Our recent Labour Party's disastrous budget (their first in 14 years), had a number of nasty elements; the worst of which was an attack on our farmers.
Small family owned farms have been the backbone of British food-producing since Adam.
Passing-on the family farm from Father to Son/Daughter, free of inheritance tax, has meant that there has been a continuity in the quality and standard of UK food production.
But now, dear Rachel Reeves (who has probably never visited a family-run farm in her life) has decided that all this must end. All farms valued over £1Million will now attract 20% inheritance tax when passed-on.
Most small farms just about make ends meet, any profit usually goes on new equipment or infrastructure. Most also live with huge amounts of debt. There would be nothing left for a massive tax bill, making it obligatory for the beneficiary to sell-up. The knock-on effect of this tax will be disastrous.
I would like to suggest that the fragrant Ms Reeves watches the BBC TV programme 'This Farming Life' which shows exactly how strenuous life can be. We should be grateful to our farmers, not kick them in the boll*cks.
This Socialist policy is possibly the most disastrous of all their budget horrors. It will effect every one of us. Less food will be grown here, we will need to import more, and those who were doing a really good job for their country will end-up twiddling their thumbs. Smaller farms will, in future, end-up as home to little Penelope's Ponies and Alpacas.
When Labour promised not to tax 'working people', did they really think that farmers don't work? Farming involves skills that are passed from generation to generation, and you take all that away at your peril.
But don't be too depressed. No doubt a different party will reverse this shortly.
What on earth were Labour thinking!
Haven't seen This Farming Life here but did watch Jeremy Clarkson's programme on his farm and was amazed at all the regulations put in the way of farmers.
ReplyDeleteI only saw one or two editions of Clarkson; he's very funny.
DeleteIt's not just Reeves - just how many of her fellow cabinet members or advisors, or Two Tier Kier, have ever realised that food doesn't grow on a Waitrose shelf, it comes from real farms in the real country - that bit of the UK full of all of those horrible nasty individuals who dare to not vote Labour. This is part and parcel of the same vindictive and spiteful attitude behind the VAT raid on private schools.
ReplyDeleteThey want to tax anything they don't understand.
DeleteI have seen the light. I voted Reform but realise the error of my ways.
ReplyDeleteUs labours have to defend ourselves from independent wealth creators. Blackrock and that strange Windows chappy are only rescuing the situation and if the paragon of virtue what is Kier can make a bob or two from bankrupting farmers so they can buy their land then that is fine and just. I heard Stammer mention once or twice that his dad was a toolmaker. He overdid that a bit as even the daftest of the Far Right realised what his dad did, telling us once would have been enough.
I could go on but I've got so much to learn and I'm finding the other us labours such intelligent and erudite people. People who have risen from lowly beginnings as tea lady at the BOE to Chancelloress of the UK just by getting a literate one of us labours to write a CV for her.
And manage to get porkies on her CV - she was never an economist as she claimed. Not to mention having her parliamentary credit card suspended - good recommendation for a future chancellor?
DeleteI'd love to see Angela Rayner's CV. It's probably blank.
DeleteI'll have you know the depth of talent in us labours is staggering. Our foreign secretary is actually an African so knows all about Afica and other stuff as well.
DeleteWill, I'll have you Know that in Us Labours world we can identify as whatever or whoever we want. Pixie Balls identifies as human. As for mistakenly abusing the credit card, it's nonsense. When one is dealing in billions of pounds of our money losing a few tens of thousands of the self same money down the back of the sofa is neither here nor there.
DeleteShe is determined to ruin this country, first the winter fuel payments, ok we can get by without it, but I know a few who can’t, then the farmers, we know a few farmers who work lots and lots of hours for what nothing now, she needs to go
ReplyDeleteI hear this morning that there has already been one 'uncorroborated' suicide. Sadly, I fear this won't be the last.
DeleteHow long do you think this PM will last??
ReplyDeleteHe's very unpopular, even with the people who voted for him. We'll have to wait and see.
DeleteI love the program - Farming Life. I am appalled by this tax.
ReplyDeleteI watched a couple of episodes recently. I have such admiration for the 'hill farmers' especially.
DeleteThey're coming out with horrors daily! I can't stand the lot of them.
ReplyDeleteWe all knew what they'd do, but people voted for them regardless. Now they're regretting it.
DeleteWell farmers have wide shoulders and work hard, so they are ripe for for attack, it's a stupid policy, not thought out for repercussions, just another way of getting money, along with changing the rules on borrowing, how high is our debt going to be.....
ReplyDeleteTax, spend, and borrow, They're going to make an awful mess of things.
Delete‘It’s massive’: farmers shocked at budget – but is concern over inheritance tax overblown?
ReplyDeleteCountryside defenders from NFU to Clarkson are up in arms – but experts say only richest estate owners will be affected... "The Guardian" yesterday.
I think The Guardian might be a tad biased. All farmers will be hit. Many will simply have to sell-up as their borrowing is usually already at its limit. And, as I know to my own cost, the tax people won't wait to be paid.
DeleteGiven current agricultural land values, any reasonable size farm is way over the £1M value, and so will be caught. And most family farms will be unable to raise the sums demanded without land sales and these will probably destroy the profitability of the farm. Hence the concerns amongst the rural communities. Do we really want our agricultural land bought up by big business and the likes of Bill Gates (who is incidentally the largest owner of US farm land).
DeleteBG will probably be able to buy the whole of the UK for peanuts.
DeleteNot strictly politics, but did you know that the now King, when he was a young man, spent weeks living with a family of West Country small farmers, in their home? He knew he would run the Duchy, and wanted to know how things worked at ground level. It really annoys me that most decisions are taken by people who have no experience outside of London.
ReplyDeleteNot just "no experience outside of London" but mainly no experience outside of politics. Just how many of the current government and opposition front benches have actually built and run their own business? Or even worked in the private sector?
DeleteI'm afraid that is correct. They might have a PPE degree, but that's not the same as building a business from scratch.
DeleteA couple of working days on the farm would put them to rights in a quick turn.
DeleteLike John's blog the other day....put the heads of the parties/countries in a house with the bare essentials and make them do all the work to make themselves comfortable for even a week. Firewood, open hearth,food not cooked, water from the well pump out doors, an outhouse, no electricity. Let's see just what "stuff" they are made of.
Cooperate or die trying.
That's a good subject for a TV reality programme. MP in the Croft.
DeleteWould be even better if Mad Millibrain was included, give him a toy fan and a garden solar light as his only energy source - cannot burn wood, it generates CO2!
DeleteThe grandfather in a wealthy family I know, with no history or interest in farming, bought a farm, which subsequently passed free of IHT to the grandchildren, who promptly fold it. They passed on several million pounds free of IHT. The farm was tenanted out the whole time. It is cynical abuses like this that spoil it for the honest family farmer.
ReplyDeleteI imagine that is a very rare case, and it really has no baring on the small family run farm that will suffer.
DeleteI can recall that in the 1960s there were "hobby" farmers who offset losses from the farms against other corporate profits, but I thought that Wilson stopped that?
DeleteI'm not sure it is all that rare. It is a recognised avoidance trick. Anyhow, they did not end the 7-year exemption rule, so avoidance by timely gifts remains the sensible route, as would imagine you, I, and many others have done already with non-farm assets.
DeleteYes; I'm now penniless!
DeleteI read that Ms. Reeves is firefighting and needs to find 20-30bn sterling to invest in public services.
ReplyDeleteI do not understand the farmer inheritance tax change because Britain already takes in over 800bn in tax annually. French counterparts are having to raise vastly more to resolve their own fiscal crunch. Increasing broad-based taxes like income tax or VAT would quickly balance the books without hurting growth much.
Regarding the UK farmers, can't they put their farms in "trusts" to ensure they pass on to family while avoiding inheritance tax? This is typical in the US and not just farmers.
They never needed to create trusts, but now it would simply be building-up even greater taxes for the future. You can't win with this lot.
DeleteIn the US when a 1million dollar asset is in "trust" it is not taxed when inherited. If the asset is above 1million, you create two trusts to avoid taxes.
DeleteThe other option is to create a "life estate" whereby the asset is passed on upon death and does not go through probate.
No doubt someone somewhere is working on a tax-free scheme as I write!
DeleteI watched "This Farming Life" earlier this week and was humbled by the amount of work, and number of hours, the average farmer puts in to keep things running. They really do work hard. It would be a very good idea if the farmers hit back by demanding that the likes of Reeves and her cohorts worked on the land for a month. They wouldn't be missed by the public, but after they'd done all the really nasty jobs and spent all night helping a struggling ewe give birth, they might decide that the inheritance tax is a step too far.
ReplyDeleteWhen they fail to accept farmers as 'Working People', it just goes to show how stupid they are. Heaven help us!
DeleteYour Labour Party sounds about as stupid as the US Democrats. Lord help us all.
ReplyDeleteThey won't last, and much will be reversed (I hope).
DeleteI can't recall an incoming government reversing or cancelling any legislation. We are governed by a Uniparty. there's a glimmer of hope for change with Reform but its is only a glimmer.
Delete