This marks the latest development in the NFUâs Stop the Family Farm Tax campaign during a week which has seen all major UK retailers publicly state their concerns, and the OBR (Office for Budget Responsibility) confirming the NFU's fears about the impact on elderly farmers.
In the , Mr Carmichael asked for the Prime Minister to meet with him urgently to discuss potential mitigations to the changes as well as the âdeep concernâ fuelling âlow confidence and morale levels in the agricultural and wider rural communityâ.
The letter compiles evidence from a number of sources, including Prime Minister Sir Keir Starmerâs responses to the Liaison Committee on 19 December, where the PM stated that the purpose of the measures was to âraise revenue in the Budgetâ, and evidence given by NFU President Tom Bradshaw alongside other farming leaders and tax experts which contradict the Treasuryâs figures.
Mr Carmichael writes: âMy Committee heard compelling evidence on 11 December from tax experts and representatives of the farming community that many farms had already consulted with financial professionals and the scope of the changes mean that significantly more than the Treasury estimate of 500 farms per year will be impacted.â
The MP later adds that there is âsufficient time between now and the 2026 Finance Bill to adapt the proposals to fulfil your intention to âprotect the family farmâ while better enabling the Government to meet its fiscal objectivesâ.
He writes that he supports the messaging in the letter sent earlier this month from all four UK farming unions to the Chancellor, calling for a full and comprehensive consultation to include; the impact of the changes on farming profitability and the viability of farming businesses, the options for older individuals for whom, until now, the most effective tax advice had been to hold their farms until death, and the impact on the tenanted sector.
Time for ministers to face facts
Responding to the news, NFU President Tom Bradshaw said: âItâs great to see the Efra Committee taking action after the NFU gave evidence on the devastating impacts of the family farm tax last month, especially its support for the UK farming unionâs call for a consultation on the issue.
âMore and more people are opposing this policy. Every single UK supermarket has outlined concerns about the policy this week and now the cross-party Efra Committee has found that the Treasuryâs data behind it is contradictory.
âWith our own research indicating that 75% of family farm businesses could be affected and the OBR confirming that it would leave elderly farmers horribly exposed, surely it is time for ministers to be honest and admit that this policy needs to be looked at again.â
âItâs great to see the Efra Committee taking action after the NFU gave evidence on the devastating impacts of the family farm tax last month.â
NFU President Tom Bradshaw
âIt doesnât have to be like thisâ
The letter was sent as Shadow Defra Secretary Victoria Atkins tabled an urgent question in the House of Commons on Thursday, following the news that new OBR analysis found that the measures will mean elderly farmers have no time to get their affairs in order.
As part of her urgent question, the Shadow Defra Secretary reminded the House of the widespread opposition to the proposed changes with UK supermarkets now backing the NFUâs campaign calls.
Referencing his own life on a family farm, Conservative MP for Broadland and Fakenham Jerome Mayhew called on the government to show humility and consult on the best way forward to tackle tax avoidance without threating British farmers and food security.
Alistair Carmichael concluded âit really doesnât have to be like thisâ, while sharing evidence from the Committeeâs inquiry and urging the Minister to engage with and protect our farming communities.
