NAIRN VOICES: ‘It’s a blue time to have voted red’, says Nairnshire farmer
by Claire Rhind, committee member of the Nairnshire Farming Society.
The budget has seen some expected changes to the taxation and financial decisions from our new UK government, but the new inheritance tax legislation for agricultural businesses is a lose-lose situation for everyone.
To summarise, any agricultural and business assets worth over £1 million will be taxed when handed down to the next generation following death. It doesn’t matter if the farm has been profitable or not – the next generation will inherit any debts or profits and accrue this new tax starting at £100,000 before the last reading of the will is even settled.
The saddest part of this new proposal is that the government are aware of the detrimental impact this will have on all it impacts, as they have given people 18 months to get their affairs in order and suss out how to protect farmland that has been worked for the land and its people for decades and/or generations.
Whilst to those who are not familiar with farming £1 million sounds like a lot, it is not a tangible lump sum of money that the farmer has been sitting on for a rainy day. If this was the case, there would be more farmers taking early retirement and buying a lovely villa in Spain or driving to the shops in Lamborghinis.
This is the value of buildings, land and equipment that is required to run a farm, but to pay off a large tax bill these will likely need sold to prevent them from being repossessed.
If the farmer owns their land, they could sell off plots for housing, then when their children have the same issue they could sell off plots to pay their bill, a family could continue this farce until they are left with a farm without enough land to work full time, and generations of knowledge and expertise will be lost.
If a farmer doesn’t own their land, there will be questions about how their land lord plans to proceed, this will be entirely out of the farmer’s hands.
As a next generation farmer, I am aware that there will be many conversations to be had with family in the coming months. The frustration in such changes from our new government is amplified by a harsh year, full of poor weather from planting right through to harvest.
Perhaps, if we went on strike, would we have had more luck with getting assistance from the government? Some farmers may feel like we already have been on strike, after days of being unable to lift crops in August and September. But animals still need fed and staff need paid, adapting is something farming has always taken pride in and strikes remain a luxury we cannot afford to partake in.
I didn’t expect my first little column to be so negative and scathing, when frankly I agreed with the masses that a change in Westminster was due. But this is a reminder that politicians will never stray from what they know - Labour will only support unions, Conservatives will only protect taxes, SNP will only want independence and the voters will only want change.
As we look forward, directing our energy onto other projects can allow for a pleasant distraction. If you want to see farms remain as family businesses and not see our beautiful countryside not turn into rush/ waste land or housing developments, then continue to support local.
Nairn has a variety of butchers, Swansons for fruit and vegetables, Western Hardmuir and Househill farm shops, and Nairn Farming Society and Nairn Young Farmers are hosting a Christmas Tractor Run on December 7 to bring some joy to the community and raise funds for charity.
Despite all this upheaval, farmers will always be resilient. Keir Starmer may not be in Number 10 forever, but our families will continue to farm our land for as long as we can.
