Debate contribution: Inheritance Tax Changes: Impact on Family Farms

Debate contribution by Mr John Blair on 11 February 2025.

MLA

Mr John Blair

Party at the time

Alliance Party

Date

11 February 2025

Type

Debate contribution

Business

Private Members' Business

Heading

Inheritance Tax Changes: Impact on Family Farms

Assembly identifier

Official Report component 4793677

Read the official Assembly record

Text

I support the motion and thank the Members who tabled it for bringing the debate to the Chamber. All of us are aware that, understandably, protests have occurred across Northern Ireland in response to recent changes to inheritance tax that will profoundly impact on family farms. The situation underscores the deep concern and frustration felt by our farming communities. The changes threaten not only the livelihoods of farmers but the very fabric of family-owned farms that have sustained generations. Family farms in Northern Ireland are the result of generations of hard work and dedication. The land is cultivated and passed down to the next generation, which aspires to continue the family's legacy. That next generation is crucial in moving to a new era of sustainable farming and land management conducted in a way that helps our natural environment. However, that pathway is now at risk. Ultimately, the tax represents a harsh blow for our hard-working farmers, who are already grappling with the aftermath of a challenging year, marked especially by adverse weather conditions. The financial stress has been compounded, and farmers are experiencing mental strain, even before confronting the new tax realities. As the motion specifies, the Department of Agriculture, Environment and Rural Affairs has estimated that nearly half of farms in Northern Ireland could exceed the £1 million threshold, making them subject to a staggering 20% inheritance tax. Dairy farms, in particular, are expected to face significant challenges due to the tax change, as they typically have more high-value sheds and equipment. For many farmers, the new tax threshold could translate to thousands of pounds every month. That is an amount that could easily ruin a family farm and force farmers into this daunting dilemma: pay the tax or sell the land. That decision is not just financial; it is a life-altering choice with, as I said, consequences for generations to come. We can expect to see farmers being driven away from agriculture altogether, which will lead to a domino effect that impacts on other local businesses as well, businesses that rely on thriving local farming communities. I again express the Alliance Party's profound disappointment with the UK Government's decision. It reveals a startling disregard for the unique challenges faced by the agriculture sector in Northern Ireland, which is vital to our local economy and, of course, to food security. The Minister of Agriculture, Environment and Rural Affairs has had regular engagement with the UK Government on the issue. He has persistently communicated with the UK Government, including discussions with the Secretary of State for Northern Ireland, and has submitted a letter, alongside the First Minister, the deputy First Minister and the Finance Minister, that highlights the potential effects on Northern Ireland farms. Furthermore, the Minister has presented evidence to the House of Commons Northern Ireland Affairs Committee to underscore the possible impact on our farming sector. It is crucial to say that the UK Government must recognise the unique challenges that confront our farming community. They should reconsider their policy so that it aligns more closely with the actual conditions of our agriculture sector. While the Executive have expressed their commitment to supporting the farming industry in Northern Ireland regarding the issue, increased engagement is required before the spring statement 2025 to ensure that the changes are urgently reversed. Farmers serve as custodians of our land and producers of our food, and they are a crucial part of the local economy. As we look ahead, it is essential to acknowledge that their success is intrinsically tied to our food security and environmental sustainability. On that theme, it is regrettable that, on a day when we could have stood as one on the issue raised by the motion, comments were made by the DUP earlier in the debate that implied that anyone with a keen environmental agenda sees the farmer as "the bogeyman". That is simply not the case. Some of us do not see everything as a binary us-and-them choice. Some of us acknowledge the major environmental improvements that there have been in the agrisector but realise that there is still some way to go. We understand that environmental and economic stability are becoming more closely linked. However, the plight of farmers is the main priority in the motion —

— and we are happy to support it in that regard.

723 words. Text as published by the Northern Ireland Assembly.

Assessment

Not flagged

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Assessed 21 October 2026 at 12:00 UTC by jev-1.13.0 (requested as typesafe/jev) under rubric 2026.10-r9, methodology 1.9.

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