AN MP claimed the budget has thrown ‘Cumbria’s farmers to the wolves’.
The Chancellor of the Exchequer outlined how the Labour government will raise £40 billion in taxes, raise the minimum wage and increase the ‘day to day’ health budget by £22.6 billion during her autumn budget.
Rachel Reeves also announced reform to agricultural property relief with budget documents stating the 100 per cent rate of relief will continue for the first £1 million of combined agricultural and business assets.
The chancellor added from April 2026 inheritance tax will apply with the 50 per cent relief on assets over £1 million.
Ms Reeves said: “This will ensure we continue to protect small family farms, with three quarters of claims unaffected by these changes.”
However, MP for Westmorland and Lonsdale Tim Farron said: “The victims of the Chancellor’s Agricultural Property Relief changes will be hardworking tenant farmers here in Cumbria and across the country.
“She is incentivising large landowners to enact a new Lakeland clearances. Small family-owned farms will also be hit by this and will be forced to sell up, with young people robbed of their opportunity to farm.”
According to budget documents the government is facing ‘significant funding pressures’ on flood defences and farm schemes of almost £600 million in 2024/25 financial year.
“While the government is meeting those commitments this year, it is necessary to review these plans from 2025-26 to ensure they are affordable”, budget documents state.
Mr Farron added “Hidden deep in the Budget document is a strong hint that the Government may cut the farming budget.
“Tory failure and betrayal on agriculture has now been compounded by Labour who have thrown farmers and food production to the wolves.
“Liberal Democrats will fight this every step of the way.”
Mr Farron also said he is ‘deeply frustrated’ the government has decided to ‘kick the can down the road’ on decisions regarding the A66 upgrade and the construction of a new hospital in Lancaster.
Budget documents say road investment in the upcoming financial year will be funded through an interim roads settlement, and the third road investment strategy will be set out in the next phase of the spending review.
The government say they will continue delivery of the new hospital programme on a ‘more sustainable’ footing and will move swiftly to rebuilt hospitals with RAAC.
Documents add remaining schemes will be delivered through a rolling programme of major investment with further details to be set out in due course.
Mr Farron said: “I am deeply frustrated that the Government has decided to kick the can down the road on making decisions on vital projects to upgrade the A66 and to rebuild Royal Lancaster Infirmary.
“The dualling of the A66 is so important to reducing congesting, boosting our economy and saving lives.
“Meanwhile Royal Lancaster Infirmary is sadly no longer fit for purpose, and a new hospital at a more accessible site is desperately needed.
“Local people should not be forced to wait until next year to hear a decision on these important projects.”
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