Council Backs Farmers In Fight Against Tax Change

Members of Harborough District Council have called for the government to reconsider changes to inheritance tax for family farms.

A 20% levy is to be imposed on those worth over a million pounds from next year, with many local farmers saying they will be badly affected.

Councillors backed a motion at a meeting last night, demanding the decision is re-visited and the impact on individuals and the economy – both nationally and locally – is fully considered.

Cllr Phil Knowles, leader of the council, spoke to HFM:

 

A motion put forward by the opposition Conservative group was amended by the ruling Coalition administration and received virtual unanimous support.

Cllr Neil Bannister spoke during the debate:

 

Cllr Knowles will now write to the government minister with responsibility for the matter to detail the concerns and requests.

The full motion reads:

“We appreciate that the new government are like so many who come into post, having to check exactly what they have inherited.

This, including of course the financial pillars that by their very nature are set to underpin and strengthen the overall structure.  

The inheritance tax and potential changes are it’s said to impact on farmers.  

Harborough District is blessed with considerable numbers of farms, farms that deliver for the nation and not just the local economy.

It’s important to ensure that change delivers for the good and impacts positively.  

We therefore call upon the government to revisit its decision and to consider the impacts on the economy both nationally and locally but also on the individuals involved.  

The leader be asked to write to the government minister detailing this motion, our decision and our requests”.

A government spokesperson said commitment to farmers ‘remains steadfast’.

They said £5bn had been committed to the farming budget across two years and added “Our reform to agricultural and business property relief will impact around 500 estates a year.

“For these estates, inheritance tax will be at half the rate paid by others, with 10 years to pay the liability back interest-free.

“This is a fair and balanced approach that protects the family farm while also fixing the public services that we all rely on.”