South Wales Central Conservative MS Andrew RT Davies has said comments from farming minister Dame Angela Eagle, confirming there will be no changes to the Treasury’s planned farms tax, prove the Government is “dangerously out of touch with Vale farmers”.
Speaking on BBC Radio Four Farming Today, Eagle said the Treasury “isn’t going to move” on the plans.
Under the changes, existing Agricultural Property Relief will be scrapped from April next year.
It will mean family farms will be subject to inheritance tax.
Mr Davies, who farms in the Vale, warned the move will “mark the death of farming as a family industry”.
He said the next generation of farmers would be forced to sell their farms unwillingly as they would not have the cash to meet the tax liability.
The consequence, he predicted, would see farms bought up by wealthy speculators, who see land as a financial asset rather than a means of feeding the nation.
Mr Davies said:
“Farming and agriculture are crucial to the local economy in the Vale.
“It’s not just about farmers, many suppliers and other associated industries rely on farming.
“But this new tax will kill the industry. The next generation of farmers will have no choice but to sell their farms, as they won’t have the means to pay the tax liability.
“The minister’s comments prove this government does not understand or care for the rural Vale.
“They must think again and drop this tax before it’s too late.”
ENDS
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