Yesterday, central London was full of British farmers. Far more than was anticipated. It’s a countryside revolt. Or at least the seed corn of unrest. It needs to be addressed quickly.
The UK Government Budget sprung an unexpected shock on farmers. Newly elected, everyone expected them to try to correct the spending mess left by their predecessors. However, few expected them to make-up last minute figures to do something they said they wouldn’t do.
Lots of family farmers could be singing the classic Beatles song “Yesterday”. Troubles seemed so far away before the general election. Now, they seem here to stay.
Like androids, and the Tories before them, Labour Members of Parliament (MPs) are trotting out lines prepared for them by their masters. The political excuse trotted out robotically is that the theoretical threshold for taxation is £3 million and not £1 million as everyone is saying. Therefore, they say, fewer farm businesses will be impacted by their new death tax.
When something goes wrong in Government one of the best strategies is to address the facts immediately, apologies for any error, take the temporary hit and move on quickly. Stonewalling and wibbling is an extremely poor approach.
For a start, many farmers will not be able to take-up the tax reliefs Labour MPs are talking about. Farming is a hazardous profession. Sadly, unexpected deaths are not unusual. If such an event occurs this could then result in compounded tragedy, that is the death of a family business too.
Farmers are pointing out that significantly wealthy people will still use land purchase to avoid tax. They will have complex and detailed tax planning services at their fingertips.
Agricultural land values have increased dramatically in recent decades. Yes, there is an issue to be addressed with respect to land value. Housing development land is an astronomical price. It’s one of the drivers that is making house prices unaffordable for many people.
Labour needs to recognise that it’s not food producers who are driving these negative phenomena. It’s not small and medium sized family farms who are the problem makers.
Not only is this new inheritance tax very poor politics by Labour, but it’s also not going to crack the problem that they might wisely wish to crack. I’d say, think again. At least consult.
John Vincent 