The chancellor appears to have a fight on her hands with Britain's family farmers. In her Budget, Rachel Reeves closed a loophole to stop rich people investing in land to reduce their inheritance tax bills, penalising them with a new million pound tax threshold. But farmers in Cirencester have labelled the move "demoralising" and the deputy president of NFU Cymru Abi Reader warns it will lead to "economic stagnation". Report by Brooksl. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn
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00:00Then we're at 130, get on to the end.
00:01Big, up 130.
00:02Up now to 223, 123, 4, 120 more.
00:05375, set it up.
00:063,500, bid.
00:07Up 100.
00:08Pound out, double up, 400.
00:09Bid.
00:13If it wants to be passed on after death,
00:15we're going to be hit with a £1.2 million tax bill.
00:19It's just demoralising.
00:21It's just another thing you've got to overcome.
00:24The threshold of a million pound, that is more of a shock.
00:27I thought perhaps if it could be, say, put up to £10 million,
00:30something like that, then it allows family farms
00:32to keep farming.
00:38On paper, yeah, it all looks great.
00:39What are you complaining about?
00:40But the reality is, you're sat on several million pounds
00:43worth of assets.
00:44In some months, a thousand pound bill is a struggle to pay.
00:47This is going to cause economic stagnation
00:49because farms are not going to be
00:51willing to invest in their farm to increase its value.
00:54Why would you put up a new cubicle
00:55shed or a milking parlour or a slurry store
00:58if you're going to increase the value of that farm?
00:59You're just going to create a bigger problem
01:01for your next of kin.