Proposals to curb inheritance tax relief for farmers could affect around 250 York farms along with city-based shops and businesses who depend on their produce, local Conservative councillors have claimed.
Coun Chris Steward, leader of the Conservative group on York Council, said proposed reforms to Agricultural Property Relief (APR)threatened to break up farms which are already struggling with rising costs.
The group is set call on councillors to oppose the changes, which were unveiled by Chancellor Rachel Reeves in her October Budget, at the full council meeting on Thursday 21 November.
Ms Reeves and Environment Secretary Steve Reed said the reforms would ensure wealthier farms pay their fair share and difficult decisions had to be taken to fund crumbling public services.
It comes as thousands of farmers protested in London on Tuesday 19 November against the reforms which the National Farmers’ Union (NFU) claimed would put family farms at risk.
Government proposals would see 100 per cent relief on inheritance tax restricted to the first £1m of combined agricultural and business property from April 2026.
Landowners would pay inheritance tax at a rate of 20 per cent on property above that, rather than the standard 40 per cent.
Farmers would also be able to pay the tax in interest-free instalments over 10 years.
The Government has stated the reforms would mean £3m worth of property and land on a farm owned by two people could be passed on tax free.
It added the current system meant the 117 largest APR claimants, 7 per cent of the total, accounted for two fifths of all tax relief costing the Treasury £219m-a-year.
But the Conservative motion set to be tabled on Thursday stated that while farming assets appeared financially valuable on paper, their owners and the industry were struggling.
The group added the impact on almost 250 York farms covering around 18,000ha, according to estimates based on Government figures, could affect hundreds of agricultural jobs.
The motion also stated the changes would affect butchers and other businesses and they could ultimately lead to the break up of farms which have been in families for generations.
The motion calls on the council to lobby MPs to oppose the changes and to offer help and support to affected local farmers.
Conservative group leader Coun Steward said the Labour Government’s claims that the changes would only affect rich farmers did not reflect reality.
The Conservative said: “There is significant hardship in many rural communities and people working hard to feed us deserve more support.
“Bringing in inheritance tax on farms will threaten the countryside and food security, as families that have been custodians of our farms for generations will struggle to continue and will be replaced by large companies and the overseas wealthy.
“We already import around 40 per cent of the food we eat in the UK, and this tax is only going to make things even worse.”
The Chancellor and Environment Secretary said they recognised the strength of feeling expressed over the proposals, adding they were committed to the faming industry and food security.
They added £5bn pledged for sustainable food production, rural economic growth and nature recovery over the next two years amount to the most Government funding ever for the industry.
The cabinet ministers said: “Farmers are the backbone of Britain, we are steadfast in our commitment to Britain’s farming industry.
“But with public services crumbling and a £22bn fiscal hole that this Government inherited, we have taken difficult decisions.
“These reforms ensure that wealthier estates and the most valuable farms pay their fair share to invest in our schools and health services that farmers and families in rural communities rely on.”