Muir calls for tax relief to protect Northern Ireland’s farming future

DAERA Minister Andrew Muir MLA has called on Defra Minister Steve Reed MP to ask the UK Treasury for a “mitigating measure that inheritance tax liability be deferred where agricultural land is inherited if it continues in agricultural use and not disposed of within a seven year period”.

In a letter presented to Mid and East Antrim Borough Council, at a meeting, in The Braid, Ballymena, last week, Mr Muir said he wrote to Defra Minister Steve Reed on February 11 and March 12 to “reiterate his concerns regarding the potential impact of the proposed policy change”.

The DAERA Minister was responding to correspondence from the borough council requesting that he works with the Northern Ireland Executive to “establish a ring-fenced agricultural budget” to secure the long-term future of farming in the province.

Mr Muir indicated the Executive has formally agreed to “treat the £329.4m Resource DEL (Departmental Expenditure Limit) for agriculture, agri environment and rural development that was base-lined in the NI block grant as Executive earmarked” for these purposes for 2025-26 and future years.

“This is a major win for the local farming community and underscores the critical importance of agriculture to Northern Ireland and while this does not take into account inflation, having a proposal accepted to earmark the agriculture support budget is a significant and positive step forward,” he said.

“I will continue to do all I can within my remit to support farming families in Northern Ireland on these issues.”

Mr Muir also stated he “completely agreed” with points made in the council’s letter regarding the “vital role of family farms in supporting rural jobs, safeguarding food security and promoting environmental stewardship” as well as their “integral contribution to the all-island economy”.

“I have been working tirelessly with sector stakeholders to highlight the significant impact the inheritance tax changes will have on local family farms and the repercussions of these changes and the threat they pose to the continuation of family farming, succession planning and the potential impacts for food security and prices.”

He went on to say he has met the NI Secretary of State Hilary Benn and the Defra Minister to express his concerns and a letter has been sent from  First Minister Michelle O’Neill, Deputy First Minister Emma Little-Pengelly, then Finance Minister Caoimhe Archibald and himself to Chancellor Rachel Reeves urging the UK Government to reconsider its approach and highlighting their support for farming families affected by the proposed policy change.

He reported that the response has been “very disappointing”.

Mr Muir added:

“I have outlined to the UK Government the significant impact the changes will have particularly here in Northern Ireland given the structure of our farming community and the high market value of the agricultural land.”

He pointed out DAERA has undertaken analysis of the “potential impact” which has been shared with them for consideration.