Labour’s Tax Plan ‘Will Break Up Family Farms’, Warns NFU Devon Chair

Up to three-quarters of family farms in a UK county are set to be impacted by Rachel Reeves' death tax, an expert has said.

David Chugg, the National Farmers Union (NFU) chairman in Devon told the Express that growers are making less than 1% profit, which is not enough in order to pay up. He said: "Regardless if you've got 10 years to pay inheritance tax, the money's not there to do it. Farmers do pay their tax, if they make a profit, they pay the tax. But there's not enough money being generated for that purpose, and to take a wage and revinvest, it's not doable."

Mr Chugg added: "It will end up potentially breaking up a lot of the family farms." When asked how many of these in the county could be affected, the Barnstaple sheep and arable farmer said between 60% and 70%.

"Obviously, I don't know every farmer, but what I'm picking up. I've said it before, and I feel like I'm repeating myself so much. There appears to me to be a complete disconnect at the heart of Government on how farming operates, on the lack of profitability.

Up to three-quarters of family farms in a UK county are set to be impacted by Rachel Reeves' death tax, an expert has said. David Chugg, the National Farmers Union (NFU) chairman in Devon told the Express that growers are making less than 1% profit, which is not enough in order to pay up. He said: "Regardless if you've got 10 years to pay inheritance tax, the money's not there to do it. Farmers do pay their tax, if they make a profit, they pay the tax. But there's not enough money being generated for that purpose, and to take a wage and revinvest, it's not doable."

Mr Chugg added: "It will end up potentially breaking up a lot of the family farms." When asked how many of these in the county could be affected, the Barnstaple sheep and arable farmer said between 60% and 70%. "Obviously, I don't know every farmer, but what I'm picking up. I've said it before, and I feel like I'm repeating myself so much. There appears to me to be a complete disconnect at the heart of Government on how farming operates, on the lack of profitability.

Farmers are crucial to preserving the countryside, Mr Chugg told the Express (Image: Getty)

"And that lack of profitability is not just in the last year or two, that's been years and years going back. Farmers are very proud people, they work the land, they enjoy what they do.

"We're proud of what we produce, we're proud of our standards. We have the best produce and food in the world."

He added: "Farmers are really proud of the landscape. To keep the green hills and all the countryside looking really nice for everyone, the public to enjoy, comes at a cost, and that's solely down to the farmers and landowners, and land managers. That's why that is."

Assets will have to be sold off, the local NFU chief warned.

"On economies of scale, it takes a lot to earn a little. So, if you have to sell on land or buildings, that farm then becomes potential unviable, and that's what my fear and worry is.

"All for a sum of money that runs the NHS for about a day and a half."

The farmer does not recognise the Government's estimates as regards how many farms it thinks will be impacted. Mr Chugg said: "I'm sorry, I just don't believe it."

Source: The Express