Rain Newton-Smith, head of Britain’s largest enterprise group, attacked Rachel Reeves’ tax raid on farmers, arguing that it dangers endangering meals safety and hampering financial progress.
Talking on the Nationwide Farmers’ Union’s (NFU) convention, Newton-Smith stated there was no sector extra “foundational” to the UK financial system than farming.
“Farming is an important a part of the on a regular basis financial system – the true job creators and group builders that prop up our complete financial system. You possibly can’t get progress until you begin by backing sectors like this,” she stated.
“Any progress plan will tumble. Any industrial technique will fall flat on the first hurdle… if we don’t first again our foundational sectors,” she added.
However Newton-Smith famous that confidence had nosedived within the agriculture sector because of the tax modifications introduced in final October’s Funds.
Previous to the Funds, farmers had been capable of declare 100 per cent aid from inheritance tax on agricultural land, however, from April 2026, they must pay the tax on the worth of land above £1m at an efficient price of 20 per cent.
Chancellor Rachel Reeves stated the measures would “be sure that we proceed to guard small household farms”, whereas additionally clamping down on tax avoidance.
However NFU estimates counsel that round three quarters of farms shall be impacted by the tax.
Many farmers must promote their farms to pay the tax invoice, in accordance with the NFU, doubtlessly endangering meals safety sooner or later.
Newton-Smith warned that it was very important for the federal government to strengthen home farming as a part of the broader push to generate financial progress.
“Progress and resilience are two sides of the identical coin. You possibly can’t have one with out the opposite,” she stated.
“However as the federal government targets resilience – how will you try this with out at the very least some self-reliance?… 58 per cent of meals consumed within the UK is from UK farmers…To make sure a resilient financial system, we want a robust farming group.”
