York MPs and political group react to farm tax changes

It comes after an announcement yesterday by the Department for Environment, Food and Rural Affairs that from the start of the next tax year, the farm inheritance tax relief threshold will increase from £1 million to £2.5 million.

In the Budget of October 2024, the full 100 per cent of tax relief was to be restricted to the first £1m of property, a reform which led to months of protests, including a number in York and North Yorkshire.

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York Central MP Rachael Maskell said: “While not having farms in my constituency, I am pleased that the Government has found a way forward to protect farmers who play a vital role in feeding the nation.

“I seriously advise Government to work with interested parties ahead of making policy announcements.

“When it works with people with lived experience it is able to produce good policy outcomes, yet when it ploughs ahead without consulting first, unnecessary stress is caused.

“I very much hope that the Government will now work with retail and hospitality businesses ahead of increases in business rates.”

A spokesperson for The Conservative Group on City of York Council said: “With low or no profit across many farms there was no way of paying the tax and farms which have been in families for generations would have been broke up and sold to billionaire investors and companies (mainly overseas) who would not pay the tax.

“The number of impacted farmers will now fall significantly, but not before huge worry and farmers making decisions to encash pensions and similar huge steps which looked the least bad option at the time.”

Group leader Cllr Chris Steward said the party welcome the Government “U-turn” but said it remained “too little too late”.

He said: “We believe all farms should be exempt from Inheritance Tax and there has been far too much worry amongst farmers who are now not affected but will in some cases have significantly changed their financial plans which now looks the wrong thing.”

York Outer MP Luke Charters said: “Yesterday’s news is very welcome and represents a much more positive outcome for farmers across York and North Yorkshire.

“I have listened very carefully during the many constructive conversations I have had with farmers across York Outer and played them back to Government.”

The Labour MP said he’d hosted farming families from Crockey Hill and Towthorpe in Parliament and thanked many other families who shared their experiences with him.

He said: “I have visited many family farms across the constituency, met regularly with the local NFU, and spent time with York’s thriving agritourism businesses, including York Maze.

“These conversations continue to shape the case I make in Westminster for a strong future for our farming communities.”