This marks the latest development in the NFU’s Stop the Family Farm Tax campaign during a week which has seen all major UK retailers publicly state their concerns, and the OBR (Office for Budget Responsibility) confirming the NFU's fears about the impact on elderly farmers.
In the letter, Mr Carmichael asked for the Prime Minister to meet with him urgently to discuss potential mitigations to the changes as well as the “deep concern” fuelling “low confidence and morale levels in the agricultural and wider rural community”.
The letter compiles evidence from a number of sources, including Prime Minister Sir Keir Starmer’s responses to the Liaison Committee on 19 December, where the PM stated that the purpose of the measures was to “raise revenue in the Budget”, and evidence given by NFU President Tom Bradshaw alongside other farming leaders and tax experts which contradict the Treasury’s figures.
Mr Carmichael writes: “My Committee heard compelling evidence on 11 December from tax experts and representatives of the farming community that many farms had already consulted with financial professionals and the scope of the changes mean that significantly more than the Treasury estimate of 500 farms per year will be impacted.”
The MP later adds that there is “sufficient time between now and the 2026 Finance Bill to adapt the proposals to fulfil your intention to ‘protect the family farm’ while better enabling the Government to meet its fiscal objectives”.
He writes that he supports the messaging in the letter sent earlier this month from all four UK farming unions to the Chancellor, calling for a full and comprehensive consultation to include; the impact of the changes on farming profitability and the viability of farming businesses, the options for older individuals for whom, until now, the most effective tax advice had been to hold their farms until death, and the impact on the tenanted sector.
Time for ministers to face facts
Responding to the news, NFU President Tom Bradshaw said: “It’s great to see the Efra Committee taking action after the NFU gave evidence on the devastating impacts of the family farm tax last month, especially its support for the UK farming union’s call for a consultation on the issue.
“More and more people are opposing this policy. Every single UK supermarket has outlined concerns about the policy this week and now the cross-party Efra Committee has found that the Treasury’s data behind it is contradictory.
“With our own research indicating that 75% of family farm businesses could be affected and the OBR confirming that it would leave elderly farmers horribly exposed, surely it is time for ministers to be honest and admit that this policy needs to be looked at again.”
“It’s great to see the Efra Committee taking action after the NFU gave evidence on the devastating impacts of the family farm tax last month.”
NFU President Tom Bradshaw
‘It doesn’t have to be like this’
The letter was sent as Shadow Defra Secretary Victoria Atkins tabled an urgent question in the House of Commons on Thursday, following the news that new OBR analysis found that the measures will mean elderly farmers have no time to get their affairs in order.
As part of her urgent question, the Shadow Defra Secretary reminded the House of the widespread opposition to the proposed changes with UK supermarkets now backing the NFU’s campaign calls.
Referencing his own life on a family farm, Conservative MP for Broadland and Fakenham Jerome Mayhew called on the government to show humility and consult on the best way forward to tackle tax avoidance without threating British farmers and food security.
Alistair Carmichael concluded “it really doesn’t have to be like this”, while sharing evidence from the Committee’s inquiry and urging the Minister to engage with and protect our farming communities.
