UK Minister Defends Inheritance Tax Plan, Urges Farmers to Stay Calm
Source: DairyNews.today
The UK’s farming minister has urged farmers to “look calmly” at the government’s new inheritance tax proposals, asserting that “the vast majority will be fine” despite widespread backlash from the agricultural sector.
Daniel Zeichner, MP for Cambridge, made the remarks as hundreds of farmers prepared to protest in London against the policy announced in last month’s Budget. The plan would impose a 20% inheritance tax on farmland worth more than £1 million starting in April 2026—a reduction from the standard 40% inheritance tax rate.
Zeichner defended the measure as necessary, dismissing claims from the National Farmers Union (NFU) and other industry groups that thousands of farming families would face significant financial strain. “The figures from the Treasury are clear: fewer than 500 farms a year are likely to be affected,” Zeichner said. He encouraged farmers to seek advice, emphasizing that individual circumstances, such as property ownership and early land transfers, could mitigate tax liabilities.
Industry Backlash and Farmer Concerns
The NFU has called the policy a “fundamental miscalculation,” arguing it demonstrates a lack of understanding of the farming sector’s unique financial structures. Many farmers have expressed alarm, warning that the tax burden could destabilize family-run operations.
Simon Dann, a Norfolk farmer managing 680 acres and multiple businesses, described the plan as a “kick in the teeth” for an industry already under pressure from fluctuating milk prices, labor shortages, and Brexit-related challenges. “This creates a potentially large tax burden that the average farm may not be able to meet,” Dann said.
Minister Stands Firm on Policy
Zeichner acknowledged the sector’s frustrations but ruled out withdrawing the tax, attributing the decision to fiscal challenges inherited from the previous government. He highlighted increases in the farming and food production budget as a sign of continued support for the industry.
“We absolutely get it,” Zeichner said. “I am prepared to look farmers in the eye and assure them we will support them through this difficult transitional period.”
Farmers are expected to continue pressuring the government to reconsider the measure as the April 2026 implementation date approaches.
Zeichner defended the measure as necessary, dismissing claims from the National Farmers Union (NFU) and other industry groups that thousands of farming families would face significant financial strain. “The figures from the Treasury are clear: fewer than 500 farms a year are likely to be affected,” Zeichner said. He encouraged farmers to seek advice, emphasizing that individual circumstances, such as property ownership and early land transfers, could mitigate tax liabilities.
Industry Backlash and Farmer Concerns
The NFU has called the policy a “fundamental miscalculation,” arguing it demonstrates a lack of understanding of the farming sector’s unique financial structures. Many farmers have expressed alarm, warning that the tax burden could destabilize family-run operations.
Simon Dann, a Norfolk farmer managing 680 acres and multiple businesses, described the plan as a “kick in the teeth” for an industry already under pressure from fluctuating milk prices, labor shortages, and Brexit-related challenges. “This creates a potentially large tax burden that the average farm may not be able to meet,” Dann said.
Minister Stands Firm on Policy
Zeichner acknowledged the sector’s frustrations but ruled out withdrawing the tax, attributing the decision to fiscal challenges inherited from the previous government. He highlighted increases in the farming and food production budget as a sign of continued support for the industry.
“We absolutely get it,” Zeichner said. “I am prepared to look farmers in the eye and assure them we will support them through this difficult transitional period.”
Farmers are expected to continue pressuring the government to reconsider the measure as the April 2026 implementation date approaches.
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