The Treasury has signalled there will be no U-turn over reforms to inheritance tax on agricultural land, Andrew Muir has said.
The Agriculture Minister told MLAs that if the changes go ahead there will have to be more focus on succession planning for farms in Northern Ireland.
During question time at the Assembly, the Minister said he recognised the Budget announcement had caused “real concern and anger” in the farming community.
From April 2026, previously exempt inherited agricultural assets worth more than £1 million will have to pay inheritance tax at 20%.
There have been different claims about how many farms will be affected.
But particular concerns have been raised about the potential impact in Northern Ireland due to the higher density of farms which remain in sole ownership or family ownership and the price of agricultural land in the region.
Thousands of farmers and supporters attended a meeting in Lisburn last week to protest against the decision announced in last month’s budget.
A number then travelled to Whitehall in London where they joined protesters from across the UK.
Thousands attend a protest meeting in Lisburn last week (Liam McBurney/PA)
Asked to give his assessment of the impact of changes announced in the Budget, Mr Muir said: “I recognise that the changes announced in the Budget regarding agricultural property relief and also business property relief in relation to inheritance tax have generated a real concern and anger within the local farming community and also further afield.
“I expressed these concerns when I met the Secretary of State (Hilary Benn) on 4th November and I urged him to reconsider these policies.
“I have also raised the issue with the Defra minister for state Daniel Zeichner and will continue to do so in meetings with other UK Government ministers.
“I have encouraged the UK Government to engage further with the farming community so that they have a better understanding of the concerns being raised and look again at this issue.”
Mr Muir said he would be meeting with the Ulster Farmers’ Union this week to consider the next steps.
He added: “Analysis carried out by my department shows that around one third of farms in Northern Ireland have a land value of more than £1 million.
“But these farms account for 60% of owned land and the majority of agricultural production.”
He said looking solely at the number of farms which might be affected does not measure the impact on the agriculture sector.
SDLP MLA Daniel McCrossan asked what steps the Minister would be taking to mitigate against the impact of the tax change on family farms.
Mr Muir said: “The issue in relation to inheritance tax is a reserved matter because it is taxation policy taken forward by the UK Government.
“What I am mindful of is that, if this tax change does proceed, and I have received a letter back from Treasury today very much clearly of the opinion that they are not for turning in regards to this, but I will continue to engage with them and urge them to rethink, is that we need to have a much bigger focus upon the issue of succession planning within farming in Northern Ireland.”
Mr Muir said another consequence of the Budget was changes to ring-fenced funding for agriculture.
He said: “Although existing funding for agriculture, agri-environment, fisheries and rural development continues to be earmarked by the Treasury until 31st March next year, it is important to provide certainty on this funding after that.
“While it is positive that funding levels have been maintained at £332.5 million, it is disappointing that it has not been increased in line with inflation.”
DUP MLA Jonathan Buckley accused the UK Government of a ‘tax raid on family farms’ (Liam McBurney/PA)
DUP MLA Jonathan Buckley accused the UK Government of a “tax raid on family farms”.
He then said the Government had committed £536 million to be spent overseas on programmes to promote low-carbon agricultural projects.
Mr Buckley said: “Can I ask the Minister, do you agree with this wasteful spend of public money?
“Do you believe the money should be spent on family farms in the UK to ensure they have a viable future?”
Mr Muir responded: “I am fighting the corner for agriculture in Northern Ireland in terms of the Budget.
“I think it is key we come together, both on the issue of inheritance tax but also in terms of funding for agriculture, agri-environment, fisheries and rural development.
“We need to be unified in terms of our approach to have these funds ring-fenced within Northern Ireland and also be clear in our message to the UK Government it should overturn the decision in terms of inheritance tax.”
He added: “When we were in the European Union, we had our funding as part of the Common Agricultural Policy and Common Fisheries Policy guaranteed to us in seven year tranches.
“Then we left the EU and that was earmarked until the end of March of next year.
“The uncertainty arising from the next financial year onwards is largely due, in terms of earmarked funding, to the departure from the European Union.
“People would do well to remember that.”