Harriet Cross MP has underlined the need for Labour’s family farm tax to be scrapped amid fears the number of agricultural holdings across Scotland will continue to drop if the plans go ahead next year.
Figures from the Scottish Government show land, buildings and equipment for agricultural purposes has declined by as much as 14% in some parts of Scotland over the last two years.
Since 2022, agricultural holdings in the Highlands have reduced by 1,381 to 9,948, while in Aberdeenshire, the number has dropped by 435 to 6,505. In Moray there has been a 10% decrease and in Angus, there has been a 3% decline.
It comes as around 200,000 people have now signed a Conservative petition to “stop Labour’s family farm tax”.
Under Labour’s plans, from April 2026, inherited agricultural assets worth more than £1 million will be subject to a 20% inheritance tax rate.
Ms Cross, the Scottish Conservative MP for Gordon and Buchan, gave a speech at the North East Scotland Tractor Rally at Thainstone Agricultural Centre near Inverurie last month where more than 200 farmers attended to voice their anger at the scheme.
All four UK farming unions – NFU Scotland, NFU, NFU Cymru and Ulster Farmers’ Union – will participate in a nationwide day of action on Saturday, January 25, to highlight the damage that the Labour government’s proposed changes to inheritance tax will do to farms.
Scottish Conservative MP for Gordon and Buchan, Harriet Cross, said: “These figures are an illustration of the precarious situation farms already find themselves in before Labour implements their cruel and unjustified family farm tax next year, if their plans go ahead.
“For many, passing on the family farm is not merely a matter of inheritance but ensures food security, local employment and a way of life that has shaped our rural communities and economies across Scotland for generations.
“But in the North and North East of Scotland, we are seeing a decline in the number of farms and this tax is another barrier to an industry which is already facing huge challenges.
“Farms do not have liquid wealth; farmers rely on land as their primary business asset to produce food and only turn a small, often miniscule, profit with a very constrained cash flow.
“Keir Starmer must stop this attack on farmers and act in the best interests of our nation to protect the future of the industry.”
