There was heightened anger and emotion during a debate in which Cornwall Council overwhelmingly objected to the government’s ‘family farm tax’ this week.
During a meeting of the full council yesterday (Tuesday, November 26), councillors endorsed a motion brought by Liskeard Conservative councillor Nick Craker and seconded by Mevagissey and St Austell Bay Conservative councillor James Mustoe, which called upon the leader of the council Linda Taylor to write to the Secretary of State for Environment, Food and Rural Affairs urging the government to reconsider its decision and halt its controversial plans to impose inheritance tax on UK farms, dubbed the ‘family farm tax’.
An additional amendment, submitted by Penzance Independent councillor Tim Dwelly, was also supported, calling on the council to undertake an analysis of how many farms would actually be affected by the changes in national policy announced in the recent budget.
St Teath and Tintagel Liberal Democrat councillor Dominic Fairman owns a 200-acre farm on Bodmin Moor. He told the meeting: “I did pause for a moment before pledging my support for this motion, sensing that it might be seen as purely self-interest.
"However the provisions within the budget are sufficient that we probably could manage our affairs and hand our family farm down to the next generation without being forced to sell parts off.
“Where the measures will hit hardest, will be on those family farms who have had to expand over the years to maintain their incomes – often using extended family labour, which never appears on the balance sheet. These family units have paid – and continue to pay – dear for the land that they have bought to keep pace.”
He added: “Research shows that two thirds of farmland now is bought by life-style farmers or private investors such as Jeremy Clarkson, as land is seen as being a good hedge against inflation and of course – up to now – exempt from inheritance tax.
"This has been bad for farming, and one of the main reasons that so many farmers are struggling now. It has also been a complete barrier to new entrants with farms becoming unfinanceable as working units.”
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Cllr Fairman added: “The problem here – and the reason I am supporting the motion – is that by introducing this without considerable thought or extensive consultation, the government has simply set the bar too low. They are going to hit the typical 300-500-acre working family farm the hardest and impose on them heart-wrenching decisions over the land they work and love.”
Altarnun and Stoke Climsland councillor Adrian Parsons, another Lib Dem farmer, said: “Over the last 25 years we have seen a gradual erosion and steady decline in the family farm. Much to do with the rise of the supermarkets and corporate dominance, squeezing profitability, but I have no doubt politicians with a lack of understanding and disregard for the sector have played their part.
“Whether that be TB policy, BSE, ill-thought-out trade deals, overzealous regulations, bureaucracy and greening agendas that we all have to adhere to, it is now starting to feel like a class war and an attack on our way of life. What Labour has done with the introduction of these inheritance tax proposals for family farms isn’t so much giving us a kick when we’re down but more a stab in the back, as they have reneged on their pre-election promise not to do so.
“Add in the business property relief to the mix and you’ll be inevitably heading for a full rural economic slowdown as farmers won’t be looking to grow their business but instead looking to pay inheritance tax bills.”
A visibly emotional Alan Jewell, a fourth generation farmer and Conservative councillor in Falmouth, added: “I’ve never claimed a penny of benefits, I’ve paid my tax, I’m still paying off mortgages. My daughters will take on the farm that if we’re not careful we’ll pay an inheritance tax on. What is this all about? It’s about envy.
“We work hard, we’re still working hard. This is against the family farms – we need to go after the big investors who are buying land to avoid tax. I’m getting emotional because this is really tearing my heartstrings. The Labour government hasn’t got a clue how to run a business – nobody in the Cabinet has ever run a business. What is going on with this country? They haven’t got a clue.”
Along with other opposition members, Mebyon Kernow councillor for Callington Andrew Long pointed out what he said was political hypocrisy. “I will be supporting this in spite of some of the comments made today.
"The crisis affecting the farming in Cornwall and the UK is much older than July 4. It started decades ago – government after government have attacked farming in the UK.
"While some in this chamber are right to decry what the Labour government is doing, because it is wrong, it’s also wrong that for 14 years the previous regime together with some Liberal Democrats in the past have not done anything to support farming.”
Following an impassioned debate, a total of 55 votes were cast in favour of the motion, while three were against and three abstained. Proposer Cllr Craker said: “I particularly want to highlight the impact these changes may have on our young farmers and those considering careers as farmers or going to agricultural college. We need to make sure the sector has confidence and certainty to continue long into the future.”
The council’s Tory leader Linda Taylor added: “I hope that the government and our Labour Cornwall MPs, who have to date been silent on this, take note, and hope the Labour government will see sense and reverse their latest damaging policy.”
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