Murdo Fraser MSP has said that the UK Labour Government’s ‘family farm tax’ has the “whiff of the politics of envy” about it.
The Scottish Conservative politician recently met with members of the Fife branch of the NFU (National Farmers Union) Scotland and spoke earlier this week on the issue during a debate on The Impact of the UK Government’s Budget on Scotland’s Rural Economy.
The debate followed widespread anger at the Labour Government’s decision to hit farm estates worth over £1 million with a 20% inheritance tax. The farming community have been largely incensed by this move with a demonstration taking place in London today, which drew an estimated 20,000 protestors to Whitehall.
Speaking during the debate in the Chamber at Holyrood, Mr Fraser said: “I attended a meeting with the National Farmers Union of Scotland Fife Branch just over a week ago. It was clear from the concerns raised at that meeting what was the strength of feeling about the impact of the Labour budget on the vital farming sector. Farmers have two particular concerns, firstly around the future of agricultural support payments, and secondly around changes to inheritance tax.
“I saw some figures this week that suggested that the return on capital of a family farm can be well below 1%. There might be land worth millions, but the actual profit from the business activities on that land might be in the tens of thousands.
“There will simply not be the resource there to pay an inheritance tax bill if a farmer wishes to pass it down from one generation to the next, even if the necessary bill could be paid over a ten-year period.
“The inevitable consequence of this inept and poorly thought-out policy will be that family farms will be broken up, as the only way to pay the tax bill will be to sell off pieces of land, so they become even less viable. It is a policy invented by those who have simply no understanding of the economics of farming or of the countryside. It has the whiff of the politics of envy. To the man or woman in the street, an asset worth millions might sound like unbelievable riches, but that doesn’t recognise the reality of the business of farming.”
He continued: “Today, we are seeing farmers descending upon London to protest, and a similar demonstration is due here at Holyrood next week. I sincerely hope this Labour Government will listen to those voices. They will do untold damage if they push ahead with their inheritance tax plans, and our ability to feed the country, and provide food security, will be severely damaged.”
