Agenda item

The following Motion on Notice was presented by Councillor Craig Warhurst at the meeting:

“Council notes that:

•       Redditch and its surrounding villages have a proud history of supporting farmers and a deep connection to the land they farm.

•       Inheritance Tax reliefs like Agricultural Property Relief (APR) and Business Property Relief (BPR) have been essential in helping farmers pass on their farms to the next generation after a death, allowing the farms to stay within the family, and preserving agricultural production and stewardship of the countryside.

•       The Labour Government’s recent 2024 Autumn Budget changes to Inheritance Tax relief will impose an effective 20% tax on agricultural assets valued over £1 million, introducing what has been termed the “Family Farm Tax.”

Council notes that the family farm taxes risk:

•       Reducing land availability for farming across the Borough and damaging the ability for farmers to pass their farms to their children;

•       Making food production at competitive prices more difficult for the Borough.

Council resolves:

•       That the Leader writes on behalf of the Council to the Secretary of State for Environment, Food and Rural Affairs and the 6 Worcestershire MPs, outlining the Council’s dismay at the decision to restrict APR and urging the Government to halt the Family Farm Tax.

•       To ask the Executive to consider engaging with local farmers and community representatives to assess how the Council can provide practical support during this challenging period.

•       To call for a detailed list of affected farms to better understand and address the impact of these changes.”

The Motion was proposed by Councillor Warhurst and seconded by Councillor Matthew Dormer.

In proposing the Motion, Councillor Warhurst commented that farmers had a proud history in the UK.  Tax relief had enabled farmers to pass down farms from generation to generation, thereby ensuring that farms remained sustainable businesses.  However, Councillor Warhurst expressed concerns that new national taxation rules relating to farmers would place family farms at risk, which would also place at risk the country’s food security.  Members were asked to note that the Motion called for the Leader to write to the Secretary of State for the Environment, Food and Rural Affairs as well as the six MPs in Worcestershire and Councillor Warhurst suggested that this was something that came within the remit of the Council.

In seconding the Motion, Councillor Dormer highlighted his concerns about the potential damage to farming that would arise from the changes to taxation for farms.  In particular, concerns were raised that many farming families would feel unable to afford to pass their farms on to their children and this would result in land being sold that might be purchased by developers.  As a consequence, there would be potentially more housing development on green belt land.

In responding to the Motion, the Leader highlighted his family’s history in the farming community.  Members were asked to note that there had been many changes at a national level over the years that had impacted on farming. It was suggested that the Executive Committee would be willing to engage with the farming community and to work to identify the number of local farms that might be impacted.  However, the taxation changes formed part of the country’s wider taxation policy and Members were asked to note that it would not be appropriate for the Council to lobby on behalf of just one part of the business sector.  For this reason, the Leader suggested that he could not support the proposal to write the letter as detailed in the Motion. 

Following the presentation of the Motion, Members discussed a number of points relating to the subject in detail:

·             The number of farms and farmers, both locally and nationally, that would be impacted by the taxation changes.

·             The financial costs arising from supermarket practices for the farming industry.

·             The rural parts of the Borough and the extent to which the proposed taxation changes would have an impact in these locations.

·             The potential for farmers to pass farms on to their children during their lifetimes.

·             The risk that farmers could sell land in the green belt to developers regardless of the changes in taxation.

During consideration of this item, Councillor Dormer requested a recorded name vote and names were recorded as follows:

Members Voting FOR the Motion:

Councillors Brandon Clayton, Matthew Dormer, Chris Holz, Gemma Monaco and Craig Warhurst (5).

Members voting AGAINST the Motion:

Councillors Joe Baker, Juliet Barker Smith, William Boyd, Bill Hartnett, James Fardoe, Andrew Fry, Sharon Harvey, Joanna Kane, Sid Khan, Wanda King, Alan Mason, Sachin Mathur, David Munro, Rita Rogers, Gary Slim, Jen Snape, Jane Spilsbury, Monica Stringfellow, Ian Woodall and Paul Wren (20).

Members voting to ABSTAIN on the Motion:

Councillor Claire Davies (1).

On being put to the vote the Motion was therefore defeated.