Inheritance tax changes could cripple Yorkshire’s rural economy
The Government has got it badly wrong with its proposed changes to inheritance tax, which could not only cripple the rural economy but also put food security at risk.
Farmers have made their discontent clear at the decision to cut inheritance tax (IHT) reliefs. That is because they know just what is at stake. Agricultural businesses could be wiped out by increased costs.
This will also have a knock on effect on Yorkshire’s economy. The region is the proud home of a vibrant agricultural sector. Its farmers play a key role in putting food on the nation’s table.
But if the Government presses ahead with this ill-judged policy then Yorkshire could shed 16,500 jobs and have millions of pounds wiped from its economy, according to a study commissioned by Family Business UK and conducted by independent consultancy CBI Economics.
Labour has rightly prioritised the economy. Societal problems cannot be fixed if the country’s economy is ailing.
However, this research, supported by the Country Land and Business Association (CLA), shows that its family farm tax flies in the face of economic growth.
As Harriet Ranson, CLA’s director for the North, says, “The government’s case is collapsing under increasing evidence that shows these reforms are based on ideology – rather than actual tax take, will inflict lasting damage on farms and family businesses across Yorkshire and beyond.”
Prior to the general election last year, Labour made much about the importance of food security but thus far it has done the opposite of ensuring the nation is not left to the whims of imports.
The Government needs to look at the mounting evidence and at the very least put a pause on this deeply unpopular and misguided policy, then work constructively with farmers to protect agriculture in this country.