MPs plead for change as ‘toxic’ government plans threaten Devon farms

Devon MPs have urged the government to rethink planned inheritance tax changes, warning they will devastate many of the county’s family farms.

Under proposals announced in last October’s budget, inheritance tax will be introduced on agricultural assets worth more than £1 million. Farming couples will be able to pass on up to £3 million to direct descendants before the tax applies.

The changes, set to take effect from April 2026, will impose a 20 per cent tax on qualifying agricultural assets. The rate for non-farming assets remains at 40 per cent.

During a parliamentary debate, Sir Geoffrey Cox, Conservative MP for Torridge and Tavistock, accused the prime minister of shedding “crocodile tears” when speaking to farmers.

He said: “His voice trembled as he conveyed to those people in my constituency, across England and in all the regions of this great country that he would never impose upon them the tax that he has imposed upon them.

“It is a cynical breach of a promise. The time has come for the ministry and the ministers to accept that they are wrong. Their figures are wrong. They should change the policy.”

South Devon Liberal Democrat MP Caroline Voaden challenged the government’s claim that 73 per cent of family farms would be unaffected. She cited a Lib Dem survey in which 85 per cent of farmers believed they would be impacted.

She highlighted the high cost of land in South Devon, home to nearly 500 farms, estimating the average inheritance tax bill at £637,000.

“This is unworkable and will see the decimation of our family farms,” she said. “The rural economy is heavily dependent on farmers but goes much wider than just the farmers themselves. The impact of the change will be enormous in rural communities like mine.”

She also stressed the crucial role of farmers in tackling climate change and ensuring food security.

“Why place them under yet more pressure after all the challenges they have already faced in the last decade?” she asked.

“This includes damaging trade deals, the poorly managed transition to environmental land management schemes, a botched deal with the EU that has limited their ability to export, higher input and energy prices, and of course, floods.

“This is a toxic mess for farmers.”