A former National Farmers’ Union (NFU) chief who previously warned the so-called ‘tractor tax’ would “wipe out the family farm” has been hired by the government to lead a review into British farming.
As part of the government’s latest attempt to show they are listening to farmers and rebuild trust within the community, environment secretary Steve Reed has now hired Baroness Minette Batters, who has previously voiced opposition to the extension of inheritance tax to family farms, to lead a review of farm profitability.
The review, which will see the cross-bench peer provide recommendations to the department, is aimed at helping to ensure the farming sector is “more viable, self-sustaining and competitive in the long-term”.
It comes less than six months after the former NFU chief warned the so-called ‘tractor tax’ will “wipe out the family farm”, warning that the levy is “devoid of understanding of how the rural economy functions”.
Writing for Country Life magazine in December, Baroness Batters – who worked for the union for ten years – expressed “grave concerns about advice given by the Treasury to the government” and accused civil servants of having failed to engage with Defra when developing the plans.
“Farmers feel betrayed and trust must be rebuilt. There has been no coherent plan for five years now; no wonder farmer confidence is at an all-time low”, she warned.
Ms Batters added: “I don’t believe this government set out to wipe out the family farm as we know it. Yet it will be the consequence, unless a solution is found.”
In a statement announcing her appointment, Baroness Batters said she will “leave no stone unturned in trying to find solutions to boost farm profitability”, but warned: “We should be under no illusions how difficult this work will be”.
“There will not be one ‘silver bullet’ to fire but I’m hopeful this review can make a difference to a sector that produces the nation’s food, underpins the rural economy and delivers so much for the environment”, she said.
“I’m pleased to be appointed to lead this review and look forward to working with farmers and growers to provide recommendations to government, food retailers, processors and manufacturers.”
Environment secretary Steve Reed said he is “delighted to appoint Baroness Batters”, saying her “years of experience as a leader during a time of great change in British agriculture make her uniquely placed to provide recommendations on tackling the deep-rooted problems holding the sector back and support farmers’ long-term profits.”
“Backing British farmers is the backbone of all work to support rural economic growth and boost Britain’s food security”, he said.
“We have taken strong action to protect the future of the sector with the New Deal for Farmers. But we must go further and faster as part of our Plan for Change to put money into the pockets of farmers and drive growth.”
It comes after months of protests and discontent from rural communities over the extension of 20 per cent inheritance tax to farms valued at £1m or more, with a review last month warning that more than 200,000 jobs could be lost because of the tax.
The move would also cost the economy £14.9bn, according to a study by the independent consultancy CBI-Economics, which was commissioned by the group Family Business UK and looked at more than 4,000 businesses and farms across the country.
Nearly a quarter of family businesses – 23 per cent – and almost one in five family farms – 17 per cent – said they had cut jobs or halted recruitment since the planned tax was announced in the October budget.
Just under half of family farms – 49 per cent – said they have also paused or cancelled planned investments.
But ministers have defended the changes, saying that they had to take “difficult decisions” in the wake of what Labour says is a £22bn black hole in the public finances left by the last Tory government.
The Treasury says with tax allowances, in reality, only farms worth £3m would be affected – which is 28 per cent of family farms. But official Defra figures appear to suggest as many as 66 per cent could be hit.