Table of Contents
- Family Farm Closures
- Official Statistics
- Impact of the Inheritance Tax U-Turn
- Expert Opinions
- Conclusion
THOUSANDS of family farms have closed in the lead-up to Labour’s reversal on inheritance tax.
Official data reveals that over 6,200 farms shut down after the announcement of the plan last year.
A significant number of family farms closed in the lead-up to Labour’s reversal on inheritance taxCredit: Alamy
Farmer advocate Jeremy Clarkson has campaigned for relief for farmersCredit: Amazon
The Office for National Statistics reports that this figure, covering the 12 months up to October, is the highest recorded since data collection began in 2017.
The threshold was raised from £1 million to £2.5 million following a campaign led by TV farmer and Sun columnist.
However, experts caution that irreversible damage has already occurred.
David Exwood, from the National Farmers' Union, stated: “The number of closures highlights the challenges and lack of confidence in the sector.”
“Cash flow pressures, extreme weather, global volatility, and uncertainty surrounding environmental schemes have all complicated matters.”
The shadow environment secretary expressed appreciation for the U-turn but noted it came with significant economic and personal repercussions.
She remarked: “And that will not be forgotten, I suspect.”
Clive Bailye, a farmer from [location], commented: “Since the 2024 Budget, a significant dark cloud has loomed over the industry, removing the motivation to continue.”
Chancellor Rachel Reeves announced a plan to tax family farms during last year’s BudgetCredit: Reuters
Frequently Asked Questions
What led to the closure of so many family farms?
The closures were primarily due to the announcement of Labour's inheritance tax policy, which created uncertainty and diminished confidence in the farming industry.
What is the current status of the inheritance tax policy?
The inheritance tax threshold was raised from £1 million to £2.5 million, but experts warn that the damage to the industry has already been done.
Eze Chidiebere Paul
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