Urgent question on budget implications for farming communities

Shetland’s MP has led an urgent question in the House of Commons on the implication’s of last week’s budget on farming communities.

Alistair Carmichael has spoken after farmers voiced concerns over Labour’s first budget in 14 years.

Last week Chancellor Rachel Reeves announced that combined business and agricultural assets worth more than £1m would be taxed at 20 per cent from April 2026.

Previously, Agricultural Property Relief (APR) meant that farmland and associated buildings could be passed to future generations free of charge.

Now, Mr Carmichael has highlighted past undertakings by the Defra (Department for environment, food and rural affairs) secretary that he would not raise inheritance tax on farmers.

Mr Carmichael has also called for the government to publish data behind several claims made by ministers in support of the tax changes.

Mr Carmichael, who also chairs the Environment, Food and Rural Affairs Select Committee, noted concerns about the removal of the ring fence for devolved farm funding, and questioned the compatibility of the budget with the government’s stated aim of increasing food security.

“Building up strong and resilient farming communities should be a goal for anyone who cares about our environment, our food security and our economy,” said Mr Carmichael.”