Carmichael challenges Prime Minister to pause family farm tax

Orkney and Shetland MP, Alistair Carmichael, has today challenged Keir Starmer to pause and rework his government’s tax hike on family farms, during Prime Minister’s Questions. Mr Carmichael highlighted a cross-party committee report which supported the government’s goal of tackling tax evasion but warned that the current proposals would harm family farms, and called for a one-year pause in the policy.

Mr Carmichael is Chair of the House of Commons Environment, Food and Rural Affairs Select Committee, which produced the report.

Speaking in the House of Commons, Mr Carmichael said:

“On Friday, the Environment, Food and Rural Affairs Select Committee published its report on the government’s vision for agriculture. The committee agrees with the government that land purchase being used to shelter wealth from inheritance tax is a problem that needs to be tackled.

“As a cross-party committee with a government majority, however, we took the unanimous view that the government’s current proposals for inheritance tax reform will catch too many family farms who will simply not be able to pay the bill. We are asking for the changes to be paused and reworked.

“Will the Prime Minister listen to the select committee and those on his own benches who want to tackle tax evasion and support the farmers who keep producing food for the nation’s table?”

Responding, the Prime Minister said:

“He knows the very limited impact of inheritance tax – only on farm of a very very high level – but he will also know the record amount of money we put in the Budget into farming, and he knows about the EU deal, which will massively help farmers selling into the EU market.”

Reacting after the exchange, Mr Carmichael said:

“The Prime Minister’s response will be a disappointment to farmers and to many on his own benches, who are convinced that the government should rethink the tax on family farms. There is cross-party – and cross-country – support for this policy to be paused and reworked.

“Throughout this campaign farmers have been clear that they are ready to work with the government to make a fair tax policy that protects family farms. It is the government that has refused to compromise – that must change.”