MPs plead for change as 'toxic' government plans threaten Devon farms

'Their figures are wrong and they should change the policy'

Devon MPs have pleaded with the government to change course on what they claim are ‘toxic’ forthcoming inheritance tax rules that will destroy many of the county’s family farms.

Under government plans announced in last October's budget, inheritance tax on agricultural assets worth more than £1 million will be introduced, although farming couples will be able to pass on £3 million to direct descendents before  the tax is levied. 

The changes will come in from April 2026, at a rate of 20 per cent. The rate for non-farming assets is 40 per cent.

During a debate in parliament, Sir Geoffrey Cox, Conservative MP for Torridge and Tavistock, accused the prime minister of shedding "crocodile tears" when he spoke to farmers.

He went on: “His voice trembled as he conveyed to those people in my constituency, across England and in all the regions of this great country that he would never impose upon them the tax that he has imposed upon them.

“It is a cynical breach of a promise. The time has come for the ministry and the ministers to accept that they are wrong. Their figures are wrong. They should change the policy.”

South Devon Liberal Democrat MP Caroline Voaden said that while the government claimed that 73 per cent of family farms would be unaffected by the changes, 85 per cent of farmers who responded to a Lib Dem survey believed they would.

And the ‘extortionate’ cost of land in South Devon, which has nearly 500 farms, meant the average inheritance tax bill would be £637,000.

“This is unworkable, and will see the decimation of our family farms,” she said. “The rural economy is heavily dependent on farmers but goes much wider than just the farmers themselves. The impact of the change will be enormous in rural communities like mine.”

She said farmers are key to tackling climate change and crucial to food security.

“Why place them under yet more pressure after all the challenges they have already faced in the last decade?” she wondered.

“This includes damaging trade deals, the poorly managed transition to environmental land management schemes, a botched deal with the EU that has limited their ability to export, higher input and energy prices, and of course floods?

“This is a toxic mess for farmers.”