Rishi has spoken about the folly of the Government’s family farm tax and the importance of food security.
He said nothing indicated the Government’s lack of understanding of the way farming worked than the plan, announced in the Budget, to change Inheritance Tax.
Speaking to the NFU Northallerton Group Winter Supper, at High Brockholme Barns, Streetlam, Rishi said: “Nothing sums up the Government’s ignorance of the countryside better than their plan to tax the family farm.
“The Government claims that only a tiny number of people will be affected by this. But that’s just plain wrong—and, as you well know, they’re being told that by everyone from the banks, to the Central Association of Agricultural Valuers and even the supermarkets.
He added: “This tax raid – which like so many other things they promised they would not do – will devastate the countryside.”
Under the plan farm assets will no longer be completely exempt. Agricultural Property Relief will be limited with 100 per cent relief from inheritance tax only available for the first £1m of combined agricultural and business assets, falling to 50 per cent beyond that.
Rishi warned the change would mean that parents could not pass on their farm to their children, that families would have to sell land they have farmed for generations and that tenant farmers would be evicted.
“The Government doesn’t understand the role of Agricultural Property Relief,” he said.
“It is an essential part of the tax system designed to ensure that farms can be passed on from generation to generation and continue to produce the food that feeds us all.
He said that in an increasingly uncertain world and in an age of climate change, global food production would become increasingly volatile. Food security was national security.
“So, we must strengthen our food security here at home. That means backing you – our farmers –not taxing you off the land because we all know that no farmers means no food.”
Rishi said that as Prime Minister he had been proud to introduce a Food Security Index, to monitor how much food we were producing and set targets to boost food security and resilience. Rishi said the last government had invested £16bn in food security.
Rishi concluded his remarks saying: “I always had your back as Prime Minister and I can promise you this: I will always fight for you as your local MP.”
Earlier the same day, in the House of Commons, Rishi had asked Defra ministers to continue the work he had started in government to make it easier for small food and drink producers in his constituency and around the UK to bid for and secure contracts to supply the public sector.
In response, Daniel Zeichner, Minister for Food Security and Rural Affairs, said he was very happy to work towards making the proposals work.
