CORNWALL Council is set to debate a motion titled "Supporting Our Farmers," to challenge the government’s controversial 2024 Autumn Budget changes.
These changes, which include restrictions to Agricultural Property Relief (APR) and Business Property Relief (BPR), are being called a ‘Family Farm Tax’ by some councillors.
Cornwall has a proud history of supporting its farmers and a deep connection to the land they farm. However, the changes announced in the budget will impose an effective 20 per cent tax on agricultural assets valued over £1-million. The government claims this threshold will protect 75 per cent of farms, but the National Farmers’ Union (NFU) warns the true impact could be far greater, potentially affecting up to half of all working farms.
The NFU strongly believes this is a significant miscalculation, leaving many farmers vulnerable.
APR has historically encouraged investment in farming by ensuring farmland is actively farmed.
The NFU president has stated: "Farmers are rightly angry and concerned about their future and for the future of their family farms, having been reassured by ministers in the lead-up to the budget that APR and BPR changes were not on the table."
At a time when energy prices and costs are already soaring, these changes add further financial strain. Comments by Secretary of State for Environment, Food and Rural Affairs, Steve Reed, that farmers must “do more with less” have deepened fears in the farming community.
The council’s leader will write to the Secretary of State for Environment, Food and Rural Affairs and Cornwall’s six MPs, urging the government to reconsider its decision and halt the tax.
The Cabinet Member for Environment and Climate Change will consult with local farmers and community representatives to explore what support the Council can provide during this challenging period.
The motion calls for an update on actions taken since May 2023, when Cornwall Council passed a cross-party motion titled “Supporting Cornwall’s Farmers.” This motion included commitments to supply local produce at events, promote local shopping, and encourage diversification opportunities for farmers.
Cllr Nick Craker, Conservative Councillor for Liskeard, and proposer of the motion, commented:
"The Labour government’s changes to inheritance tax threaten the survival of family farms, which are crucial to Cornwall’s heritage, economy, and food security. This tax is an attack on rural life, and Cornwall Council must stand united with our farmers in opposing it.
“The council’s vote on this motion will be a pivotal moment in the fight to protect Cornwall’s farming communities and preserve their future for generations to come.”
Motion seconder, Conservative Cllr James Mustoe (St Austell) said:
“As a councillor who has represented farmers and rural communities for the past ten years, I have never known so many people, not just the farmers and their families, but the many businesses that work with and depend on our farms as well, to be upset and outraged at what the government is proposing.
“It is good to see cross-party support for our motion coming from Cornwall Council, and we hope this will translate into a strong vote at Full Council next Tuesday to back this action, support our farmers, and call on the government to change course as soon as possible.”
Commenting, Linda Taylor, Leader of Cornwall Council, said:
“With Cornwall’s own Labour MPs seemingly out of step with the people they are supposed to be representing, and trying to justify this blatant attack on our farmers by a Government that is either ignorant or vindictive, it is only right that Cornwall Council makes a strong stand on behalf of everyone in Cornwall who farms who works in industries relating to farming. I am pleased to be supporting this motion and hope councillors will come together to show the Labour government that they need to stop their harmful actions, now.”