Debate contribution: Inheritance Tax Changes: Impact on Family Farms

Debate contribution by Mr Declan McAleer on 11 February 2025.

MLA

Mr Declan McAleer

Party at the time

Sinn Féin

Date

11 February 2025

Type

Debate contribution

Business

Private Members' Business

Heading

Inheritance Tax Changes: Impact on Family Farms

Assembly identifier

Official Report component 4793772

Read the official Assembly record

Text

Thank you. I thank everybody who has taken part in the debate. We kicked off with Áine Murphy highlighting the struggles faced by farmers. The inheritance tax changes will jeopardise farming futures. Farms of over 27 hectares will be impacted. Because of rising land prices, farmers will be forced to sell land to pay off their unbearable tax burden. She also linked it to food security, the erosion of the fabric of rural communities and an assault on the rural way of life. She said that this would impact on 77% of dairy and one third of livestock farmers. Farmers should have the right to pass on family land to their families. She also referred to the South of Ireland, where there are mitigations in place to alleviate and support the long-term health of the agri-food sector, which we do not have here. She noted the roles of the Finance and AERA Ministers and the First Minister and deputy First Minister in making representations to the UK Government and DEFRA. She also mentioned the role of the UFU in mobilising farmers to oppose this. The UFU has been highlighting the genuine fear and anger amongst the farming community. She called on the UK Government to reverse this family farm tax. Michelle McIlveen spoke next. She said that this was a Westminster decision and recognised the huge pressures that are already on farmers such as inflation and livestock costs. She said that farmers work tirelessly on their farms and that farms are part of our heritage and economy and are central to food production and keeping our landscape intact. She said that the Chancellor's decision will impact on farms severely. There are 6,000 farms here that will be impacted, and we are more severely impacted here than farms across the water, due to land value, age and being more livestock-based. Also, there will be a bigger impact on people who are older or ill or are sole farmers. She said that this will push many farms to collapse. Unfortunately, so far we have seen no move from the UK Government. She called on the AERA Minister to do more to help farmers. John Blair picked up the same theme: the profound impact and deep concern among the farming community. After generations of hard work, the next generation is crucial for sustainability, but the tax change risks this. It impacts about half the farms in the North, particularly in the dairy sector. People are being forced into a decision of whether to pay tax or sell the land, and that has a wider impact on the rural economy. He said that the UK Government have disregard for the local agrisector. He referenced the work of the AERA Minister in lobbying the UK Government and the NI Affairs Committee along with the FM, the DFM and others. He said that the UK Government must reconsider the policy and that increased engagement between the Executive and the Government is needed. He also made the point that this is not an "us versus them" contest between farmers and the environment and that the environment and economic sustainability are closely interrelated. Robbie, the Chair of the AERA Committee, recognised the mounting pressures on farmers. He cited TB, ammonia, planning issues, inflation, uncertainty regarding future farming support, climate change and the fact that 80% of farmland is impacted here. He said that the Executive must do more to lobby the Government before the spring statement. We need every legislative tool at our disposal to support farmers, and this could risk compromising food security. Patsy of the SDLP highlighted the emotional attachment between farmers and their land, especially that which has been passed down through the generations. It is not just an accountancy matter. Farmers could be forced to pass on debt to the next generation, and that debt will ruin future investment in the business. He said that the Labour Government should go after those who purchase land to dodge tax and not target genuine farmers, who are providing food security. He also said that the tax is having a disproportionate impact on farmers here. Jemma Dolan of Sinn Féin said that it is an unjust tax that will jeopardise the future of farms and force sales. She referred to the joint representation from the First Minister and the deputy First Minister and the Minister of Agriculture, Environment and Rural Affairs to the UK Government in November. She talked about the hard work that farmers do and how central that work is to maintaining food security. She said that Sinn Féin will continue to raise the issue at the British-Irish Council. She said that it is an all-island issue because agri-food is produced across the island of Ireland, and she mentioned that there is targeted relief in the South of Ireland and that the North is disproportionately impacted on. She urged the UK Government to reconsider and to protect our farmers and the rural economy. Tom Buchanan of the DUP said that the changes are a betrayal of hard-working farmers, threaten their livelihood and could force them to sell off their land. He cited a study from the NI Rural Valuers Association that shows that farms face severe financial burden, hindering succession by the next generation and preventing investment in new technology for achieving economic and environmental sustainability. He said:

"Where there are no farms, there is no food"

and called on the Minister to do more to support farmers. Andrew McMurray of the Alliance Party said that the NI Rural Valuers Association made a striking finding. He gave the example of a dairy herd of 100 being increased by 41% to make up the cost of the tax and said that the increase in land prices could cause a lot of stress for farmers and result in their family losing the farm if they were to pass away early. He called on the Executive to lobby the UK Government. Jonathan Buckley talked about the positive impact that farming has here and said that the decision is potentially devastating for local farms, which are now fighting for survival. He said that it was a double whammy from the Labour Government and referred to the tax as a "death tax" that will restrict young people from going into farming. He called on the Minister to stand up for farmers and highlighted the many other issues facing them, such as TB, ammonia and the need for sustainable agriculture policies. He congratulated farmers on their noble protests. Diana Armstrong of the Ulster Unionist Party welcomed the opportunity to reaffirm the House's opposition to the tax. She talked about how having no farmers means having no food and said that there is a knock-on impact on the wider rural economy. She also referenced the College of Agriculture, Food and Rural Enterprise (CAFRE). Of course, there is CAFRE campus in her constituency, and she knows how important it is. She said that it is a tax on top of the many other issues that farmers face, including increasing bureaucracy. She commended the Ulster Farmers' Union, which is articulating the anger of the farming community at this time, and said that the Ulster Unionist Party is in Westminster arguing the farmers' case in the Lords and the Commons. She also said that rising land values will force many small or moderate-sized farms to cross the threshold, leading to a situation in which farmers are having to pay the tax. She added that it is important to balance farm policies with environmental policies. Deborah Erskine said that the tax has had a massive impact in Fermanagh and South Tyrone, causing stress, worry, burnout and the fear of an unexpected death. She said that it is a land grab by the Labour Party and that there was a perfect storm of many issues, such as TB, avian flu, the changing weather, inflation, a lack of sectoral understanding of the tax and the constant hits that farmers keep getting. She talked about how, when there is a sudden death in the family, families are now thinking about whether the taxman or woman will be at the door at a time of grief. She said that the tax has potentially ripped the heart out of rural communities. She said that young people do not want to inherit what will effectively be a millstone of debt around their neck. She added that there are not that many viable farms that are valued at under £1 million, that it is time to step up and support farmers and that we all need to sing with one voice in seeking change. Timothy Gaston said that the Labour Government have no empathy for farmers and that land prices here are twice as high as prices across the water, meaning that the policy change will have a disproportionate impact here. He said that it is double taxation, as farmers have already paid tax on their land. He said that they have limited cash reserves and will therefore be forced to sell off their land, thus impeding the passing on of farmland to the next generation. He said that it is important for all parties to represent farmers' interests. He talked about farmers' worry and stress, the devastation that the tax could cause the agri-food industry and how it could lead to food shortages in the future. He said that we need to resist the tax at every level. Gerry Carroll opposes the motion. He said that most land here is not impacted on and that the campaign was being led by the political right and hobby farmers who buy land to dodge tax. He also said that big landowners are responsible for driving up prices, which has an impact on small and tenant farmers. He also called for targeted support for biodiversity and environmental measures. Andrew Muir highlighted the fact that this is a reserved matter but said that he was happy to respond. He said that he spoke at the UFU rally against the tax and has been working with his Executive colleagues to oppose it. He also said that he was frustrated by the lack of engagement with the UK Government and the devolved Governments on the issue. He said that land values do not reflect earning potential, and he linked it to succession planning. He explained that he has raised the issue with DEFRA and made the point that the average land value is £21,000 per hectare, which is from the DAERA farm business survey —.

I had almost finished, so thank you very much.

1,766 words. Text as published by the Northern Ireland Assembly.

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