Political opinion: Tom Gordon MP: We must support our small and family businesses – not penalise them

The changes announced in last year’s budget – quite rightly dubbed the “family farm tax” – were a terrible blow for farmers. Agriculture is an industry traditionally passed down generations. Now their children and grandchildren could be forced to sell up.

Snuck in alongside this change was a similar change to Business Property Relief, which is the equivalent for family-owned businesses – limiting the amount of inheritance tax paid when parents passed their businesses or shares in smaller companies on to children and grandchildren. This change will affect many of our most treasured family-owned businesses, potentially forcing them to sell up.

The evidence from the Office of Budget Responsibility’s assessment in January is that the changes will raise little money, and primarily hurt our small and medium size businesses – that account for much of our economy and are the lifeblood and bedrock of it. I don’t think Labour understand just how damaging this policy will be to small businesses, not least farmers. The serious danger is that more small businesses and farms will be snapped up by much larger businesses, likely based overseas, taking locally made profits out of our towns and communities.

The potential impact on farms is particularly concerning. Small farming families aren’t wealthy, regardless of how much their land might be worth, driven up by the need for housing and wealthy individuals buying up land to avoid inheritance tax. Of course, it is important that we close loopholes allowing wealthy people with no intention or interest in farming from simply buying up land to avoid tax, but to punish true farmers – often the lifeblood of rural communities and vital in ensuring food security – for this is both absurd and stupid. Many farmers already face challenges with young people increasingly less interested in farming, and this policy will only push more away.

I’m very concerned about the potential losses in Harrogate and Knaresborough, in both the towns and the countryside. To see family businesses wiped out is an awful thought, and I will continue to oppose this terrible policy. In the towns there is another layer of concern. Many of our wonderful businesses are owned by families of individuals, and they are at serious risk. Our towns both have large and vibrant tourism industries, and the potential to see them hollowed out is extremely alarming.

Both inside and outside Parliament, I will continue to raise this issue, writing to Ministers and working with businesses and families to put pressure on the Government to reverse course and support, not penalise, businesses. I know that they should be treated as partners, not subordinates to the Government. That’s how we achieve economic growth, and ensure that businesses can survive through future generations. I will continue the fight for exactly that.