Fury as farmers told inheritance tax raid will ‘fund mental health hubs'
Steve Reed, the Environment Secretary, told a cross-party committee of MPs that money raised from the death duties will go to several NHS initiatives.
Opposition MPs told the Environment, Food and Rural Affairs (Efra) hearing that they were 'staggered' by the decision, as they claimed that the Government's own policy has fuelled a mental health crisis among farmers.
Charities have reported a spike in calls from distressed farmers. In November, John Charlesworth, 78, took his own life after his family said he had been 'eaten away' by fear of the tax raid.
Farms worth more than £1m will be saddled with a 20pc inheritance tax bill from next April as part of a controversial plan that could threaten food security and end the tradition of family farms.
Labour hopes the new taxes will raise £500m a year by 2029.
Mr Reed said: 'That money is helping to fund the NHS and the improvements we need in mental health support and the mental health hubs that will be placed in every community'.
'There are particularly high levels of mental ill-health in rural communities,' he said.
'Those who say they don't want to raise revenue to fund these benefits need to tell us which benefits they would cut as a result of changing it.'
The revelation comes two months after ministers quietly shelved a £10m mental health support fund for farmers. Labour resisted calls to extend the Farming Resilience Fund before confirming its planned closure on March 31.
Thousands of farmers have participated in numerous protests since Labour – which did not detail its plans to change agricultural property relief in its manifesto – announced the death duties tax raid.
The National Farmers Union has warned that two thirds of farms will be hit by the tax, compared to government estimates that just 27pc would be forced to pay.
Sarah Bool, South Northamptonshire Conservative MP, told Tuesday's hearing that farmers are struggling with their mental health as a result.
Addressing Mr Reed, she said: 'I'm staggered by what you've said because the mental health strain is unbearable.
'I've heard farmers telling me about family members planning things they shouldn't be doing to get away from this.
'I am really upset to hear you say it like that because you are saying this money will help mental health.'
Alistair Carmichael, the Liberal Democrat MP for Orkney and Shetland, told Mr Reed that 'farmers around the country will be hearing your words and shouting at their TV screens saying we already pay our taxes'.
Farming charity Yellow Wellies recorded a 55pc leap in demand for counselling services and a 13pc increase in calls to its crisis support centre last year.
The Department for Environment, Food & Rural Affairs was approached for comment.
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