Northumberland MP David Smith has recently faced criticism from Conservative councillors following his call for amendments to the Government’s contentious inheritance tax policy that affects farmers. This development emerged from a parliamentary speech made by Mr Smith in the previous week, wherein he urged the Government to reassess its stance on the tax reform, expressing concerns that the policy could negatively impact family farms.

The contentious tax reform was introduced earlier this year and aims to charge a 20% inheritance tax on agricultural assets worth more than £1 million, a significant shift from the previous exemption on such assets. The Government maintains that the new policy will not affect the majority of estates and is tailored to curb tax avoidance by wealthy individuals acquiring agricultural land for speculative purposes.

Conservative councillor Mark Mather, who represents the Wooler ward within Mr Smith’s constituency on Northumberland County Council and is a tenant farmer himself, has openly expressed his frustration with the MP’s stance. Coun Mather remarked, “I don’t know what he’s playing at. Why come out now? How can we trust him? This has put people through months of sheer hell.” He further articulated that Mr Smith should have been more attentive to the concerns of local residents when the policy was first proposed.

Mather emphasised the importance of the MP’s role in representing the interests of his constituents, saying, “At the end of the day, the MP is elected by the people of the constituency to represent them, he’s not employed by the Government.” He characterised the issue as one of principle, asserting that Mr Smith has failed to align with the needs of his constituents.

During his speech in Parliament, Mr Smith proposed that the inheritance tax policy be “recalibrated” to align better with the Government’s objectives, which include ensuring that tax relief is fairly distributed and preventing the ultra-wealthy from evading tax liabilities through strategies like land banking.

The Government’s perspective on the policy is that it will provide a more equitable distribution of tax relief, highlighting that a minute number of claimants have historically accounted for a significant proportion of relief costs. A spokesperson for the Government stated, “It is not fair for a very small number of claimants each year to claim such a significant amount of relief when this money could better be used to fund our public services.” Data reveals that the largest 117 claims represented 40% of the total value of agricultural property relief, with taxpayers footing a bill of approximately £219 million.

Despite attempts to reach Mr Smith for further commentary on the situation, he has not provided any response. The debate surrounding the inheritance tax policy and its implications for family farms continues to develop, with strong opinions from both sides adding to the complexity of the issue.

Source: Noah Wire Services