‘Right and fair' to end inheritance tax exemption for farms, says Chancellor on Belfast visit
The Chancellor visited Ulster University facility Studio Ulster in Belfast this morning, before another stop later at defence manufacturer Thales in the east of the city.
The government said her visit was to confirm investments which would 'fix the foundations for long-term prosperity'.
One investment was the 'largest real-terms settlement for the Northern Ireland Executive since the Belfast Agreement, averaging £19.3bn per year until 2029'.
Those include £310m in new UK Government funding for Northern Ireland's City and Growth Deals, confirmed in June's Spending Review and now allocated to support high-growth sectors.
Her visit to Thales will mark £100m new private sector investment from Thales, supporting expansion and up to 200 new jobs in the defence sector.
And she'll also confirm £137m in new funding to tackle paramilitarism and organised crime, removing barriers to investment and growth.
Her decision in the Autumn Budget last year to remove an exemption from inheritance tax for agricultural property from April next year was met with vocal opposition by farmers in Northern Ireland.
Asked on Tuesday morning if she had any sympathy for farming families now facing inheritance tax and if she would go back on the changes, she said: 'Last year at the Budget I had to raise significant sums of money to put our public finances back on a firm footing but also to put that record investment into our NHS and also to provide that record settlement for the NI Executive, the biggest real-terms settlement since the Good Friday Agreement, and that money is only available because of the decisions that we took in the Budget last year.
'But they were the right and the fair decisions. We didn't increase the taxes that ordinary working people paid. Their national insurance, income tax, Vat, fuel duty did not go up in the way that the previous Tory government had in their plans, so protecting the incomes of ordinary working people and since we came into office, real wages have been rising at a faster rate than inflation.'
She added: 'Specifically on agricultural property relief, if you've got agricultural property worth less than £3m and you own it jointly with a partner, you'll pay no inheritance tax when you pay that farm on.
Belfast History Explained: Who was Mary Ann McCracken?
'But I do believe that if you do have agricultural property worth more than £3m you should make a contribution but the inheritance tax on that is half the rate that anybody else pays, just 20%, and it's payable over 10 years interest-free, so I do think that fits the required balance, we needed to raise money to invest in public services.
"If people disagree with those tax changes, they either need to admit that they're not willing to put the money into our public services and that settlement for the NI Executive or that they would increase taxes elsewhere, for example on ordinary working people.
"Those weren't my choices, I made my choices and I'm very happy to defend them.'
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Belfast Telegraph
2 days ago
- Belfast Telegraph
‘Right and fair' to end inheritance tax exemption for farms, says Chancellor on Belfast visit
And she told Belfast Telegraph that decisions including making inheritance tax payable by farmers had been 'right and fair' and ensured the tax burden for 'ordinary working people' did not go up. The Chancellor visited Ulster University facility Studio Ulster in Belfast this morning, before another stop later at defence manufacturer Thales in the east of the city. The government said her visit was to confirm investments which would 'fix the foundations for long-term prosperity'. One investment was the 'largest real-terms settlement for the Northern Ireland Executive since the Belfast Agreement, averaging £19.3bn per year until 2029'. Those include £310m in new UK Government funding for Northern Ireland's City and Growth Deals, confirmed in June's Spending Review and now allocated to support high-growth sectors. Her visit to Thales will mark £100m new private sector investment from Thales, supporting expansion and up to 200 new jobs in the defence sector. And she'll also confirm £137m in new funding to tackle paramilitarism and organised crime, removing barriers to investment and growth. Her decision in the Autumn Budget last year to remove an exemption from inheritance tax for agricultural property from April next year was met with vocal opposition by farmers in Northern Ireland. Asked on Tuesday morning if she had any sympathy for farming families now facing inheritance tax and if she would go back on the changes, she said: 'Last year at the Budget I had to raise significant sums of money to put our public finances back on a firm footing but also to put that record investment into our NHS and also to provide that record settlement for the NI Executive, the biggest real-terms settlement since the Good Friday Agreement, and that money is only available because of the decisions that we took in the Budget last year. 'But they were the right and the fair decisions. We didn't increase the taxes that ordinary working people paid. Their national insurance, income tax, Vat, fuel duty did not go up in the way that the previous Tory government had in their plans, so protecting the incomes of ordinary working people and since we came into office, real wages have been rising at a faster rate than inflation.' She added: 'Specifically on agricultural property relief, if you've got agricultural property worth less than £3m and you own it jointly with a partner, you'll pay no inheritance tax when you pay that farm on. Belfast History Explained: Who was Mary Ann McCracken? 'But I do believe that if you do have agricultural property worth more than £3m you should make a contribution but the inheritance tax on that is half the rate that anybody else pays, just 20%, and it's payable over 10 years interest-free, so I do think that fits the required balance, we needed to raise money to invest in public services. "If people disagree with those tax changes, they either need to admit that they're not willing to put the money into our public services and that settlement for the NI Executive or that they would increase taxes elsewhere, for example on ordinary working people. "Those weren't my choices, I made my choices and I'm very happy to defend them.'
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Why Progressive is backing new housing in Northern Ireland
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Belfast Telegraph
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NI venue to host major international summit in autumn
Hillsborough Castle will be the site of talks concerning the Western Balkans in October, led by Foreign Secretary David Lammy. It is aimed at promoting economic growth in the Balkan regions. The Western Balkans comprise of Albania, Bosnia and Herzegovina, Montenegro, North Macedonia, Serbia and Kosovo. Also attending will be representatives from the UK, Austria, Bulgaria, France, Germany, Greece, Italy, Poland, Slovenia and Denmark. The meeting on October 8 will focus on efforts to tackle corruption, instability and human trafficking. Mr Lammy will be joined by Secretary of State, Hillary Benn. In 2024, more than 55,000 people were trafficked to other countries using Western Balkans as a gateway. The government is planning a joint agreement on organised crime signed with Serbia, which was finalised with Mr Lammy's visit to the nation and Kosovo in April. Also in October, Home Secretary Yvette Cooper will host a migration-focused interior minister meeting, while in London, the Prime Minster will host a leader's summit. The Western Balkans were plagued by a multi-ethnic and multi-faith conflict from 1992 to 1995 after the break-up of Yugoslavia in June 1991. Mr Lammy referenced how Hillsborough Castle was the site of peace talks in Northern Ireland, leading the Good Friday Agreement in April 1998. "Hillsborough Castle is a poignant reminder of the power of diplomacy to transform conflict and division into long-term peace and cooperation,' said the Foreign Secretary. 'By harnessing Northern Ireland's experience, we hope to support partners in the Western Balkans to overcome the challenges of the past through meaningful reconciliation and help build a safe and prosperous future. 'As part of the Plan for Change, this government is committed to strengthening partnerships with Europe, ensuring strong foundations of economic stability, secure borders and national security.' Mr Benn believes that Hillsborough Castle is a fitting choice of venue for the talks. 'Northern Ireland's experience of securing peace through the Good Friday Agreement after decades of conflict has set a powerful example of reconciliation to the world,' he said. 'This provides a legacy of hope as well as practical experience which I believe will prove invaluable to our Western Balkans partners as they travel a similar path to peace and prosperity. 'As a long-standing forum for peace-building and politics, it is fitting that Hillsborough Castle has been chosen to host this significant international event.' Laura McCorry, Head of Hillsborough Castle, said that 'for centuries [the venue] has been a place where people come together to shape a shared future'. 'The castle stands as a living testament to the power of dialogue and reconciliation in a place where peace has been hard won,' she said.
