MP warns North Devon farms could ‘close for good’ as Finance Bill goes through

North Devon’s MP has voted against the controversial Finance Bill, saying it risks forcing local farm families to close their farm gates for good.

Mr Roome joined fellow Liberal Democrats in opposing the second reading of the bill in Parliament last night (Tuesday, December 16) but it still passed by 341 votes to 195, as all Labour MPs sided with the Government.

The North Devon MP said he had serious concerns about the impact of the so-called ‘family farm tax’ inheritance cap tax on local farming families and rural businesses.

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The unpopular tax follows the capping of agricultural property relief to £1million when it was previously unrestricted, meaning when farms or businesses pass on to the next generation the owners will now have to pay inheritance tax on any assets above that threshold.

Farmers have argued because farm buildings, land and machinery have a high valuation, the £1m will quickly be eaten up, even though the farm itself might not produce high revenues and they will be forced to sell up family property owned for generations.

Above: Ian Roome MP says the ‘unfair’ family farm tax could force some farms to close for good. Credit: Ian Roome’s office

Speaking after the vote, Mr Roome warned the policy risks forcing long-established family farms to ‘close the gates for good’, particularly in areas like North Devon where farming underpins livelihoods, local supply chains and the rural economy.

He added: “Yesterday I voted against the Government’s Finance Bill because it includes the so-called ‘family farm tax’. Here in North Devon this is a huge issue and the policy risks pushing farms that have been in families for generations towards closing the gates for good.

“I stood alongside farmers from North Devon and across the country on Budget Day as they protested this policy again and I will keep fighting for the local farms who are likely to be hit. We Liberal Democrats also tabled a reasoned amendment setting out clearly why we oppose this part of the bill and others.”

“Our farmers put food on our table and their treatment by this government has been nothing short of shocking.”

Mr Roome has called on ministers to rethink the approach and to work with the farming sector on a fairer solution.

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