MP urges government to scrap family farm tax

The MP for North Devon has called on the government to abandon the "family farm tax" after a recent report by the Office for Budget Responsibility (OBR) revealed that changes to inheritance tax rules would have minimal impact on public finances while placing significant strain on farming communities.

The OBR report estimates that altering Agricultural Property Relief (APR) under Inheritance Tax (IHT) rules will raise £500 million by 2029/30. 

However, North Devon MP Ian Roome described the tax as having “substantial knock-on effects”, arguing that the policy will disproportionately harm family-run farms already grappling with financial difficulties.

“The level of distress I've witnessed among local farmers highlights the disproportionate impact of this policy, especially when the financial return is so minimal, as the OBR suggests. The report confirms that the government must urgently rethink and scrap the family farm tax,” said Mr Roome.

The Liberal Democrat MP highlighted that in Devon, where agriculture and food production represent a larger share of the economy than the national average, the proposed changes could have severe consequences. 

Nearly 400 farms in North Devon alone are at risk of being impacted, according to Mr Roome.

"Since the family farm tax announcement, I have had so many local farmers in North Since the family farm tax announcement.”

“After years of neglect under the Conservatives, we must support our rural and farming communities. Farmers are the backbone of the British economy,” he said.

Mr Roome also criticised the additional costs farmers face in seeking professional advice to navigate the complex IHT regulations.

 He described the government's revenue projections as "uncertain and unstable for two decades," arguing that the policy rationale does not hold up under scrutiny.

“The government must urgently rethink and scrap the family farm tax,” he added. 

“The Liberal Democrats will continue to urge the government to change course and to scrap the family farm tax.”

The Liberal Democrats have pledged to continue pressing for greater support for farmers to secure the future of family-run farms across the UK.