Agenda item

Cross-Party Support for Local Farmers and Protection Against the Impact of Recent Budget Changes

In accordance with the Rule No. 3.4.3, Councillor J. Lee will move and Councillor P. Farmer will second a motion to the following effect:

Context:

Following the recent Budget announcement by Chancellor Rachel Reeves MP, significant changes to inheritance tax have been introduced that directly impacts our district’s farming community. Changes, to cap agricultural property relief at £1 million for farms, are a threat to the viability of small to medium sized farms in our district.

This Council should note that the average UK farm size is 213 acres₍₁₎ and land values in Newark and Sherwood average £11,000 per acre_(2), depending on grade and area (source Savills) means the land value alone is £2.3 million and with other assets included most average farms in our area carry a IHT rating of over £3,000,000.  The Country Land and Business Association (CLA) puts the total farms affected in the UK at 70,000_{(3) .}

The resultant changes to the cap could force local farmers to sell portions of their holdings to pay for the inheritance tax burdens.

Selling holdings will impact farmers and the farming community’s ability to produce food and threatens national food security at a time when geopolitical tensions threaten to destabilise global food production capacity. Furthermore, it will also increase our district’s food supply chain in turn increasing the logistical CO2 footprint at a time when global carbon emissions are still on the increase.

Farming also supports environmental objectives such as increasing biodiversity through habitat creation and support for pollinators whilst simultaneously enhancing natural flood management like tree planting and creating and maintaining buffer zones to mitigate localised flooding.

Detail:

The Council recognises:

• The invaluable contribution of farmers to our district, our food security, enhancing the natural environment and the local economy.

• The immediate and long-term risks posed to local farmers and multi-generational farming families by the current Budget measures.

This Council resolves to write to the Chancellor of the Exchequer, Rachel Reeves MP, on behalf of Newark and Sherwood District’s farming community and urge a reconsideration of the most recent budget decision to levy inheritance tax on agricultural land and protect family-owned farms from excessive tax burdens that threaten their operations and legacy.

1)Source DEFRA (Statics for agricultural land use in the UK at 1 June 2023. Accessed 4 Dec 2024)

2) Source Savills (ww.savills.com). Accessed 4 Dec 2024

3)Source CLA

Cross-Party Support for Local Farmers and Protection Against the Impact of Recent Budget Changes

In accordance with the Rule No. 3.4.3, Councillor J Lee moved and Councillor P Farmer seconded a motion to the following effect:

“Context:

Following the recent Budget announcement by Chancellor Rachel Reeves MP, significant changes to inheritance tax have been introduced that directly impacts our district’s farming community. Changes, to cap agricultural property relief at £1 million for farms, are a threat to the viability of small to medium sized farms in our district.

This Council should note that the average UK farm size is 213 acres₍₁₎ and land values in Newark and Sherwood average £11,000 per acre_(2), depending on grade and area (source Savills) means the land value alone is £2.3 million and with other assets included most average farms in our area carry a IHT rating of over £3,000,000.  The Country Land and Business Association (CLA) puts the total farms affected in the UK at 70,000_{(3) .}

The resultant changes to the cap could force local farmers to sell portions of their holdings to pay for the inheritance tax burdens.

Selling holdings will impact farmers and the farming community’s ability to produce food and threatens national food security at a time when geopolitical tensions threaten to destabilise global food production capacity. Furthermore, it will also increase our district’s food supply chain in turn increasing the logistical CO2 footprint at a time when global carbon emissions are still on the increase.

Farming also supports environmental objectives such as increasing biodiversity through habitat creation and support for pollinators whilst simultaneously enhancing natural flood management like tree planting and creating and maintaining buffer zones to mitigate localised flooding.

Detail:

The Council recognises:

• The invaluable contribution of farmers to our district, our food security, enhancing the natural environment and the local economy.

• The immediate and long-term risks posed to local farmers and multi-generational farming families by the current Budget measures.

This Council resolves to write to the Chancellor of the Exchequer, Rachel Reeves MP, on behalf of Newark and Sherwood District’s farming community and urge a reconsideration of the most recent budget decision to levy inheritance tax onagricultural land and protect family-owned farms from excessive tax burdens that threaten their operations and legacy.”

1)Source DEFRA (Statics for agricultural land use in the UK at 1 June 2023. Accessed 4 Dec 2024)

2) Source Savills (ww.savills.com). Accessed 4 Dec 2024

3)Source CLA

The motion, on being put to the vote, was agreed with 18 votes for, 16 against.

In accordance with Rule No. 5.4 a recorded vote was taken as follows: