Carmichael calls for broad review of farm inheritance tax policy in Urgent Question
Orkney and Shetland MP, Alistair Carmichael, has today in Parliament called on the government to broaden their consultation on changes to farm inheritance tax, and have a “sensible debate” on the policy. Speaking during an Urgent Question following an Office for Budget Responsibility report on the inheritance tax changes, Mr Carmichael noted the possible consensus on a new approach which would protect family farms while targeting the super-rich. He also commented on the news that three major supermarkets have come out to publicly oppose the policy change.
Mr Carmichael is Chair of the House of Commons Environment, Food and Rural Affairs Select Committee.
Speaking in the House, Mr Carmichael said:
“One of the witnesses to the Select Committee told us that the changes ‘hit the people they say they are protecting and protect the people they say they are hitting’. It is difficult to improve on that as an analysis on what is proposed.
“It really doesn’t have to be like this. There is a sensible debate to be had around reforming inheritance tax that would stop the super-rich from sheltering their wealth while still protecting family farms.
“HMRC have their technical consultation coming up. Why doesn’t the minister agree to broaden the terms of that engage with the farming communities, and find a way that actually does protect family farms and gets at those who are sheltering their wealth in land?”
Responding for the government, Exchequer Secretary to the Treasury, James Murray MP, said:
“The policy that we are implementing includes generous provisions to protect family farms. That’s in addition to existing nil-rate bands that people can access as part of a general inheritance tax scheme. We think that strikes the right balance between raising public funds and protecting family farms.”
Reacting after the exchange, Mr Carmichael said:
“It feels as though the government is in denial about the problems with their inheritance tax plans. They do not seem able to engage with the valid and well-founded criticisms from farmers, from tax experts and from the public. Sticking their heads in the sand will not solve anything.
“What farmers are asking for is not unreasonable – an expanded technical review into the policy. The government can and should cede ground here. There is broad consensus around closing loopholes used by the super-rich, but the government’s approach simply does not work.”
On news that Tesco, Aldi, and Lidl have now backed calls to rethink the inheritance tax plans, Mr Carmichael added:
“The fact that three major supermarkets have now come out against the government’s plans should be a further sign of how badly wrong they have gone. I have not been shy in the past about critiquing supermarkets’ hardball tactics with farmers on food prices but on this they are on the money – ministers should take heed and accept a pause.”