Oxfordshire farmer claims budget is 'kick in the teeth' for 'industry already on its knees'

  • ITV Meridian reporter Ciaran Fitzpatrick looks into how inheritance tax changes may have an impact on small farms

An Oxfordshire farmer has described the Autumn Budget as a 'kick in the teeth' to all farmers, after the Chancellor, Rachel Reeves, announced an inheritance tax of 20% for farming estates worth more than £1 million.

James Florey, a fourth-generation farmer from Northmoor, near Oxford, took on his dad's farm and hopes to pass it on to his daughters, if they would like to continue the family trade.

Churchills Farm, in the West Oxfordshire countryside, has been in the Florey family for for more than 100 years.

The cattle and sheep rearer says they are already in a 'volatile industry' and the tax will have a massive impact.

"In an industry that is effectively already on it’s knees - we are losing subsidies and it is a really really volatile industry because weather conditions are all over the place," James Florey said.

  • James Florey told ITV Meridian: "This is just another kick in the teeth."

In the Rachel Reeves' Autumn Budget, announced yesterday, farmers will need to pay a 20% inheritance tax on assets over £1m, if they chose to give their land to somebody else when they pass away.

However, Foley isn't happy as he believes that the new tax means he would potentially have to sell land to pay a tax bill which could mean the end of his family's business.

"There is no way in the world that we will have capital to afford to pay that type of bill.

"If were to do that [sell], I would be forced to pay off essentially 20% of the land to pay the tax bill which just breaks up the family farm."

James Foley, the fourth generation, with his two daughters, the potential fifth generation.

In a public appearance, Reeves said that this will not affect most small farmers.

She said: "73% of farms will not be affected at all by the changes that we made yesterday to agricultural property relief.

  • The Chancellor, Rachel Reeves, has defended her decision saying "small farmers will see no change"

James said he wants his children to have the option to own the farm in the future and continue the legacy, but only if they want to do it.

However he now thinks this may not be possible.

Mr Florey said, "They have essentially gone back on his word and doesn't support farming on that respect, and that is a real concern, not only from the food security impact but the emotional impact.

"We have a prime minister that came out at the NFU conference (February 2023) and recognised that the farm business is different to other businesses.

"If a family farm goes then there is no food production and it is lost forever."

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