Many farmers ‘wrong’ about inheritance tax change, Environment Secretary says

Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Sign up to our free Morning Headlines email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Many farmers protesting over changes to inheritance tax are “wrong” about the policy, the Environment Secretary has said. “We’ve gone further than that as well, £60 million to help farmers affected by flooding, we’re going to cut farmers’ energy bills by setting up GB Energy, we’re going to seek a new trade deal with the European Union so we can get food exports moving across the border again and we’re launching the first-ever cross-government rural crime strategy.” Under the plans, full inheritance tax relief will be restricted to the first £1 million of combined agricultural and business property relief, above which landowners will pay a rate of 20%, compared with 40% on other estates. The question of whether farmers or farming activities should be supported in some other way instead does not alter the case against these unfair and distortionary reliefs David Sturrock, senior research economist at the IFS Speaking to journalists in Westminster, National Farmers’ Union president Tom Bradshaw said: “The longer they leave this hanging, the more I start to think it’s vindictive, rather than miscalculated.” But ministers have argued the revenue is needed to help fix public services and plug a £22 billion fiscal “black hole” left behind by their Tory predecessors which they say only became apparent after they entered government. “Inheritance tax relief for agricultural and business assets provides a tax incentive for wealth to be held in these forms and for land to be used for agricultural purposes by those who want to pass on wealth to their heirs.” Mr Sturrock said that if the Government wanted to boost agricultural production it could do so by explicitly targeting support towards certain activities, which would be “fairer”.