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Farmers should take their time when making decisions following the government’s Budget tax-raid, delegates were told at last month’s Autumn Farming Conference. Organised by... Experts explain Budget impact to conference

Farmers should take their time when making decisions following the government’s Budget tax-raid, delegates were told at last month’s Autumn Farming Conference.

Organised by accountants Larking Gowen in partnership with the Country Land and Business Association, the conference was held on 5 November at the All Saints Hotel, Fornham St Genevieve, Bury St Edmunds.

Larking Gowen partner Bruce Mason said farmers were justifiably angry at a swathe of Budget announcements which would have a huge impact on their businesses – despite pre-election pledges by the government.

Farming assets

Many farmers will be vastly out of pocket following the Budget decision to speed up the phase-out of the Basic Payment Scheme, tax pick-ups as though they are company cars and increase employers’ national insurance contributions.

All these announcements are on top of headline-grabbing changes to agricultural and business property relief which will see 20% inheritance tax imposed on farming assets worth more than £1m from April 2026.

“We need to be calm and take time over any decision-making,” said Mr Masson, mindful that much of the Budget detail was yet to emerge, including a technical consultation due to start in January. “There’s a lot of water to flow under the bridge.”

Conference speakers included Norfolk farmer Sam Steggles. He said: “The measures will have a huge negative impact going forward, knock £100,000 off our bottom line and affect succession planning.”

Direct support

Other speakers included Edward Vipond, director of Troston Farms in Suffolk. It would be impossible to make up the Budget shortfall, he said. “My job is to forget direct support, make best use of assets and not expose us to undue risk.”

Sally Key, director of financial planning at the Alan Boswell Group, suggested life insurance could help families cope with the impact of IHT. But it was important to take professional advice, she added.

Farm leaders are continuing to lobby Defra and the Treasury over the Budget fallout. The CLA, NFU and Tenant Farmers Association have warned government representatives the measures are simply unaffordable for many farms.

Profits from the conference are being shared between the You Are Not Alone (YANA) charity, which provides mental health support for rural communities; and RABI, which provides financial and emotional support to farming families.

Budget tips

• Avoid undue risk

• Seek good advice

• Plan succession

 

Trust in tatters after Budget ‘betrayal’

Fewer than one in four farmers are upbeat about the future following the government’s autumn Budget.

The Country Land and Business Association poll found that 18% of farmers are optimistic for the future of UK farming – a big drop compared to the 53% who said they were optimistic before the Budget.

Almost two-thirds (64%) of farmers say they are not optimistic, with 18% saying they are unsure. The survey was conducted in the week after the Budget, which was announced on Wednesday, 30 October.

The Labour Party gave repeated pre-election promises that it would not tamper with inheritance tax or alter agricultural property relief (APR). The Budget announced huge changes to both.

Promises broken

The survey results were announced that the Autumn Farming Conference. CLA East director Cath Crowther told the conference said: “The Chancellor’s recent actions broke all their pre-election promises.”

The CLA has rejected government claims that only 27% of farms and estates will be affected by changes to APR which will see 20% inheritance tax imposed on all farming assets over £1m from April 2026.

CLA deputy president and Norfolk farmer Gavin Lane painted a different picture. “We are completely gobsmacked – we had assurances that this wouldn’t happen, so as far as we are concerned, this has come out of the blue.”

Mr Lane added: “We estimate 70,000 farms could be affected by this tax at any one time, and therefore it will have a much broader, far-reaching impact on the rural economy, which is why we are actively contesting the Chancellor’s statement.”