Farmers set to protest over ‘completely unacceptable’ inheritance tax changes
Government is insisting the introduction of inheritance tax on farm businesses worth more than £1m is ‘fair’ and closes a loophole.
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Your support makes all the difference.Large demonstrations by farmers are expected in London on Tuesday as they fight to reverse “absolutely unacceptable” changes to inheritance tax.
The National Farmers’ Union (NFU) is holding a mass lobby of MPs with 1,800 of its members – three times as many people as originally planned – to urge backbenchers to stand up to the Government’s plans to impose inheritance tax on farms worth more than £1 million.
And thousands more are expected to join a separate rally in Whitehall as they protest against last month’s Budget, which also sped up the phase out of EU-era subsidies as funding is switched to nature-friendly farming schemes.
Celebrities including TV presenter and farmer Jeremy Clarkson – who told the Times in 2021 that avoiding inheritance tax was “critical” in his decision to buy land – are expected to join the rally.
Organisers and farming leaders say they have no concerns over potential trouble despite speculation over far right protesters attending.
While a procession to Parliament Square will be spearheaded by children on toy tractors, organisers have told those coming that they should not bring their farm machinery.
It is the largest show of anger to date over the inheritance tax changes for farming businesses, which limit the 100% relief for farms to only the first £1 million of combined agricultural and business property.
For anything above that, landowners will pay a 20% tax rate, rather than the standard 40% rate of inheritance tax (IHT) applied to other land and property.
Ahead of the protests, Environment Secretary Steve Reed – who was meeting with NFU president Tom Bradshaw on Monday evening – defended the changes as “fair and balanced”, saying it would only affect 500 estates a year and small family farms would not be hit.
Small farmers deserve all of our support – and they’re not helped by giving tax breaks to wealthy investors
Writing in the Daily Telegraph, Mr Reed said exemptions for agricultural land had led to wealthy individuals from non-farming backgrounds buying up land to avoid paying inheritance.
That had forced up rural land prices, “robbing young farmers of the dream of owning their own farm”.
And he said: “It’s become the most effective way for the super-rich to avoid paying their inheritance tax – and it’s costing other taxpayers a whopping £200 million.”
Speaking to reporters on his way to the G20 summit in Brazil, Sir Keir Starmer said it was important to support farmers, pointing to £5 billion over two years for farming in England, and said he was “absolutely confident the vast majority of farms and farmers will not be affected” by the tax changes.
Campaigner and author Guy Shrubsole has highlighted the inequality of land ownership in England, with 18% of land owned by corporations and a further 17% by oligarchs and bankers.
And he said data from the Environment Department (Defra) showed just 2,500 of the largest farms owned a quarter of England’s land, while 59% of farms were less than 50 hectares.
He said: “Small farmers deserve all of our support – and they’re not helped by giving tax breaks to wealthy investors who’ve been snapping up farmland as a handy tax shelter, inflating the price of land and starving public services of cash.”
But farmers have pointed to other data from Defra which suggests 66% of farm businesses are worth more than the £1 million threshold at which inheritance tax will now need to be paid.
Olly Harrison, one of the rally’s organisers, said of the Government: “They don’t know their own figures, they have not done any homework whatsoever.
“It’s embarrassing for them, how little research they’ve done on this before they brought it in.”
He warned the move could destroy UK food production, with family businesses in food processing and retailing, as well as farming, at risk from the changes.
He said the rally aimed to show “this is what we do, this is what we produce, this is whose future is being taken away”.
There's a complete disillusionment and distrust, and feeling of betrayal
Mr Bradshaw said the mass lobby aimed to get MPs to push the Government to reverse the changes, which had left older farmers in particular in the “cruellest of predicaments”, unable, for example, to take advantage of the seven-year exemption for gifting assets.
“It’s absolutely unacceptable, the human impact of this, the pressures they have put on these people who have given everything to this country.”
The NFU president added: “There’s a complete disillusionment and distrust, and feeling of betrayal, that (the Government) doesn’t understand food production or even want to understand food production.
“Farmers are cross, they’re worried, they feel they’ve nothing to lose, I don’t know where this ends,” he said, adding it was within the power of the Government to take the next step.
“I don’t believe the Government have any choice but to rethink this policy,” he said.
Mr Bradshaw said he expected Tuesday’s events to be a “great demonstration of the very best traditions of the countryside”, with people being respectful but passionate, while Mr Harrison said he was not concerned about potential trouble from far right groups at the rally.
A Met Police spokesperson said the force was “well prepared” for Tuesday’s protest and had had positive discussions with its organisers.
“We will have officers deployed in the vicinity to ensure the event takes place safely, lawfully and in a way that prevents serious disruption.”
The spokesperson added: “We are aware of speculation online that we have tried to ban tractors from the event.
“This isn’t true – we’ve policed protests involving tractors previously without any major issues and we have plans in place to do so again if required.”