Rain Newton-Smith from the CBI criticized Rachel Reeves's upcoming cuts to Agricultural Property Relief, stating the move could culminate in a 20% inheritance tax charge on farm estates. This policy change threatens to weaken the farming sector, potentially jeopardizing UK food security as 58% of food consumed domestically comes from local farms. Critics highlight the disproportionate burden on family-run businesses, with warnings of job losses and a significant financial impact. An alternative proposal to mitigate the tax impact was suggested by NFU president Tom Bradshaw but was dismissed by the Treasury.
Newton-Smith criticized the Chancellor's charge on farm estates, calling it a "£500 million raid" that has led to a collapse in industry confidence.
To ensure a resilient economy, we need a strong farming community," she noted, emphasizing the importance of the farming sector for UK food security.
The CBI argues that the changes could cost up to 125,900 jobs by 2030 and result in a £1.26 billion net loss to the Treasury.
Bradshaw argues for a proposal to only levy IHT if farm assets are sold within seven years of the owner’s death, to protect farmers.
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