Changes to inheritance tax on farms could have a devastating impact on family farms in West Sussex, a council has warned.
West Sussex County councilors expressed concerns that inheritance tax changes announced in Budget 2024 could predominantly affect family farms, but have no impact on landowners who “invest in land simply to avoid tax”.
Council leader Paul Marshall will now write to the government calling on Defra to make a U-turn on tax changes to support “sustainable land management”.
After a debate on Friday, a spokesman for West Sussex County Council said Cllr Marshall would “express the council's concerns that the changes proposed in the current 2024 Budget will have a devastating impact on many family businesses and will have little or no impact on those who do.” “We have people who invest in land just to avoid taxes.”
The council added that its local nature recovery strategy makes it clear that farms that remain family-owned are “better able to continue practices that support wildlife corridors, habitat conservation and sustainable land management”.
It added that family-run farms would be better able to support farmland in the South Downs, Chichester Harbor and the High Weald National Landscapes in the county.
Farmers across Sussex have protested against changes to inheritance tax that would remove the tax-free status of farms.
Instead, farms would receive a tax-free allowance of £1 million on the value of the farm.
LR: Andrew Flake, Pamela Peacock, Jerry Flake and Jenny Flake, two generations of the Passmore family who run Coombes Farm near Lancing (Image: Jenny Flake)
Three generations of the Passmore family, who own Coombes Farm in Lancing, were among those who took to the streets with their tractors to protest against the proposed changes.
Environment Secretary Steve Reed held a phone call with business and industry leaders last week in which he said work was underway to develop a new food strategy to provide healthier and more accessible food to combat obesity and improve health.
It would also strengthen resilience to climate shocks, drive investment in the food and drink sector and support the “Agriculture Roadmap” to reduce the impact of agriculture on nature and wildlife, decarbonise the sector while helping it transition. officials said.
A government spokesperson said: “Our cross-government food strategy will ensure our food system can continue to feed the country, achieve its potential for economic growth, protect the planet and feed individuals, now and into the future.”