Strawberry Fields and Tax Shields: Lib Dems Sound Alarm over Farming Inheritance Tax

During a visit to Somerset, Liberal Democrat leader Ed Davey and MP Tessa Munt showcased the county’s famous strawberries while voicing concerns over the UK government’s proposed changes to inheritance tax on farming assets. Under the new rules, agricultural assets valued over £1 million would be taxed at 20%—a rate deemed too low by critics when compared to standard tax rates. Davey passionately argued that the government’s approach could lead to many farmers being forced to sell their land, stressing the limited returns from capital investments in agriculture and expressing sadness at the prospect of farmers abandoning their businesses.

Both Davey and Munt stressed the significance of food production, especially in light of global challenges such as climate change, war, and water scarcity. Munt warned that the impact of these changes could be catastrophic for farmers, who are essential for the resilience of food systems. The pair rejected the government’s assertion that the reforms were fair, with the Treasury noting previously that around 75% of estates would not incur any inheritance taxes. The visit aimed to raise awareness of the potential dangers these tax reforms could impose on the farming community in an era of increasing environmental and economic pressures.