Family farm tax

British farmers are the foundation of rural communities the length and breadth of the country, they feed the nation while restoring nature and protecting our countryside. The Chichester constituency has some of the highest grading of agricultural land in the country and is home to 178 farms. Farms who are already facing real worries about their ability to continue, such as the impact of the expected substantial increase in fertilizer costs. 
 
I have been contacted by many small farmers across the Chichester constituency, who are deeply concerned about the impact of the Labour governments decisions in the Budget. 
 
In the last Autumn Budget, the Chancellor decided to cut Agricultural Property Relief (APR) to an effective tax rate of 20% on all agricultural assets which are valued at over £1 million. This would impact 50 of the farms in Chichester. 
 
My colleagues and I in the Liberal Democrats are deeply concerned about the impact this tax will have on the farming community which has suffered one shock after another - from the impact of Russia’s invasion on energy and feed prices, to the Conservatives’ botched trade deals. 
 
The Labour government risks making the same mistakes as the Conservatives who neglected British farmers. We cannot lose sight of what is at stake; our food security, our natural environment, the rural economy and the heritage of agricultural communities. 
 
The government's decision will impact tenant farmers on larger properties and other rural businesses which rely on the farming economy such as vets and agricultural merchants. 
 
This tax is especially concerning, given the Chancellor’s Budget also revealed that DEFRA’s day-to-day spending is set to drop by 1.9% over the next two years. 
 
Liberal Democrats have called for this cut to APR to be reversed and for the farming budget to be increased by £1 billion a year. This £1 billion would be used for long term investment in sustainable food production resilience to protect us domestically against future shocks. 
 
Farmers are key allies in tackling climate change and restoring the countryside to good health, while producing high quality food for our tables. We must ensure farmers can produce food sustainably and profitably.