Prime Minister has undermined Treasury case for farm inheritance tax changes – Carmichael

Orkney and Shetland MP and Chair of the Environment, Food and Rural Affairs Select Committee, Alistair Carmichael, has today quizzed the Prime Minister Keir Starmer on the decision to increase inheritance tax on agricultural property and the impact on family farms. 

Speaking during the first session of the Liaison Committee of the new Parliament, Mr Carmichael asked the Prime Minister about the aims of the policy and whether it was intended to target the “super-rich” buying farmland to avoid tax. 

The Prime Minister stated that the primary goal of the measure was to raise revenues and that no particular group was targeted, arguing that “what the very wealthy do with their money within the rules is a matter for them”. Asked if he would encourage the Chancellor of the Exchequer Rachel Reeves to meet with farming unions to discuss the policy, Mr Starmer said “the Chancellor will manage her own diary”.

Speaking after the session, Mr Carmichael said:

“The Prime Minister’s answers were quite revealing. He has undermined the case made by Treasury and DEFRA ministers, who claimed that the inheritance tax changes were about tackling the “Jeremy Clarksons” and “James Dysons” of this world. To hear it from the Prime Minister, it is just about raising money. Far from targeting the super-rich, he could not have been clearer that if farmers are caught and family farms have to be sold then that is fine by him.

“If that truly is the government position on family farms – and the Prime Minister ought to be the one to know – then it is seriously concerning. For someone who has repeatedly said that “food security is national security” he does not seem altogether concerned about the people at the heart of our food production.

“Six months on from the general election the Prime Minister looks increasingly out of touch from ordinary people, especially those living in rural communities. 

“At the very least he needs to press his Chancellor to meet with farming representatives so that they can make their case properly. Farmers are ready and willing to meet ministers in the middle and find common ground to fix this flawed policy – it is up to the government to respond in kind.”