Latest news with #Efra
Epoch Times
6 days ago
- Business
- Epoch Times
MPs Call for Delay to Inheritance Tax Change to Protect ‘Vulnerable Farmers'
A cross-party committee of MPs has called on the government to delay changes to inheritance tax for farms until 2027. In its Efra said the delays would also allow 'vulnerable farmers' more time to seek professional advice. From April 2026, agricultural assets worth over £1 million will be subject to a 20 percent inheritance tax rate. This is half the usual 40 percent rate, but farms were previously exempt from inheritance tax. In its report, Efra raised concerns that the plans laid out in last year's Autumn Budget were made without a consultation, impact assessment, or affordability assessment. 'The lack of proper evaluation of the impact of these changes means that the scale and nature of its impact on family farms, land values, tenant farmers, food security and farmers in the devolved administrations is disputed and unclear. This comes with a considerable risk of negative unintended consequences,' the group of MPs said. Related Stories 3/26/2025 10/31/2024 As such, the reforms 'threaten to affect the most vulnerable,' including those who are older and whose farming is less profitable. The committee recommended postponing the announcement of final reforms to agricultural property relief (APR) and business property relief (BPR) until October 2026, to come into effect in April 2027. Alternatives The Labour government had said it brought in the change to stop wealthy investors attempting to avoid paying inheritance tax by buying farmland, which also impacts the price and availability of land for new entrants into farming. The committee said that while it agrees in principle with reforming APR and BPR to 'close the loophole,' experts had proposed other methods to reform taxes which the government should consider. These include increasing the tax-free APR/BPR combined cap to £20 million, but introducing a predetermined 'clawback period,' during which time if any land is sold after being passed on, charges will be applied. This is similar to a proposal put forward in February by the National Farmers' Union. The union Closure of SFI 'Affected Trust' Efra also criticised the sudden closure of the Sustainable Farming Incentives (SFI) programme, which it said 'affected trust in the Government and has left many farmers without the funding they expected and at risk of becoming unviable in the period before the next scheme is introduced.' The SFI offered financial incentives to farmers to adopt environmentally-friendly land management practices aimed at improving soil health and water quality and supported actions that promote biodiversity, such as encouraging bees and other pollinators. There are currently around 37,000 SFI agreements in place. However, the scheme was Tractors are parked on Whitehall in Westminster in protest by farmers over the changes to inheritance tax rules in London, on Dec. 11, 2024. Yui Mok/PA Wire But earlier this week, the government made a Addressing MPs on Monday, minister for food security and rural affairs Daniel Zeichner blamed a message in the application system 'shown in error,' which promised that Defra would give farmers six weeks' notice if the department needed to close applications. The government has said it is planning to reform the SFI scheme. Rebuild Trust Efra committee Chairman Alistair Carmichael called on the government to 'take our recommendations seriously' in a bid to rebuild trust and confidence in the farming sector. The Liberal Democrat MP 'The Government, however, seems to be dismissing farmers' concerns and ignoring the strength of feeling evidenced in the months of protests that saw tractors Children ride toy tractors in Parliament Square as demonstrators attend a farmers rally in London, on Nov. 19, Epoch Times contacted the Treasury for comment, but the department did not respond. The government has A spokesperson had said: 'With 40 percent of agricultural property relief going to the 7 percent of wealthiest claimants, we made the decision to ensure the relief is fiscally sustainable. 'Around 500 claims each year will be impacted and farm-owning couples can pass on up to £3 million without paying any inheritance tax—this is a fair and balanced approach.'
Yahoo
21-05-2025
- Health
- Yahoo
Fury as farmers told inheritance tax raid will ‘fund mental health hubs'
Labour has sparked further fury from farmers after confirming its 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. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Yahoo
21-05-2025
- Health
- Yahoo
Fury as farmers told inheritance tax raid will ‘fund mental health hubs'
Labour has sparked further fury from farmers after confirming its 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.
Rhyl Journal
21-05-2025
- Business
- Rhyl Journal
Thames Water drops bonuses due for bosses after Government criticism
Mr Reed confirmed the proposals had been dropped during an Environment, Food and Rural Affairs (Efra) committee session with MPs on Tuesday. Earlier in the day, Thames Water's chairman admitted to incorrectly stating that the so-called retention plan was 'insisted upon' by the company's lenders. This was set to amount to 50% of senior bosses' salaries, leading to them getting £1 million on top of their annual salaries and regular bonuses. The payments were linked to Thames Water securing a rescue loan earlier this year that could reach £3 billion to stave off collapse. Mr Reed told MPs that Thames Water had been 'trying to circumvent' upcoming rules that can ban water companies from paying bonuses, by 'calling their bonuses something different so they continue to pay them'. 'I'm very happy indeed that Thames have now dropped those proposals,' he said. 'It was the wrong thing to do. It offends against their own customers' sense of fair play. Asked if he was confirming Thames will not be making the retention payments, he said: 'They won't be doing that. 'The Government will take any action necessary to prevent them trying to circumvent the ban that we've now tried to put in law. They've now withdrawn their proposal to make those payments.' A spokesman for Thames said: 'It has never been the Thames Water board's intention to be at odds with the Government's ambition to reform the water industry.' 'Following recent discussions the board has decided to pause the retention scheme and await forthcoming guidance from the regulator' in relation to its new rules, he added. Thames' chairman Sir Adrian Montague said he may have 'misspoken' when he said the group's creditors 'insisted' upon the retention incentives, when quizzed on the struggling water firm's turnaround at an Efra committee session last week. In a letter to the committee, Sir Adrian wrote: 'I appreciate that in the heat of the moment I may have misspoken when I stated that the creditors insisted on the management retention plan.' Thames Water is England's biggest water firm and supplies around 16 million households across London and the South East. The company has been at the centre of growing public outrage over the extent of pollution, rising bills, high dividends, and executive pay and bonuses at the UK's privatised water firms. Downing Street said on Tuesday that Thames Water bosses should not be receiving bonuses. The Prime Minister's official spokesman said: 'Water bosses rewarding themselves for failure is clearly not acceptable and ministers are clear that, after presiding over years of mismanagement, Thames Water should not be handing itself bonuses. 'The new Ofwat powers that are set out in the Water Act and will be coming into effect shortly will be applied retrospectively, meaning that they apply to Thames Water, just as they will any other company.' The regulator's new rules mean it can ban bonus payments to water bosses if they fail to meet standards to protect the environment, their consumers, and their company's finances. It also means it could block payments funded not just by customer money, but also by lenders and shareholders. Thames Water has said the retention incentives are different to performance-related bonuses, so are not covered by the rules, and will be funded by lenders.
ITV News
21-05-2025
- Business
- ITV News
Thames Water drops bonuses due for bosses after Government criticism
Thames Water has 'withdrawn' plans to pay senior bosses large bonuses linked to the water company securing a £3 billion emergency loan, Environment Secretary Steve Reed has said. Mr Reed confirmed the proposals had been dropped during an Environment, Food and Rural Affairs (Efra) committee session with MPs on Tuesday. Earlier in the day, Thames Water's chairman admitted to incorrectly stating that the so-called retention plan was 'insisted upon' by the company's lenders. This was set to amount to 50% of senior bosses' salaries, leading to them getting £1 million on top of their annual salaries and regular bonuses. The payments were linked to Thames Water securing a rescue loan earlier this year that could reach £3 billion to stave off collapse. Mr Reed told MPs that Thames Water had been 'trying to circumvent' upcoming rules that can ban water companies from paying bonuses, by 'calling their bonuses something different so they continue to pay them'. 'I'm very happy indeed that Thames have now dropped those proposals,' he said. 'It was the wrong thing to do. It offends against their own customers' sense of fair play. Asked if he was confirming Thames will not be making the retention payments, he said: 'They won't be doing that. 'The Government will take any action necessary to prevent them trying to circumvent the ban that we've now tried to put in law. They've now withdrawn their proposal to make those payments.' Thames' chairman Sir Adrian Montague said he may have 'misspoken' when he said the group's creditors 'insisted' upon the retention incentives, when quizzed on the struggling water firm's turnaround at an Efra committee session last week. In a letter to the committee, Sir Adrian wrote: 'I appreciate that in the heat of the moment I may have misspoken when I stated that the creditors insisted on the management retention plan.' Thames Water is England's biggest water firm and supplies around 16 million households across London and the South East. The company has been at the centre of growing public outrage over the extent of pollution, rising bills, high dividends, and executive pay and bonuses at the UK's privatised water firms. Downing Street said on Tuesday that Thames Water bosses should not be receiving bonuses. The Prime Minister's official spokesman said: 'Water bosses rewarding themselves for failure is clearly not acceptable and ministers are clear that, after presiding over years of mismanagement, Thames Water should not be handing itself bonuses. 'The new Ofwat powers that are set out in the Water Act and will be coming into effect shortly will be applied retrospectively, meaning that they apply to Thames Water, just as they will any other company.' The regulator's new rules mean it can ban bonus payments to water bosses if they fail to meet standards to protect the environment, their consumers, and their company's finances. It also means it could block payments funded not just by customer money, but also by lenders and shareholders. Thames Water has said the retention incentives are different to performance-related bonuses, so are not covered by the rules, and will be funded by lenders.
