West Devon Borough Council calls on Government to rethink proposed Agricultural Property Tax

West Devon Borough Council is urging the government to reconsider its controversial proposal to introduce a 20% Agricultural Property Tax on farm inheritance, a policy announced in the recent Budget. The Council fears the tax could have devastating consequences for family farms, rural communities, and food security.

At a Full Council meeting on Tuesday, December 10th, members unanimously agreed to:

1. Write to the Chancellor and Secretary of State for Environment, Food and Rural Affairs, calling for the reconsideration and significant modification of the proposed Agricultural Property Tax.

2. Advocate for meaningful engagement between Westminster, farming organisations, and rural councils to develop policies that support the farming sector rather than penalise it.

Councillor Holly Greenberry-Pullen, who proposed the motion, said that the tax would disproportionately impact small, family-run farms that form the backbone of West Devon’s rural economy. She stated: "This change will affect West Devon due to the number of small working family farms that are often passed down through generations. The value of their land and assets may not equate to their financial ability to pay this exorbitant rate of inheritance tax they will be liable for."

She added: “Many farmers already rely on second jobs to support their income. The loss of family farms wouldn’t just affect farmers; it would devastate rural communities, associated industries, and businesses. Large hedge fund companies could take over, resulting in negative impacts on rural and ecological stewardship that comes from generations of farming expertise.”

Councillor Mandy Ewings, Leader of the Council, commended the unity among councillors on this pressing issue, saying: "I’m really pleased that all our Councillors united to support a common cause. Farmers are the backbone of our communities in West Devon and custodians of the environment. It is only right that we demonstrate that we stand with them and recognise the part they play in supporting our food security, the local economy, and protecting biodiversity."

She pledged to advocate for the region’s farmers, stating: “I will now do all I can to get our voice heard in Westminster.”

The 20% Agricultural Property Tax on farm inheritance, as outlined in the Budget, has been widely criticised by farming organisations and rural councils. Opponents argue the policy could threaten the viability of small, family-run farms, lead to the consolidation of farmland under corporate entities, reducing local oversight of ecological and land management as well as undermining food security and the resilience of the UK’s agricultural sector.

Farmers across the country are already facing pressures from rising costs, workforce shortages, and climate challenges. The added financial burden of inheritance tax on agricultural property could accelerate the decline of traditional farming practices, leading to long-term economic and environmental consequences.

West Devon Borough Council is advocating for constructive dialogue between the government, farming organisations, and rural councils to craft policies that bolster the farming sector. The Council said that sustainable solutions should prioritise rural resilience, food security, and environmental stewardship.