The OBR (Office for Budget Responsibility) oversees government fiscal policies and published a on the costing of changes to agricultural and business property relief.
Despite repeated promises before the election not to do so, the government scrapped IHT (inheritance tax) reliefs for farms, designed to enable family farms to be passed on to the next generation.
In its report, the OBR says that it is 鈥榟ighly uncertain鈥� whether the measures will raise the 拢500m the Treasury 鈥� which did not consult with anyone before launching the changes 鈥� claims it will raise.
The report goes on to say 鈥榠t is likely to be more difficult for some older individuals to quickly restructure their affairs in response to the measure鈥�.
鈥楢n appalling position鈥�
NFU President Tom Bradshaw said the report confirms what the NFU has 鈥渞epeatedly warned鈥� since the Autumn Budget was unveiled 鈥� that it will be older farmers who will be hardest hit by the government鈥檚 misguided family farm tax.
He added: 鈥淥ne minute they were advised to keep their farms until death to pass them on to the next generation, the next they鈥檙e left knowing that if they live beyond April 2026 when the measures come in, their children may have to break up or sell the farm.
鈥淲hat an appalling position to put elderly people in.
鈥�Surely it is time for ministers to accept this policy needs the proper consultation it never had?鈥�
NFU President Tom Bradshaw
鈥淚 outlined the terrible human impact on elderly farmers explicitly when I met the Prime Minister, and in a personal letter I wrote to Chancellor Rachel Reeves and again in front of the recent Efra Select Committee.
鈥淎t every stage the government has consistently ignored what we have been telling them about this abhorrent policy. Is it now going to ignore the OBR too?
鈥淎nd, given the OBR says it鈥檚 highly uncertain it will raise the expected amount of money either, surely it is time for ministers to accept this policy needs the proper consultation it never had?鈥�
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