A FINANCIAL threat to farmers across the region is due to be discussed at this week’s full council meeting.
The UK Government’s planned changes to inheritance tax could see farmers and their families lose out financially to tax changes.
This is ringing alarm bells for Annandale South Councillor George Jamieson, who is calling for Dumfries and Galloway Council to lobby for a delay to any changes, and for the exploration of devolving land taxation to Scotland.
The Chancellor’s budget plans included limiting agricultural property relief (APR), which sparked widespread concern and criticism among farmers, who view these reforms as potentially devastating for an industry already facing economic challenges.
Councillor Jamieson will table a motion at Thursday council meeting, which reads: “Dumfries and Galloway Council agrees to lobby the UK Government directly, and through COSLA, to delay any changes to inheritance tax so that working commercial farmers, including owner occupiers and tenant farmers on long-term secure tenancies, as well as other rural stakeholders can be engaged with and consulted about the UK Budget’s effects on our local rural economy in Scotland.
“We are concerned about breaking the vital link between funding for Scotland’s farmers and our land mass, and changes to agricultural property relief that will affect succession planning in farms locally and throughout Scotland.
“Dumfries and Galloway Council seeks a tax system that supports, rather than hinders, orderly succession planning and the transfer of land to the next generation of custodians but recognises that our land tax system should be progressive by asking those with the greatest means to contribute more to our wellbeing economy, rather than smaller tenant farmers on larger estates.
“Dumfries and Galloway Council urges that UK Government takes forward ways to devolve land taxation to Scotland, and that the Scottish Government devolves to local authorities, or as close as possible to the communities where it is generated.”
The motion has been seconded by former council co-leader, Councillor Stephen Thompson.
MP Steve Reed, the Department for Environment Food and Rural Affairs (Defra) Secretary, insisted that 73 per cent of farmers will not be affected by the tax changes.
