A Perth tractor rally opposing the UK Government’s proposed agricultural inheritance tax changes will take place in the city tomorrow (Saturday, January 25).
NFU Scotland East Central members will join other farmers in a nationwide day of action to highlight a measure they consider will damage the viability of family farms across the UK.
Following chancellor Rachel Reeves’ October budget, farmers are concerned that inherited agricultural assets worth more than £1million, which had previously been exempt, will now be taxed at 20 per cent.
Farmers point out that while they may be asset rich – with land and livestock – they are cash poor and the measure will force farming families to sell land to pay the tax bill.
The Prime Minister Sir Keir Starmer has insisted the “vast majority” of farmers would not be affected by the tax changes.
The Perth rally is set to assemble at two points – Huntingtower and Bridge of Earn – before converging in Perth.
Aberfeldy farmer and NFU Scotland president Martin Kennedy said: “We have been seriously worried about this since the budget announcement at the end of October because of the implications for family farm businesses.
“The Government haven’t got their sums right at all.
“This is about taxing an asset, the value of which isn’t realised until it is sold.
“Farmers are struggling to make a profit. There are not enough margins to meet that tax bill.
“It will really hit hard. There will be no option but to sell part of the farm. It’s really concerning.
“The Government could do things another way. If the farm is handed down to the next generation and they don’t want to continue farming it can be sold. There is the opportunity to tax it then.”
NFU Scotland is hoping that during the rally participants will have the opportunity to raise concerns about how changes to taxation will impact their businesses directly with their local MP and attending politicians.
The Perth rally will congregate around the outskirts of Perth before travelling towards Edinburgh Road. Those travelling from the North or West of Perth will gather at Huntingtower at 10am and those from the south at the same time at East Dron, Bridge of Earn.
The rally will then travel into Perth from 11.30am, before parking on Edinburgh Road at noon.