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Agenda item

Report Back from British Farming Motion Task and Finish Group

Purpose

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

 

Recommendation(s)

That Council resolves 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.

Minutes:

To receive a report from the British Farming Motion Task and Finish Group on the evidence gathered from stakeholders during its inquiry into the proposed changes to Inheritance Tax (IHT) for farmers, and to consider the recommended messaging for inclusion in the Council’s representations to Government.

 

Councillor David Cunningham introduced the report, explaining it followed a motion raised by Councillor Julia Judd concerning local farming community concerns over proposed changes to Inheritance Tax (IHT). A second motion had referred the matter to the Overview and Scrutiny Committee to consider the local impacts and inform a fuller Council response, including a letter to the Chancellor of the Exchequer.

 

A cross-party task and finish group, chaired by Councillors David Cunningham and Angus Jenkinson, met several times, consulting local farmers, the NFU, landowners, rural organisations, and tax experts. The group acknowledged that while the government sought to close misuse of Agricultural Property Relief (APR), the proposed reforms lacked distinction between genuine farmers and speculative investors and risked unintended negative consequences.

 

The report highlighted four key risks:

1.    Failure to address tax loopholes enabling non-farmers to use land for tax avoidance;

2.    Undermining of environmental progress by penalising farms engaged in land-use transition aligned with national and international climate goals;

3.    Disruption to family farming, especially around succession planning;

4.    Lack of reinvestment, with no strategy to direct revenue into sustainable agriculture or food security.

 

The group recommended the letter to the Chancellor request:

·         Clear distinction between active farmers and investors;

·         Protection for farms contributing to environmental goals;

·         Adequate lead-in time for any changes;

·        Integration with broader rural policy and reinvestment into sustainable farming.

 

Councillor Angus Jenkinson seconded the proposal, noting farming’s central role in the Cotswolds’ economy and landscape. He supported the group’s balanced approach and emphasised the risks to working farmers and the environment.

 

Councillors widely supported the report, praising the cross-party work and thorough stakeholder engagement. In their supporting speeches they highlighted the vulnerability of asset-rich, cash-poor family farms and the importance of national food security. Members also agreed that the delay in sending the letter had allowed a stronger, evidence-based submission.

 

One member opposed the letter, supporting the principle of aligning APR with relief for other small businesses. They questioned whether it was appropriate for a district council to intervene on national tax policy and suggested that broader systemic reforms were needed to address the tax burden on small businesses, which are often disadvantaged compared to large corporations.

 

The Chair then moved to the vote on the recommendation of the Task and Finish group,  proposed by Councillor David Cunningham and seconded by Councillor Angus Jenkinson.

 

Action: Councillor Mike Evemy, Leader of the Council, to write to the Chancellor of the Exchequer and the Secretary of State for Environment, Food and Rural Affairs, incorporating the group’s findings. The Leader also agreed to share the draft with the task group leads and to copy in local MPs and relevant partners, including the Cotswolds National Landscape organisation.

 

Voting Record:

26 For, 1 Against, 0 Abstentions.

Did not vote: Councillor David Fowles.

Supporting documents:

 

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