n By Keith Hatch


The Country Land and Business Association claimed that 70,000 farms could be affected by the change. But when fact checked, Full Fact said, “The 70,000 figure is not comparable to the government’s 500 figure, as it represents the total number of farms that might potentially pay the tax in the future, rather than the number expected to pay on an annual basis.”


In a parliamentary debate on farming and inheritance tax, held on December 4, minister Daniel Zeichner MP recognised that a “huge range of figures and analysis have been quoted in the debate so far”.


But he said that the problem was they were about different things.


He said, “Only one set of figures actually gives guidance on this issue, and that is the Treasury figures showing that about 500 estates a year will be affected. That is based on the hard data of the actual claims. It includes the impact of APR but also takes into account business property relief.


“Those figures, of course, are endorsed by the independent Office for Budget Responsibility.”


Stutt & Parker’s Farmland Database shows the real problem. It reported that non-farmers bought up over half of the farms and estates sold in England throughout 2023. These non-farmers were a mix of private and institutional investors, who tended to buy bigger farms and larger areas of land.


It also reported that the value of farmland reached record levels in 2023, with “the average arable price for 2023 was £11,200/acre, which was up 3 per cent on 2022 levels and up 22 per cent in five years”. In some areas this could reach up to £20,000/ acre.


Changes to inheritance tax are effectively closing a tax loophole for non-farmers and could actually make buying farmland as an investment less attractive to those not interested in producing food, lowering the price of land and allowing more people to enter farming.


John said a big problem has been “that land prices have driven up rents, and land prices have been driven up because it is a tax hedge for very wealthy people”.


Above: Homeland? Far right get into protest; Below: Lighter side – Farmer with ferret joins in too


“Actual farming is the crucial thing, having access to the land. So many people are being stopped from farming because of high rents. Land prices are ridiculously high and have nothing related to the return that you get from farming it. That is what really needs to be addressed.”


The real problems that farmers and rural workers have been facing is the legacy of the last Conservative government, which did little to help working people in the countryside.


During the Parliamentary debate Daniel Zeichner said, “Let us be honest; last month’s protests were not just about APR. Rural communities have felt ignored and let down by this place after decades of failure.


“The Conservatives sold out British farmers in trade deals with New Zealand and Australia. They left farmers facing spiralling energy bills because they refused to invest in cheaper home-grown British power – a decision that sent fertiliser and animal feed costs soaring.


“Rural communities are rightly feeling ignored and left behind. This government will not accept that. These reforms will disincentivise the wealthy from buying up agricultural land to shield their wealth from inheritance tax, and they will also raise the money needed to fix those public services.”


John said that there are ways for older farmers who are still farming the land


17 uniteLANDWORKER Winter 2024 ‘‘


The actual incomes that people make from farming, which are really marginal...is what people should be protesting about


John Burbidge, Unite Tolpuddle branch chair


to ensure the next generation don’t pay the tax, such as making a “full agricultural tenancy for their children. This devalues the farm quite significantly.


“Unfortunately the government hasn’t addressed the fact that really big landowners have got the land in trust and they completely avoid inheritance tax because of the trust.”


John said that all farmers should talk to their accountants before worrying about the impact on their farm after they pass on.


John said the real issue for people farming the land is “the actual incomes that people make from farming, which are really marginal. This is what people should be protesting about.”


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All photos: Alamy


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