Leader of Lincolnshire County Council - December Blog
There has been a huge local reaction to the Government’s October budget, specifically changes to inheritance tax and an increase in national insurance contributions.
These changes could impact significantly on farming families, small businesses in Lincolnshire and council costs.
We have a proud farming heritage in Lincolnshire, with our county home to the UK Food Valley. Our farmers and agricultural growers supply 30 per cent of the nation’s vegetables, 18 per cent of its poultry and has a total output of more than £2billion.
From April 2026, changes to inheritance tax will mean that assets including land and equipment worth more than £1m, which were previously exempt, will be liable to be taxed at 20 per cent under these new laws.
This is an issue that could affect thousands of people living in Lincolnshire and it is an issue we want to bring to full council in a couple of weeks’ time.
Lincolnshire is home to many generations of farmers, those who have grown our food, cared for our countryside and passed on that responsibility to the next generation, so that they can continue to grow vital crops to feed our communities.
Since this budget announcement, local farmers are contacting me and fellow councillors to say they are worried that they may now not be able to pass on their land to their loved ones for fear of leaving them crippled with debt.
This could lead to many of them taking the decision of selling up, despite these farms having been in the family for generations.
By promoting our Keep Lincolnshire Growing campaign we can effectively signpost Lincolnshire businesses to vital support services including Business Lincolnshire, the Lincolnshire Rural Support Network and the Citizens Advice Service.
More information can be found at: www.lincolnshire.gov.uk/KeepLincolnshireGrowing
The October budget also included an increase in employers’ National Insurance contributions, a rise in the national living wage and further environmental and employment rules.
These measures taken together will, I believe, place massive extra burden on all business and could result in many more disappearing from Lincolnshire.
But there have been more changes to cause concern for this council. The most recent of which was the Government’s announcement of the removal of the £9m Rural Services Grant.
This reduction in funding is in addition to rising costs associated with increased demand in adult social care, children’s services and home-to-school-transport.
The council estimates that that even before these new pressures, Lincolnshire is being short-changed by more than £100m a year due to the Government’s funding formula.
While some additional money has been promised, there is also very significant cause for concern that it will not be enough to cover these huge extra costs.
We need and will be pursuing assurances from Government that we will be compensated for these additional costs in this year’s settlement.