Stuart Anderson MP has renewed his calls on the government to scrap the Family Farm Tax. Almost a thousand residents across South Shropshire have signed a petition on the UK Parliament website, calling for the inheritance tax relief to be retained.
The petition, which launched in November, has to date amassed a whopping 148,000 signatures. This includes 978 signatures from South Shropshire and is being debated in Parliament on 10th February 2025.
South Shropshire is the highest constituency represented in the petition, giving weight to Stuart's campaign to axe the tax on family farms. The change was announced by the Chancellor at the Autumn Budget in October and has faced fierce opposition since.
It means that 20% inheritance tax will be charged on estates with business and agricultural assets worth more than £1 million. Analysis published by the National Farmers' Union shows that 75% of family farms are above the £1 million threshold.
The policy was introduced in the Inheritance Tax Act 1984, to protect Britain's family farms from being sold and broken up. Ahead of the Budget, Stuart had called on the government to rule out any changes to the reliefs. He warned Ministers that doing so would threaten food security.
Stuart became one of the first MPs to call out the decision after the tax hike was announced at the Autumn Budget. In November, Stuart then joined thousands of farmers gathered outside Parliament to protest against the tax.
In December, he then helped fellow MPs force a vote on the subject in Parliament. Stuart said that the reliefs ensured family farms could be handed down to future generations, giving them confidence to carry on producing food and delivering environmental benefits after a farmer's death.
The petition states that the tax will "devastate farms nationwide, forcing families to sell land and assets just to stay on their property." It adds the changes will "harm UK farming deeply, with some farmers predicting their families will be forced out within two generations."
In the petition, signatories say: "We think the government is framing the policy around the targeting of rich landowners, but we believe this policy will affect farming families of all sizes." Shropshire has the highest number of farm holdings in England of any county, forming nearly 20% of enterprises.
Concerns have been raised the proposed reforms would only cover farms of up to 67 acres, since farmland is valued at an average of £10,000 per acre. Meanwhile, the average farm size in England is 217 acres, valuing the land alone at £2.17 million.
With average farm business income in 2022/23 standing at £96,100, it means that the cap would hurt agricultural businesses that are asset-rich but cash-poor – with knock-on effects on business investment and, in some cases, the viability of the whole operation.
Industry has added that this could result in higher food prices. The price of a loose aubergine or a cucumber could go up by 20p, while packs of peppers could rise by 35p, for example.
Stuart Anderson MP said:
"Farmers are the backbone of rural communities like South Shropshire. Yet, they are under immense pressure. They have just faced one of the worst harvests on record and the wettest January in fifteen years. The government's plan to reduce inheritance tax relief for farmers will only worsen this crisis, tearing up family farms across the country. Having warned the Government against this policy ahead of the Autumn Budget, I am shocked it is still being proceeded with. I have continued to raise the need to support our farmers at every possible opportunity. That this petition against the Family Farm Tax has gained almost 1,000 signatures from South Shropshire alone demonstrates the real strength of local support. Farmers need the continued certainty that these reliefs provide to carry on producing their high-quality food and being the stewards of our natural environment. Their work is vital for our national security, and I hope that the government will recognise this before it is too late."
