Dear Chancellor,
I am writing on behalf of the Ulster Farmers’ Union (UFU), representing almost 12,000 farm families across Northern Ireland, to reiterate our deep concern about the proposed changes to Agricultural Property Relief (APR) under Inheritance Tax, and to resubmit our request to meet with you urgently to discuss the unique and serious implications for our sector.
The impact of these proposals in Northern Ireland would be uniquely severe. Northern Ireland has some of the highest agricultural land values in the UK and a pattern of predominantly family-owned farms. Further, land availability is scarce, meaning there is no realistic prospect of replacing it if sold. For smaller farms in particular, the sale of a parcel of land to pay tax liabilities can undermine the viability of the entire enterprise. Farm incomes are lower than anywhere else in the UK, which leaves family farms little financial headroom to absorb changing tax demands. Our industry’s reliance on smooth intergenerational transfer is great, and the loss of continuity would threaten individual farm businesses and the wider agri-food sector as a whole, which accounts for almost a third of Northern Ireland’s manufacturing output, and approximately 15% of the UK’s food manufacturing output. The damage would be felt far beyond the farm gate – but through rural communities and weakening food security.
Agriculture here is the backbone of rural life, community stability, and our agri-food economy. Farms are overwhelmingly family-owned and family-run, often passed down through generations on relatively small holdings. The land is a business asset and a heritage, and succession is central to the survival of our sector. The proposed restrictions on APR would make succession financially impossible for many. The result would be forced sales, the splitting of farms, and the loss of viable businesses that have taken generations to build.
We understand that during your recent visit to Belfast, both Deputy First Minister Emma Little-Pengelly and Finance Minister John O’Dowd raised this matter directly with you following a correspondence submitted to the Secretary of State for Environment, Food and Rural Affairs by the Agriculture, Environment and Rural Affairs Minister in Northern Ireland. Whilst I am encouraged that our Executive Ministers have voiced these concerns at the highest level, I believe it is critical that the farming community itself is afforded the opportunity to present the case and evidence for why these changes would be deeply damaging in Northern Ireland. The scale of the threat these changes pose to agriculture demands direct engagement with those whose livelihoods, heritage, and communities are at stake.
We urge the Treasury to pause and fully assess the consequences for Northern Ireland and the rest of the UK, and withdraw the damaging family farm tax. To proceed with these changes without a full impact assessment would be reckless.
I therefore again request that you meet with the UFU as a matter of urgency, so we can present the evidence directly, and ensure the unique circumstances of Northern Ireland agriculture are fully considered.
Yours sincerely,
William Irvine
Ulster Farmers’ Union
