Farming groups have been spooked by revelations the Labour Party is considering plans to introduce a Land Value Tax which would hit farmers.
Unveiling a radical reform of business rates to ‘stop giveaways to big corporations’, Mr Corbyn said he was ‘looking at’ the idea of bringing in a Land Value Tax to replace business rates.
Diane Abbott, Labour’s Shadow Home Secretary, fuelled speculation the party was planning introduce the tax after tweeting out a link to a website built by activists which suggested it was already policy.
NFU head of tax Michael Parker said: “We would not support the introduction of a land value tax which included agricultural land as it would simply increase the cost of UK food production with no benefit for shoppers.
“We would prefer to see the introduction of fiscal measures which encourage economic growth – ensuring farming businesses can be profitable, productive and progressive now and in the future.”
A Labour Party spokesman refused to comment on the plans, saying the manifesto would be set out in due course.