The
Council (25 voting in favour, 0 voting against, 0 abstaining from
voting) agreed the following motion:
“Council notes that:
- The
recent 2024 Autumn Budget change to Inheritance Tax relief
announced by the Labour Government will introduce a Family Farm Tax
and will have a detrimental impact on Family Farms and
farmers’ ability to pass on their farms to the next
generation of farmers and essentially putting at risk our
nation’s food security.
- House
of Commons Library research, commissioned by the Liberal Democrats
has revealed that farming subsidies have fallen by 20% in real
terms since 2015 - equivalent to the loss of £722 million in
public funding for farmers.
- Last
year alone 8,100 UK farms closed their doors - equal to one in 25
of all farms in the country.
Council
believes that:
- The
Labour Government have committed a shameful betrayal and let down
farmers by breaking their promise to not introduce a Family Farm
Tax.
- The
Family Farm Tax will damage the ability of farmers to pass on their
farms to the next generation of local farmers.
- Labour’s Family Farm Tax will threaten food security by
forcing the sale of family farms and, with a smaller number of
farmers, removing competition from the marketplace by stealth, risk
basic food cost hikes for our residents.
- The
Labour Government’s Family Farm Tax will make British food
production harder.
- That
the Secretary of State for Environment, Food and Rural Affairs,
Steve Reed and Keir Starmer promised not to introduce a tax like
this.
- Numerous rural and farming organisations such as the National
Farmers’ Union and Country Land and Business Association have
warned that countless farms will be harmed, threatening food
security and rural areas like ours.
- The
comments made by Secretary of State for Environment, Food and Rural
Affairs Steve Reed that already struggling farmers will have to
‘do more with less’ shows an absolute ignorance as to
how the rural economy works.
- At a
time when many farmers in South Cambridgeshire are struggling with
soaring costs and energy prices, this sudden tax rise will damage
the future of their farms and our local economy.
- There
are more equitable ways of making sure that people do not use the
agricultural property relief to avoid tax by buying agricultural
land (often at the expense of small family farms).
- The
Government’s claims surrounding the proposals are reliant on
a number of dubious assumptions:
- The
number of farms likely to be affected by the proposal is
significantly higher than the Government’s estimates –
according to the NFU, this will affect 75% of active commercial
farms, compared to the Treasury’s estimate of 27% (which
would include bare farm land and
non-commercial farms).
- The
assumption that all farmers will be able to benefit from exemptions
for married couples is flawed.
Council
further believes that:
- Farmers are key allies in tackling climate change and the
natural capital crisis, caring for and restoring the countryside
while producing high-quality food for our tables. But their ability
to do this has already been threatened by the transition away from
the Basic Payment Scheme (BPS) and the failure to properly rollout
the Environmental Land Management (ELM) scheme, which has resulted
in many farmers fearing that new systems will fall short of what is
needed.
- The
many failings of the Brexit deal have also contributed to the
problems facing farmers including increased food production costs
and shortages as well as severely damaging their ability to export
to their main markets in Europe. New trade deals have undermined
animal welfare and environmental protection, undercutting
responsible British farmers and setting a dangerous precedent for
future deals.
Council
resolves:
- To
request that all Group Leaders write to the Secretary of State for
Environment, Food and Rural Affairs to outline the Council’s
dismay at this decision and call on the Government to stop the
Family Farm Tax and to reverse the damage inflicted on our Farmers
by fixing our relationship with the EU.
- To
request that the Lead Cabinet Member for Economic Development
continues to work with our MPs, to represent the challenges faced
by farmers in South Cambridgeshire, as they meet with groups
representing local farmers.
- To
request that Cabinet reviews how local family farms are better able
to access the support made available by the Council to SMEs across
South Cambridgeshire and how we can support them as they transition
to nature-friendly farming practices.”
Councillors In Favour: John Batchelor,
Paul Bearpark, Dr Shrobona Bhattacharya, Anna Bradnam, Tom Bygott,
Ariel Cahn, Dr Martin Cahn, Stephen Drew, Libby Earle, Sue
Ellington, Corinne Garvie, Sunita Hansraj, William Jackson-Wood,
Helene Leeming, Daniel Lentell, Dr Lisa Redrup, Judith Rippeth,
James Rixon, Peter Sandford, Richard Stobart, Dr Susan van de Ven,
Natalie Warren-Green, Dr Richard Williams, Heather Williams, John
Williams
Councillors Against: None
Councillors Abstaining: None