Latest news with #FoodandRuralAffairsCommittee
Daily Record
23-05-2025
- Business
- Daily Record
Family farm inheritance tax changes slammed as "disastrous" by Perth and Kinross councillor
Bailie Claire McLaren said generational family farming businesses in Perth and Kinross - and across Scotland - were "reeling from this ill-informed tax" A Perth and Kinross councillor has slammed changes to family farm inheritance tax as "disastrous". At the 2024 Autumn Budget, Chancellor of the Exchequer Rachel Reeves announced agricultural property relief (APR) and business property relief (BPR) would be reformed. The Strathtay ward councillor spoke out after a report by Westminster's Environment, Food and Rural Affairs Committee called on the UK Government to delay implementing the changes and consider alternative reforms before justifying its final approach. Bailie Claire McLaren is the Scottish Liberal Democrat spokesperson on Agriculture and Rural Affairs. As part of the Autumn Budget, the UK Government announced that - as of April 6, 2026 - the 100 per cent inheritance tax relief on combined agricultural and business assets would be capped at £1 million. Thereafter landowners would access 50 per cent relief from inheritance tax and pay inheritance tax at a reduced effective rate up to 20 per cent, rather than the standard inheritance tax rate of 40 per cent. It would be payable in instalments over 10 years interest free. Full exemptions for transfers between spouses and civil partners would continue to apply. However, a cross-party report - published on May 16 by the House of Commons Environment, Food and Rural Affairs Committee said delaying implementing the controversial reforms "would allow for better formulation of tax policy and provide the Government with an opportunity to convey a positive long-term vision for farming". The report raised concern reforms were announced without adequate consultation, impact or affordability assessments and "threaten to affect the most vulnerable". The MPs have called on the UK Government to delay announcing its final agricultural property relief (APR) and business property relief (BPR) reforms until October 2026, to come into effect in April 2027. Responding to the committee's report, Perth and Kinross councillor Claire McLaren said: "The UK Government's disastrous family farm tax has been a hammer blow to many farms up and down the country. "Generational family farming businesses in Perth and Kinross and throughout Scotland are reeling from this ill-informed tax. Despite the resilience of the sector, this ill-informed tax has brought the sector to its knees. It is hoped this report has a positive impact with alternative approaches coming forward. "The Scottish Liberal Democrats have been urging the UK Government from the very start to axe the family farm tax and protect those farmers who have already been failed so badly by the Conservative Party's unfair trade deals, rocketing bills and plunging incomes. "It's about time the UK Government started listening to farmers — and that starts by admitting they were wrong and ditching the family farm tax."
Powys County Times
16-05-2025
- Business
- Powys County Times
Cross-party calls for Government to delay inheritance tax change
Ministers have been urged by a cross-party parliamentary group to delay reforms to farming inheritance tax until 2027 over concerns that the changes threaten to hit 'the most vulnerable'. The Commons Environment, Food and Rural Affairs Committee (Efra), which includes seven Labour MPs, said the Government had failed to properly consult on the policy, leaving its potential impact 'disputed and unclear'. From April 2026, a 20% inheritance tax rate will be levied on agricultural assets worth more than £1 million, which were previously exempt. This is half the usual rate of 40%. In a report published on Friday, Efra called on the Government to push back announcing its final agricultural property relief (APR) and business property relief (BPR) reforms until October 2026, to come into effect in April 2027. The group of MPs suggested that doing so would 'allow for better formulation of tax policy' and protect 'vulnerable farmers' who would have more time to seek professional advice. It criticised the Department for Environment, Food and Rural Affairs (Defra) for 'poor communication and last-minute decision-making following rumours and departmental leaks'. 'We are concerned however, that no consultation, impact assessment or affordability assessment was conducted before the announcement of the reforms,' the committee said in its conclusions. '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 and comes with a considerable risk of negative unintended consequences. 'As such, the reforms threaten to affect the most vulnerable, including those who are older or are farming less profitable or tenanted holdings.' The committee backed the Government's aim of overhauling APR and BPR to 'close the loophole' allowing wealthy investors to buy agricultural land to avoid inheritance tax, but said stakeholders and experts have proposed several alternative ways to reform these taxes. These include increasing the tax-free combined cap for both taxes to £20 million but with potential 'clawback period' in which any land sold after being passed on, tapering to avoid a cliff-edge if the property is sold. The Country Land and Business Association (CLA) has said this option could limit the damage to businesses and allow rural and other family firms to continue to make medium and long-term investment decisions. Efra also questioned the 'sudden' closing of the sustainable farming incentive (SFI), a green funding scheme for agricultural for farmers, which it said 'affected trust in Government'. The Government has since announced it will allow SFI applications that were in progress within two months of March 11 to progress with restrictions. Efra called for an alternative funding mechanism to be put in place no later than September 2025. Committee members include Lib Dem MPs Mr Carmichael and Sarah Dyke, Tory MPs Charlie Dewhirst and Sarah Bool, and Labour MPs Helena Dollimore, Jayne Kirkham, Andrew Pakes, Tim Roca, Henry Tufnell, Josh Newbury and Jenny Riddell-Carpenter. Efra chairman ad Liberal Democrat MP Alistair Carmichael said: 'The Committee has taken its work extremely seriously in developing this report and in agreeing our findings. 'There is an opportunity here to rebuild trust and confidence in the farming sector and I hope that the Government will take our recommendations seriously. 'The way in which the Government has behaved over recent months has clearly negatively affected the confidence and wellbeing of farmers.' He added that the Government appeared to be 'dismissing farmers' concerns' and ignoring the strength of feeling in the sector, despite a series of large-scale tractor protests outside the Houses of Parliament. 'We have seen that Defra's communications with farmers have been poor, with confusing and sometimes contradictory messaging,' Mr Carmichael said. 'Farmers ought to be the essential element in the Government's plans both to achieve food security and to restore and protect the environment… (they) urgently need clarity, certainty and advance notice of changes – they cannot be expected to rethink their businesses on a whim. 'It is essential that Defra focuses on rebuilding trust through good-faith communications with the sector.'
Yahoo
16-05-2025
- Business
- Yahoo
Cross-party calls for Government to delay inheritance tax change
Ministers have been urged by a cross-party parliamentary group to delay reforms to farming inheritance tax until 2027 over concerns that the changes threaten to hit 'the most vulnerable'. The Commons Environment, Food and Rural Affairs Committee (Efra), which includes seven Labour MPs, said the Government had failed to properly consult on the policy, leaving its potential impact 'disputed and unclear'. From April 2026, a 20% inheritance tax rate will be levied on agricultural assets worth more than £1 million, which were previously exempt. This is half the usual rate of 40%. In a report published on Friday, Efra called on the Government to push back announcing its final agricultural property relief (APR) and business property relief (BPR) reforms until October 2026, to come into effect in April 2027. The group of MPs suggested that doing so would 'allow for better formulation of tax policy' and protect 'vulnerable farmers' who would have more time to seek professional advice. It criticised the Department for Environment, Food and Rural Affairs (Defra) for 'poor communication and last-minute decision-making following rumours and departmental leaks'. 'We are concerned however, that no consultation, impact assessment or affordability assessment was conducted before the announcement of the reforms,' the committee said in its conclusions. '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 and comes with a considerable risk of negative unintended consequences. 'As such, the reforms threaten to affect the most vulnerable, including those who are older or are farming less profitable or tenanted holdings.' The committee backed the Government's aim of overhauling APR and BPR to 'close the loophole' allowing wealthy investors to buy agricultural land to avoid inheritance tax, but said stakeholders and experts have proposed several alternative ways to reform these taxes. These include increasing the tax-free combined cap for both taxes to £20 million but with potential 'clawback period' in which any land sold after being passed on, tapering to avoid a cliff-edge if the property is sold. The Country Land and Business Association (CLA) has said this option could limit the damage to businesses and allow rural and other family firms to continue to make medium and long-term investment decisions. Efra also questioned the 'sudden' closing of the sustainable farming incentive (SFI), a green funding scheme for agricultural for farmers, which it said 'affected trust in Government'. The Government has since announced it will allow SFI applications that were in progress within two months of March 11 to progress with restrictions. Efra called for an alternative funding mechanism to be put in place no later than September 2025. Committee members include Lib Dem MPs Mr Carmichael and Sarah Dyke, Tory MPs Charlie Dewhirst and Sarah Bool, and Labour MPs Helena Dollimore, Jayne Kirkham, Andrew Pakes, Tim Roca, Henry Tufnell, Josh Newbury and Jenny Riddell-Carpenter. Efra chairman ad Liberal Democrat MP Alistair Carmichael said: 'The Committee has taken its work extremely seriously in developing this report and in agreeing our findings. 'There is an opportunity here to rebuild trust and confidence in the farming sector and I hope that the Government will take our recommendations seriously. 'The way in which the Government has behaved over recent months has clearly negatively affected the confidence and wellbeing of farmers.' He added that the Government appeared to be 'dismissing farmers' concerns' and ignoring the strength of feeling in the sector, despite a series of large-scale tractor protests outside the Houses of Parliament. 'We have seen that Defra's communications with farmers have been poor, with confusing and sometimes contradictory messaging,' Mr Carmichael said. 'Farmers ought to be the essential element in the Government's plans both to achieve food security and to restore and protect the environment… (they) urgently need clarity, certainty and advance notice of changes – they cannot be expected to rethink their businesses on a whim. 'It is essential that Defra focuses on rebuilding trust through good-faith communications with the sector.' The Government has been contacted for comment.
Daily Mirror
13-05-2025
- Business
- Daily Mirror
Boss of Britain's biggest water company issues warning for 16 million customers
The boss of under fire Thames Water - which supplies 16 million customers - has warned it may have to impose restrictions this summer after the dry spring. Chris Weston revealed the UK's biggest supplier has already upped its drought preparation plans, which meant reminding customers about the importance of conserving water. 'I am confident that we won't run out of water,' he told a committee of MPs. 'I am not confident that we won't have to restrict usage because that will depend on what the weather does and what rainfall happens between now and the summer.' It comes as the UK has experienced unseasonably parched conditions for much of the year, with England and Wales having their driest March conditions since at least 1961. Given it is only May, there are concerns about reservoir levels and whether, if we have another very dry summer, hose pipe bans will be imposed in some areas. Mr Weston, giving evidence to the Environment, Food and Rural Affairs Committee, insisted that its reservoirs were 94% full. 'We are prepared as best we can be for a drought event', he said. He said the company has four levels of drought preparedness, and had recently moved from zero to one. While Mr Weston stressed it was working hard to avoid restrictions, it was pointed out that Thames was losing 56 mega-tonnes of water a day through leaks. Meanwhile, work on a new reservoir - in Oxfordshire - is not due to start until 2028, and would not be ready until well into the next decade. Meanwhile, Britain's only water desalination plant will spend another summer out of action. The Thames Water-owned plant in Beckton, east London, is supposed to turn salty seawater into fresh drinking water for hundreds of thousands of households during a supply crisis. Mr Weston criticised the previous decision to invest in the facility. Across the country, reservoirs are only 84% full. The lowest are reportedly Thirlmere and Haweswater in the Lake District, which are only 58% full and dropping by as much as 2% a week. United Utilities, which manages water resources across the northwest, is already urging customers to use less water. It came as Mr Weston used the appearance before MPs to blast Thames' former bosses and owners. "It is a big ship to turn around,' he told MPs, adding: 'This has been decades in the making, the crisis that we face at Thames, and I think all actors have a role to play in this. The company and management got it wrong. Five chief executives in five years is not a recipe for success.' Mr Weston also slammed previous owner Australian bank Macquarie, which loaded Thames with huge debts. 'That will have exacerbated the situation,' he said. 'That will have contributed to the problem. It stresses the organisation.' However, he was also quizzed by the chair of the committee about why he took a £195,000 bonus when he started, part of a £2.3million a year package. 'My remuneration was agreed with the board,' he said, while admitting 'It was not the reason but it was a reason for me joining Thames.' Thames Chairman Sir Adrian Montague said: 'We realise there is a vast amount to be done to bring the performance up to scratch and that we are letting customers down. We are starting to see real progress. We are seeing green shoots.' Mr Weston said investment was going into taking pollution incidents, including raw sewage released into rivers. There were 469 such incidents last year - up from 350 the previous year - including 33 that were classed as serious. "No-one at Thames comes to work to cause leakage and everyone wants to try and minimise that as much as possible," he said.
BBC News
04-04-2025
- Business
- BBC News
Devon and Cornwall fishers fear defence talks could hurt industry
Fishing industry leaders have said they are concerned defence negotiations with the EU could lead to the bloc's fishing vessels having increased access to UK issue was raised by MPs at an Environment, Food and Rural Affairs Committee meeting which heard the fishing industry was not "a bargaining chip" that could be "traded against defence".A key trade agreement between the UK and the EU is due to be reviewed in government insisted talk about fishing rights being linked to discussions about defence was pure speculation. Chris Ranford, chief executive of the Cornish Fish Producers Association, said: "It's really important our government stand up to this - we see it as bullying tactics."We have something really important in the UK - our fishing waters are highly productive."It's clear they want access attached to this defence contract but our government really needs to stand up for the fishing industry."In a Westminster Hall debate on fishing quota negotiations on 26 March, Andrew George, Liberal Democrat MP for St Ives, said: "The fishing industry has often been used as a pawn - a bargaining chip. It would be a great pity if that happened again."Caroline Voaden, Liberal Democrat MP for Totnes, said: "We should not allow the defence of Europe and the security of our nation to be negotiated against the fishing industry."Aphra Brandreth, Conservative MP for Chester South, said: "As the government have said, food security is national security, and we cannot have our fishing communities and fishing stocks traded against defence in any way." 'Lots of speculation' EU leaders have backed plans to jointly borrow €150bn (£126bn) to lend to EU governments for military at an Environment Committee on Tuesday, farming minister Daniel Zeichner said: "The French will say what they will say, but we are absolutely determined to stand up for the interests of the UK fishing industry."I wouldn't believe everything that is rumoured around an issue like this, because obviously there is lots and lots of speculation, but of course, we have discussions, because the transitional period comes to an end in the middle of next year. But no decisions have been taken and there is no linkage."I'm absolutely determined we get the best possible outcome for UK fishers because they're a very important source of food supply."
