ABC councillors challenge inheritance tax changes which will affect 'vast majority of farming businesses'

In correspondence to ABC Borough Council, James Murray MP stated: “The reforms are expected to result in up to around 520 estates claiming agricultural property relief in 2026/27 paying more inheritance tax.

"This means almost three quarters of estates claiming agricultural property relief, including those that also claim for business property relief, would not pay any more tax as a result of the changes in 2026/27, based on the latest available data.”

Speaking at a recent council meeting, DUP Councillor Tim McClelland said: “I suppose at the outset I would declare an interest as the owner of an arable farm that potentially will be affected by inheritance tax.

"The UK Government still hold to the fact that only 500 farmers will be affected throughout the UK, yet official figures from the Office for Budget Responsibility – which is their own watchdog – say that those figures are highly uncertain, and indeed they rank them as amongst the most uncertain in the entire budget package.

"In Northern Ireland there’s been quite a bit of analysis done by DAERA, and that has shown that the vast majority of farming businesses will be affected by the inheritance tax changes.

"And it’s up on 45 per cent of cattle and sheep farmers; it’s a staggering 87 per cent of dairy farming businesses within Northern Ireland who have the potential to be caught within this tax.

"I think this reply from Minister Murray quite simply has to be challenged, and I’m open to suggestions in terms of how we challenge it.

"Given the importance of the agri-food sector sector within ABC Borough, given that we have the Food Heartland, given that we’re the first council in the United Kingdom that has the agri-strategy, I would propose that council write to Minister Murray and ask him for a meeting, at which we can at least put him right in terms of some of the nonsense in his reply.

"The Government talk about food security being a national priority, and yet they do the exact opposite with proposals like this. This simply has to be challenged.”

DUP Councillor Scott Armstrong also felt very strongly on the issue.

“I would like to second that proposal. I’m not a farmer, I don’t know the background, but what I did read here was nothing short of disgraceful from the Labour government.

"In the response it states that ‘the Government took a number of difficult but necessary decisions on tax, welfare, and spending to restore economic stability, fix the public finances, and support public services’.

"With inheritance tax, a rise in employer National Insurance contributions, and cutting off winter fuel payment, if we break this down it means tax the farmer, destroy the small business and freeze the pensioners.

"We need to remember why we’re here. We’re here for the people, and elected by the people, and any decision that we make in relation to public finances and taxation, we need to make for the betterment of the people that we represent.”