A proposed motion over Labour’s inheritance tax (IHT) changes for farmers has been rejected by members of Cumberland Council.
Cumberland Council met to discuss the motion
Councillors met at the Civic Centre in Carlisle on Tuesday (January 14 2025) to consider the proposal which was put forward by councillors Trevor Allison (Dalston and Burgh, Conservative) and David Moore (Gosforth, Conservative).
The three hoped that the council would “note with concern the proposed changes to Inheritance Tax” announced by the Government in the recent autumn budget.
In addition, they hoped that members would back them and resolve to write to the Chancellor of the Exchequer to express its dismay with this sudden abolition of IHT relief, targeted on family farms and small businesses which analysts calculate will cost jobs and revenue in excess of the tax taken. (The tax relief dates back to 1984, when Mrs Thatcher’s government passed the Inheritance Taxes Act 1984).
Possible consequences of the abolition of tax relief?
Cllr Allison said he feared that the Government’s decision would lead to “foreclosure and the break up of farms” in the Cumberland area.
Cllr Moore said that with most farmers it was a vocation which meant they worked 365 days a year and added: “They are asset rich because land has a high value.”
He said that in this part of the country fell farming was a way of life and added that he disagreed with the “unfairness of this and the impact it is going to have on farms”.
It will only affect farms worth over 1 million pound
However, councillor Chris Southward (Denton Holme, Labour), the digital connectivity and customer focus portfolio holder, said there were various misconceptions about the policy as it applied to the first £1m and, above that, it was at a reduced rate which was payable over a number of years. He added: “The majority of small farms will not be affected.”
Councillor Jill Perry (Bothel and Wharrels, Green Party) said she opposed the motion because she felt it was right to “clamp down” on the wealthy who used farm ownership to avoid paying tax which she said was “acceptable and morally justifiable”.
And councillor Tony Markley (Solway Coast, Conservative) said that farms were small businesses and the only way to make it viable was to pass the farms through their family lines.
Councillor Gareth Ellis (Wetheral, Conservative) observed that the first budget from the new Labour Government had turned out to be a “calamity”.
The motion was voted down
When the motion was put to the vote there were more councillors against the proposal and it fell.
After a press release by Ian Duncan
