Issue - meetings

Farming Motion Working Group Update

Purpose

To report back from the Task & Finish Group the evidence they received from stakeholders during their inquiry into the proposed changes to Inheritance Tax (IHT) for farmers and that the messages they recommend are included in the Council’s representations to Government.

Additional documents:

Minutes:

In discussing the report, Members made the following points:

The government’s proposed changes were well-intentioned and aimed to address inheritance tax avoidance.
The main concern highlighted was farmers' difficulty in paying potentially large inheritance tax bills.
Broader potential impacts, included: Food security issues, changes to land values and possible disruption to farming practices.
It was emphasised that this process was not driven by any political group nor prejudged before it began.
Various reports were received and investigated by task and finish group members: Treasury and Lords briefings, additional reports from DEFRA.
Five proposed key messages to the government with six alternative policy approaches and seven alternative options included in the report.
Succession planning must be carefully developed over time, with agreement from all involved.
Farmers earned their income through active farming, whereas wealthy landowners may use farmland primarily as a means to avoid tax. A 20% tax rate did not effectively deter this kind of tax avoidance whereas a 40% Inheritance Tax (IHT) would serve as a stronger deterrent.
A review was being requested to consider implementing a system of rollover reliefs.

Clarification was sought whether the Task and Finish Group would be proposing a formal recommendation (a specific form of words) or simply presenting the findings for the Council to note.

The actions agreed involved putting forward a form of words which was up to the full Council to review, accept or change. The first stages would be to agree the wording of the letter to the Chancellor of the Exchequer with the Leader of the Council.

The Committee agreed that an updated version of the report would be included in the full Council agenda, allowing councillors to see the outcome of the Task and Finish Group’s work. If the Council agreed that the Leader should write a letter, it could then be drafted based on the contents of that report.

Councillor Cunningham proposed accepting the Farming Motion Update and Councillor Harris seconded the proposal.

RESOLVED: to RECOMMEND to Council to request that the Leader writes to the Chancellor of the Exchequer expressing concerns that the proposed

changes to Inheritance Tax rules as they relate to farms will have

unintended consequences that could have far reaching implications

for the viability of the farming sector of the Cotswolds.

Issue - meetings

Farming Motion Working Group Update

Meeting: 07/07/2025 - Overview and Scrutiny Committee (Item 202)

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