from our farms in a measurable manner.
“With ever extra excessive climate, the horrific, ongoing struggle in Ukraine and 69.7 million individuals within the UK now’s the time to ship meals safety as nationwide safety.”
The federal government will set out its full response in a brand new 25-year Farming Roadmap, due for publication subsequent 12 months.
