MP expresses concern at budget implications for farmers and agri-food businesses in Northern Ireland

She said: “The facts remain unknown, but there is strong speculation in Westminster that the 2024 Budget will focus on significant tax hikes and spending cuts. Chancellor Rachel Reeves will unveil full details on Wednesday 30 October.

“Prime Minister, Sir Keir Starmer has already hinted that the UK is set for a tax heist, but hasn’t specified exactly what this will entail. The Labour Government’s election manifesto pledged to help ‘working people’ by leaving income tax, VAT and National Insurance unaltered, but it didn’t declare the ‘true’ extent of its plans for raising revenue for the Treasury.”

Ms Lockhart, the DUP’s Agriculture, Environment and Rural Affairs spokesperson is worried that the upcoming Budget will have ‘far-reaching’ consequences for farmers, land owners and rural businesses.

“There is mounting speculation that inheritance tax relief will be targeted,” she continued. “There are many opinions circulating and the revised possibilities could include adjusting thresholds, imposing upper limits on the benefit, or abolishing it completely. Whatever the end result, it will undoubtedly, have serious consequences for family farms and rural communities.”

Farmland currently benefits from Agricultural Property Relief (APR), which allows farms and farm businesses to be passed from one generation to the next.

Ms Lockhart continued: “Working farms are exempt from inheritance tax, and any changes to the current regime could have a detrimental impact on the longevity of family farms.

“Farming is a generational occupation and Agricultural Property Relief and Business Property Relief is a crucial factor in succession planning. Without inheritance tax relief, the value of an individual’s land and farm business assets would be hit with a 40% tax bill on death.

“Introducing such a penalty would discourage the younger generation to continue farming. Agriculture is the largest industry in Northern Ireland and it is already facing financial challenges on a daily basis. Agricultural Property Relief is not just a tax relief, it is the cornerstone for an existing farm business to remain profitable and sustainable for the next generation.”

The DUP remains defiant of any changes to the inheritance tax regime in Northern Ireland. The Deputy First Minister, Emma Little-Pengelly MLA, raised the party’s concerns with the Prime Minister recently at the Council of Nations and Regions meeting in Edinburgh.

Carla Lockhart MP added: ”Farmers are the backbone of the agri-food sector and they play an essential role, providing employment and making a significant contribution of the economy.

“I urge the Government to be cautious over any planned Budget inheritance tax changes. The UK needs farmers! They are custodians of the land, vital for a thriving rural community and essential to sustain food and environmental security.

“The Government should be encouraging farmers by increasing financial support in line with inflation, not driving them out of business.”

Industry leaders and accountants are also speculating that the Chancellor may increase Capital Gains tax and reduce the rate of tax relief on private pension contributions.

“Many farmers buy machinery, or boost their private pension funds annually, to avail of tax relief. Farmers are already pre-empting the tax-related small print of the Budget, and topping up their pension pots as this option may not be as beneficial after next Wednesday.”

Earlier this week Carla Lockhart MP and her party colleagues, Gavin Robinson MP, Jim Shannon MP, Sammy Wilson MP and Gregory Campbell MP, delivered a letter to the Chancellor highlighting some key priorities for Northern Ireland.

Ms Lockhart added: “We make no apology for speaking up and fighting for a budget that benefits constituents in Northern Ireland. Among our asks were a funding formula that addresses the real needs of health, education and policy.

“The DUP wants to see support for low income workers, especially increased tax thresholds to reduce the burden on low-wage earners, which will make work more rewarding. Additional tax relief is also necessary for struggling industries such as hospitality, and rethink on VAT for independent school fees is essential to avoid penalising working families.

“We also want the Government to address the ongoing issue of pension inequality for women born in the 1950s. Finally, the Government must deliver on its promises for Horizon scandal victims, the Windrush generation and others affected by state failures.”