MP expresses concern at budget implications

Carla Lockhart MP • October 23, 2024

With the Labour Government’s Budget just days away, Upper Bann MP Carla Lockhart has expressed her concerns about the possible implications for farmers and agri-food businesses in Northern Ireland.

“The facts remain unknown, but there is strong speculation in Westminster that the 2024 Budget will focus on significant tax hikes and spending cuts. Chancellor Rachel Reeves will unveil full details on Wednesday, 30th October.

 

“Prime Minister, Sir Keir Starmer has already hinted that the UK is set for a tax heist, but hasn’t specified exactly what this will entail. The Labour Government’s election manifesto pledged to help ‘working people’ by leaving income tax, VAT and National Insurance unaltered, but it didn’t declare the ‘true’ extent of its plans for raising revenue for the Treasury.”

 

Ms Lockhart, the DUP’s Agriculture, Environment and Rural Affairs spokesperson is worried that the upcoming Budget will have ‘far-reaching’ consequences for farmers, land owners and rural businesses.

 

“There is mounting speculation that inheritance tax relief will be targeted. There are many opinions circulating and the revised possibilities could include adjusting thresholds, imposing upper limits on the benefit, or abolishing it completely. Whatever the end result, it will undoubtedly, have serious consequences for family farms and rural communities.”

 

Farmland currently benefits from Agricultural Property Relief (APR), which allows farms and farm businesses to be passed from one generation to the next. “Working farms are exempt from inheritance tax, and any changes to the current regime could have a detrimental impact on the longevity of family farms.

 

“Farming is a generational occupation and Agricultural Property Relief and Business Property Relief is a crucial factor in succession planning. Without inheritance tax relief, the value of an individual’s land and farm business assets would be hit with a 40% tax bill on death.

 

“Introducing such a penalty would discourage the younger generation to continue farming. Agriculture is the largest industry in Northern Ireland and it is already facing financial challenges on a daily basis. Agricultural Property Relief is not just a tax relief, it is the cornerstone for an existing farm business to remain profitable and sustainable for the next generation.”

 

The DUP remains defiant of any changes to the inheritance tax regime in Northern Ireland. The Deputy First Minister, Emma Little-Pengelly MLA, raised the party’s concerns with the Prime Minister recently at the Council of Nations and Regions meeting in Edinburgh.

 

Carla Lockhart MP added: ”Farmers are the backbone of the agri-food sector and they play an essential role, providing employment and making a significant contribution of the economy.

 

“I urge the Government to be cautious over any planned Budget inheritance tax changes. The UK needs farmers! They are custodians of the land, vital for a thriving rural community and essential to sustain food and environmental security.

 

“The Government should be encouraging farmers by increasing financial support in line with inflation, not driving them out of business.

 

Industry leaders and accountants are also speculating that the Chancellor may increase Capital Gains tax and reduce the rate of tax relief on private pension contributions.

 

“Many farmers buy machinery, or boost their private pension funds annually, to avail of tax relief. Farmers are already pre-empting the tax-related small print of the Budget, and topping up their pension pots as this option may not be as beneficial after next Wednesday.”

 

Earlier this week Carla Lockhart MP and her party colleagues, Gavin Robinson MP, Jim Shannon MP, Sammy Wilson MP and Gregory Campbell MP, delivered a letter to the Chancellor highlighting some key priorities for Northern Ireland.

 

Ms Lockhart added:” We make no apology for speaking up and fighting for a budget that benefits constituents in Northern Ireland. Among our asks were a funding formula that addresses the real needs of health, education and policy.

 

“The DUP wants to see support for low income workers, especially increased tax thresholds to reduce the burden on low-wage earners, which will make work more rewarding. Additional tax relief is also necessary for struggling industries such as hospitality, and rethink on VAT for independent school fees is essential to avoid penalising working families.

 

“We also want the Government to address the ongoing issue of pension inequality for women born in the 1950’s. Finally, the Government must deliver on its promises for

Horizon scandal victims, the Windrush generation and others affected by state failures.

Share

By Carla Lockhart MP July 2, 2025
The Labour government is in crisis and facing mounting pressure to climbdown on its proposed changes to Agricultural Property Relief (APR) and Business Property Relief (BPR).
By Carla Lockhart MP July 2, 2025
Upper Bann MP Carla Lockhart has called on the UK Government to ensure that parents of premature babies are properly supported through parental leave entitlements and has urged Northern Ireland to follow suit with legislative progress that reflects the unique challenges these families face.
By Carla Lockhart MP July 2, 2025
Upper Bann MP, Carla Lockhart has today issued a scathing criticism of the Secretary of State for Northern Ireland following his dismissive response to serious concerns raised in Parliament about the impact of the Windsor Framework on local businesses.
By Carla Lockhart MP July 2, 2025
Upper Bann MP, Carla Lockhart, has praised the organisers, volunteers, and local community following a highly successful Northern Ireland Kidney Research Fund Vintage Cavalcade held in Waringstown.
By Carla Lockhart MP July 2, 2025
Upper Bann MP, Carla Lockhart, has strongly criticised the Infrastructure Minister following the latest announcement of part-time 20mph speed limits outside schools with not a single school in Upper Bann included in the new tranche.
By Carla Lockhart MP July 2, 2025
Upper Bann MP, Carla Lockhart, has paid tribute to the warmth and generosity of the Waringstown community following her visit to a special coffee morning hosted by Evelyn Hall in memory of her late husband, Mervyn, on what would have been his birthday.
By Carla Lockhart MP July 2, 2025
Upper Bann MP, Carla Lockhart, has strongly criticised the Infrastructure Minister following the latest announcement of part-time 20mph speed limits outside schools with not a single school in Upper Bann included in the new tranche.
By Carla Lockhart MP July 1, 2025
Upper Bann MP, Carla Lockhart, has strongly condemned the Government’s handling of today’s welfare reform debate, describing the scenes in the House of Commons as “pantomime politics at its best.” The debate on the Personal Independence Payment (PIP) and Universal Credit Bill was marked by confusion, with significant policy changes announced live from the despatch box, leaving MPs reacting to legislation that was changing before their eyes.
By Carla Lockhart MP July 1, 2025
Upper Bann MP Carla Lockhart is appealing to livestock farmers in Northern Ireland to remain vigilant as the threat from Bluetongue disease increases.
By Carla Lockhart MP June 26, 2025
Upper Bann MP and DUP Westminster Agriculture Spokesperson Carla Lockhart has tabled an Early Day Motion in the House of Commons opposing the enforcement of burdensome EU regulations on the movement of used agricultural and forestry machinery from Great Britain to Northern Ireland.
More Posts