Controversial Family Farm Tax ‘will not threaten future generations of farmers in High Peak’ MP claims
MPs were asked to back down on the controversial inheritance tax plans during a debate in parliament last week but hundreds voted against that motion including High Peak MP Jon Pearce.
At the moment, farmland is exempt from inheritance tax under a policy called Agricultural Property Relief (APR).
In the budget, the Chancellor announced she will end that exemption by restricting APR.
The cut will mean that from April 2026, a 20 per cent tax will apply to agricultural assets over £1 million.
Last week the non-binding Conservative motion against the family farm tax was voted down by 339 votes to 181.
The National Farmers’ Union suggests three quarters of farms nationally will be affected by the reduction of agricultural property relief.
Defending his vote Mr Pearce said: “The Chancellor in her budget delivered £5 billion for the farming budget, the largest ever investment in sustainable food production and nature recovery in Britain’s history.
“But it’s time there was a bit of honesty in politics.
“The money for that farming budget has to come from somewhere.
“We are asking those with the broadest shoulders to pay more.
“Only four per cent of the very wealthiest estates pay any inheritance tax and these changes will not alter that.”
He said: “What this debate has highlighted is farmers are working themselves into the ground for very little profit.
“This needs to change for food production to be sustainable in Britain.”
However, former High Peak MP Robert Largan has called out Mr Pearce following his vote after the election hustings.
He said: “Mr Pearce, fiercely denied this would happen and accused me of ‘scaremongering’.
“He was absolutely adamant Labour had no plans for a Family Farm Tax.
“Mr Pearce voted to introduce the Family Farm Tax.
“He gave a passionate speech in favour of the same tax he told farmers would not happen under Labour.”
In response Mr Peace said: “If I thought for one second these changes to agricultural property relief threatened future generations of farmers in High Peak, I would not vote for them, but I don’t.”
“There is no doubt farmers in High Peak have been struggling for the past 14 years, working seven days a week for very little reward.
“Over 12,000 farmers and agricultural businesses were lost under the Conservatives, many of them in High Peak.
“I sat down with farmers in High Peak before the budget.
“They wanted to talk about two things: concerns about the effect of changes to Agricultural Property Relief and on family farms, and the need to protect the farming budget.”
Mr Pearce explained tax thresholds on agricultural land values are not market values and typically 20 per cent lower and any debts would need to be deducted and the seven year gifting rule will continue to apply and any tax due will be payable interest free over a ten year period.
He said: “With a bit of estate planning and possibly some insurance, these changes to inheritance tax will not threaten future generations of farmers in High Peak.”
Mr Largan, who is sharing a petition to stop the family tax, added: “There is still time for Labour to think again and cancel this deeply damaging tax on family farms.
“Let’s hope they listen and do the right thing.”
What do you think about the Family Farm Tax? Email your views to [email protected]