DUP farming spokeswoman says: 'Government is used to u-turns - it is time to pull one over the farm tax'
The DUP’s farming spokeswoman has demanded that the government “find reverse gear” and halt its plans to hike up the amount of tax that farmers will pay.
Carla Lockhart said that Labour has already shown itself to be no stranger to u-turning on policies, and this is an example of one being needed.
She was speaking after the government formally unveiled plans to make the policy law this week.
James Murray, Exchequer Secretary to the Treasury, had unveiled plans on Monday for the government’s draft Finance Bill 2025-26, enshrining the government plans unveiled last autumn to change farmers’ tax liabilities.
Farmers who are hit by the new rules will be liable to pay inheritance tax of 20% on farms valued at over £1m.
So if a farm is judged to be worth £1.5m, then £500,000 will be taxed.
Mr Murray told the Commons Labour was aiming to make the tax regime “fairer and more sustainable”.
Mrs Lockhart said: “The Finance Bill presents another opportunity for the government to step-back and rethink its draft tax clauses. We’ve witnessed numerous eleventh hour U-turns on controversial policy plans, and this one should be no different.
"This is an opportune time for the government to find reverse gear. They have wasted a number of prime opportunities and time is running out.
"In reality the £1m threshold is too low, especially when the value of farmland, sheds, livestock etc is taken into account. Small farms in Northern Ireland can easily exceed that figure.”
She added that “several options are on the table, including raising the threshold, and an alternative ‘clawback’ mechanism designed to increase Treasury revenue while protecting working family farms”.
She added: “Industry bodies are hugely critical of the Chancellor’s plans, but the government remains defiant. There is also mutiny within the corridors of Westminster, with Labour MPs from rural areas putting pressure on the Prime Minister to reconsider.
“[These tax changes] will drive farmers to the brink of despair. The demand for mental health services is rapidly increasing, while elderly and vulnerable farmers are distraught at the thought of seeing years of toil and devotion to build a sustainable business, under threat and at risk of being carved up and sold off to pay tax liabilities.
"Many have taken out life insurance policies, paying extortionate monthly premiums to protect beneficiaries and safeguard succession planning.
“Farmers are the custodians of the land, and the backbone of our rural communities and the wider economy. They should be respected and given a fair hearing. This pending tax burden will not be implemented without a fight.”