First Minister States Inheritance Tax is Stifling Scottish Farmers
John Swinney emphasized the need for central government to conduct impact assessments on its budget proposals affecting farmers in Scotland.
Scotland’s first minister voiced concern over the chilling effect of changes to inheritance taxes on Scottish farmers, leading to elevated levels of stress and uncertainty.
John Swinney criticized the Budget for neglecting the needs of rural communities and called for a tax system that facilitates the smooth transfer of farms between generations.
Addressing the issue, Swinney insisted that the UK government should urgently commit to carrying out and disclosing impact assessments on its budget plans concerning farmers and crofters (small farm owners) in Scotland.
Expressing disappointment over the lack of collaboration, Swinney said, “No matter the direct impact on businesses, it is essential for the Chancellor to consult with the Scottish Government before making decisions on such sensitive matters.”
Previously, farmers could pass on their land tax-free. However, recent Budget changes unveiled by Chancellor of the Exchequer Rachel Reeves have altered this exemption, resulting in an inheritance tax on combined business and agricultural assets exceeding £1 million.
Food Security
Amid these developments, Scottish Conservatives have urged the Treasury to reconsider the new tax, citing the potential detrimental impact on family farms.
Tim Eagle, the party’s rural affairs spokesman and a farmer himself, warned that many family farms could face significant challenges due to the changes in inheritance tax policies.
PA Media contributed to this report.
