In a Scottish Conservative-led debate at Holyrood, the SNP, Scottish Liberal Democrats and the Conservatives voiced strong concerns about Rachel Reeves’ budget which saw a cut to Agricultural Property Relief, ‘Barnetisation’ of the Agriculture Budget and an increase in pick-up vehicle taxes.

In particular, the cut to relief on Agricultural and Business Property for Inheritance Tax was recognised as a threat to the future of farming and food security in Scotland, with Rural Affairs Secretary Mairi Gougeon concurring with SLE’s call for the UK government to undertake and publish impact assessments on the cumulative impact of its budget proposals on farmers and crofters in Scotland.

Additionally, First Minister John Swinney addressed the AgriScot conference at Ingliston and spoke of the failure to differentiate between asset rich and cash rich businesses when it came to family farms and inheritance tax.

Sarah-Jane Laing, chief executive of Scottish Land & Estates, said: “The recent UK Budget delivered a triple blow to Scotland’s rural economy and we’re pleased that parliamentarians at Holyrood have today recognised the deep problems that has been created for businesses, particularly family farms.

“The removal of inheritance tax relief is one of several announcements in the UK Budget that disproportionately impacts on rural businesses. On top of this announcement, farmers must now contend with an increase in taxation of double cab pick-ups – an essential workhorse and much more than just a mode of transport for rural businesses; the uncertainty brought about by removing ringfencing of the Agricultural Budget, alongside the unavoidable increase in Capital Gains Tax, and hike in Employer National Insurance.”

Ms Laing continued: “The cumulative effect of these measures threatens the immediate viability and future sustainability of thousands of rural businesses across Scotland.

“In light of these damaging proposals, the UK government should listen to rural communities whose economies are underpinned by family farms and reverse their decision to cut relief on the inheritance of agricultural and business property.

“A flourishing rural economy is key to tackling many of the issues facing the whole of the UK, whether its delivering food security, tackling climate change, reversing the tide of rural depopulation and sustaining the critical mass of smaller towns and villages.

“There is a chance for both the UK and Scottish governments to take positive action to provide farming and rural businesses with much-needed stability and we would urge them to grasp that opportunity.”