Labour's new tax plan puts thousands of family farms at risk
Labourʼs first budget in over a decade brings major changes to inheritance tax rules affecting family-owned businesses. New regulations might force many rural enterprises to sell their properties to big corporations
Under Rachel Reeves latest budget plan‚ family businesses face harsh new tax rules that target their very existence. The govtʼs approach seems to follow old-school socialist ideas - picking specific groups and making them pay extra (which doesnt help anyone in the long run)
The changes hit hard at inheritance tax shields that protected family companies since mid-70s. Neil Davy from Family Business UK points out some troubling facts:
These changes to business property relief are basically the same as getting rid of it completely; our data shows it will lead to £29bn less economic activity and 391‚000 lost jobs
The math is simple but scary - any farm worth more than £1m (thats about 70 acres with a house) will pay 20% death-tax; this affects like 85% of UK family farms. A typical 217-acre farm worth £2.46m would need to pay £293‚220 in taxes‚ which is just too much for most families
Hereʼs what makes it worse for rural communities:
* Big corporations will buy up local farms
* Solar and wind companies can grab more land
* Property developers will expand their holdings
* Family-run businesses might close down
Sir Keir Starmer and his team told farmers they wouldnt touch agricultural property relief - but here we are. Labour won in 114 rural areas last time; now these tight-knit communities (where family values mean everything) probably wont forget this u-turn
The Office for Budget Responsibility already sees slower growth ahead - looks like Reeves halloween-timed budget might scare away more than just farmers
