An angry backlash greeted the farming minister at this year’s Egg & Poultry Industry Conference in Newport, in response to changes to Agricultural Property Relief (APR) announced in the autumn budget.
Farming assets worth more than £1m will now be liable for 20% inheritance tax (IHT), a decision Tom Bradshaw, president of the NFU, said it was a badly thought through policy that would have unintended consequences.
“The atmosphere in our industry is visceral,” he said. “The feeling of betrayal is something I have never experienced before. The damage that has been done with the budget will take a huge amount of time for our industry to get over.”
Daniel Zeichner, the minister for food security and rural affairs acknowledged the backlash. “Tom Bradshaw is a very serious person and I take what he says seriously,” said Zeichner. “But there are a range of views on how these measures will work out and it is a really complicated situation.”
He said public services needed to be funded and urged farmers to “look at the details”. He also said only 462 people claimed APR last year and said the advice he had been given was that the effect would be minimal, especially with appropriate succession planning.
“I also just need to point out that the chancellor had to mend the public finances because the country could not go on as it was.”
In a fiery question and answer session, poultry business owner James Hook challenged Zeichner on the tax changes, describing them as an “earth shattering blow”.
“I am an angry farmer,” he said. “I don’t think you realise what you have done. I think you’ve got away far too lightly. This is a mess.”
“I hear what you say,” said Zeichner. “I recognise the passion and discontent. The mess is what we inherited from the last government.”
Bradshaw highlighted the commitments made by the Labour party in its election manifesto about food security and said these policies would harm those goals.
“In May 2023, Kier Starmer said he wanted a new partnership countryside based on partnership and respect. Today, we are questioning whether they meant anything to him.
“This is really difficult. I want to work in partnership, but I am wondering if the government really understands farming.”