It has been announced that the £1 million inheritance tax threshold in the UK will be transferable between spouses.
However, this decision has been deemed a ‘token gesture’ by Farmers for Action (FFA).
The organisation’s spokesperson, William Taylor, said: “It’s still nowhere good enough.
“Farm families in Northern Ireland will still be disproportionately impacted by these new tax measures.”
The inheritance tax changes were part of the package of UK Budget Day measures announced yesterday (November 26) by the Chancellor of the Exchequer, Rachel Reeves.
Farmer protest
Taylor told Agriland he took part in a farmer protest, held in London to coincide with the Chancellor’s Budget speech.
“Some 500 farmers took part in the demonstration, which was held at the entrance to Downing Street,” he said.
“Initially, it was hoped that a cavalcade of tractors and other farm machinery would be at the very heart of the protest.
“However, the police insisted that all of the vehicles brought to London for the day had to be parked up at Nelson’s Column.”
Looking ahead, the FFA representative believes the legalities surrounding the inheritance tax matter can be adjudicated upon by the European Commission in Brussels.
He explained: “This would entail taking the impact of the tax in Northern Ireland forward as a test case. And preparations to this end are now being made.”
FFA has received legal advice indicating the inheritance tax issue can be taken to Brussels as many EU regulations still impact directly on Northern Ireland.
Dairy finances
Meanwhile, FFA is deeply concerned about the worsening state of dairy farming finances.
“Milk producers in Scotland will receive 28p/L for November milk,” Taylor confirmed.
“This is a totally untenable situation.
“Meanwhile, the retail price of milk and dairy products remains unchanged.
“It’s a case of the retail multiples and the corporate processers maxing their profits while dairy farmers suffer.”
The FFA representative believes that steps to reduce milk output across Europe should be looked at as a way of boosting farm gate dairy prices.
This issue was highlighted at the recent general assembly of the European Milk Board (EMB).
Significant drops in producer prices are being reported in several European countries. This means that many farms are, once again, on the brink of going out of business.
In light of this development, EMB representatives have called for the immediate activation of voluntary production reductions at EU level.
This specific crisis instrument was created to take early action and rein in overproduction and price drops.
