Scottish Borders politicians have hit out at Labour's budget for agriculture tax changes that could force family farms out of business.
John Lamont MP and Rachael Hamilton MSP said Labour's changes to inheritance tax for farmers and agricultural property relief were "damaging" after NFU Scotland highlighted the "huge difficulties" the changes will cause for farmers.
NFU Scotland said yesterday that “changes to Inheritance Tax and Agricultural Property Relief will affect the liquidity on succession for farms above the £1 million threshold set, hitting many family farms, regardless of size or type."
They added that "decisions to reinvest in these farming businesses will be shelved and the knock-on ramifications for the wider rural economy, and businesses up and downstream will be significant."
John Lamont MP said: "Labour's damaging tax changes could be catastrophic for the future of farming in the Borders.
"There is a serious risk that family-run farms will be forced out of business.
"Farmers will now fear being hammered by hefty tax hikes and the knock-on consequences across our local economy could be severe."
Rachael Hamilton MSP said: "It makes no sense whatsoever to target family farms for tax hikes.
"Labour's tax changes will be devastating news to hard working farmers who just want to pass on their farms to their children.
“Labour’s cruel decision will see the demise of hundreds of traditional working family farms who provide food for our plates, we may even see a rise in food prices.
"We will campaign hard against this harmful family farm tax, which just shows how little Labour understands or cares about rural areas like ours."