Family farms will go out of business because of the Government’s inheritance tax change and the country will have to rely on lower quality imported food in a volatile world, a Cheshire East farmer has warned.
Rob Brunt was one of two farmers who urged the council’s Economy and Growth Committee to oppose the Government’s planned new inheritance tax, (writes local democracy reporter Belinda Ryan).
Mr Brunt told last week’s meeting: “In a volatile world, it makes no sense to be reliant on imported food with much higher environmental costs and a higher carbon footprint.”
He said farming made a sizeable contribution to the rural economy.
“Looking at our own business in the month of February, for example, we received income from five businesses, whereas we paid out money to more than 35 different suppliers,” said Mr Brunt.
“The largest landowners, such as the National Trust and water companies, will never pay inheritance tax.
“The burden of the Government’s new inheritance tax is not being shared equally, but is targeting family farms and will put many of us out of business.
“This is devastating for British agriculture, and will lead to food shortages.”
Richard Yarwood, whose family have farmed in Brereton for 100 years, said: “Farmers are motivated by their ambition to pass on the farm to the next generation, better than they started.
“But the imposition of 20% inheritance above the threshold destroys all that when the average returns on assets are hardly one%.”
Alsager town councillor Sue Helliwell told the committee: “The inheritance tax will be forcing generations of farmers to sell their land.
“Is this really what our council wants? More solar panels, more housing and less locally produced and sourced food?”
Later in the meeting, when the committee was debating a notice of motion about protecting family farms, Coun Alison Heler said farming was a particular way of life and the plan was that it would be passed on to future generations.
“Since the notice of motion [which was presented to full council] on 11th December, I feel the world is even more insecure than it was, even more important we do have food security,” said the Haslington councillor.
She added: “Farms are already under a lot of pressure, environment issues, the increasing costs, and this is just another concern.
“Suicides in farming are not a small problem, and more pressure is not good for the farming community.”
But Macclesfield councillor Rob Vernon said the Government was not introducing a new tax.
“This is the removal of a tax break that the farming community has enjoyed for 41 years, that others are not afforded,” he said.
“In fact, it’s not the removal of a tax break, it’s only the relaxation and reduction of a tax break because farmers still will not pay the same levels of inheritance tax that everybody else does on their land.”
The committee noted the notice of motion.
