Political Stonewalling on Budget Measures is Not Good Government

The Tenant Farmers Association (TFA) has criticised Treasury Ministers for political stonewalling against consideration of any reasonable changes to the Budget measures announced by the Chancellor of the Exchequer in October 2024.

Since the Budget statement on 30 October, the TFA has been in ongoing and detailed discussions with Treasury, HMRC and DEFRA officials, including DEFRA Ministers. However, the Treasury Ministerial team has afforded the TFA only one short meeting with the Exchequer Secretary to the Treasury with the Chancellor of the Exchequer herself nowhere to be seen.

TFA Chief Executive, George Dunn, said “It is fair to say that our discussions with Government, particularly at official level, in the wake of the October Budget were productive, open and good-natured. There appeared to be a willingness from Government to understand the concerns of the farming industry about the changes proposed to Agricultural and Business Property Inheritance Tax reliefs (APR and BPR) and a willingness to consider where incorrect assumptions had been used in developing those proposals. Equally, there was a willingness from the farming industry’s perspective to understand the policy objectives behind the changes and to offer better routes to achieve those goals.”

“We are now at the stage were everything that could be said has been said and we now need Ministers to show the necessary leadership in taking the next steps. With a technical consultation planned for this month in respect of the impact of the changes on Trusts, that would represent an ideal time for the Government to look at some of the issues raised by the industry without specific commitment at this stage. However, that needs a level of political willingness which is currently absent. Such stonewalling is not a good way to conduct government. Good Government is about understanding legitimate concerns and finessing policies accordingly. The stubborn refusal against making any changes will be a detriment to us all,” said Mr Dunn.

The TFA has suggested a list of technical issues that should be included within the January consultation as follows:
* Understanding the right level of the APR/BPR threshold.
* Whether the APR/BPR threshold should be transferable between spouses and civil partners.
* Necessary changes to the taper on the Inheritance Tax residence nil rate band on estates valued at more than £2 million.
* A provision allowing exempt transfers on a shorter timeframe for older individuals.
* Whether landlords letting secure tenancies of 10 years or more should have access to a higher zero rate band in line with the proposals contained within the Rock Review into agricultural tenancies.

“We understand that it is the Government’s intention both to raise revenue and to stop cash rich individuals from acquiring assets to avoid tax. Alongside the proposals which the TFA has tabled, the Government should be looking to restrict the availability of Capital Gains Tax Business Assets Rollover Relief as the principal means to achieve its policy goals. However, that will need to await a further fiscal event. We have shown willingness to work within the bounds of what we understand Government policy to be. The Government should show its strength by being willing to look at the reasonable adjustments we have proposed rather than displaying its weakness by using its Parliamentary majority to force its MPs through the voting lobbies on the back of a badly thought-out approach,” said Mr Dunn.