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NFU chief hints farmers could take more extreme action if government ignores inheritance tax protest

More than 10,000 farmers descended on Westminster on Tuesday to urge the government to backtrack on the levy

Millie Cooke
Political Correspondent
Wednesday 20 November 2024 09:28 GMT
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Jeremy Clarkson joins farmers' 'tractor tax' protest in Westminster

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The general secretary of the National Farmersā€™ Union (NFU) has hinted that more extreme action could be taken if the government does not backtrack on its plan to extend inheritance tax to agricultural properties, as around 13,000 people descended on Westminster to protest the levy.

Asked what he thinks farmersā€™ next steps will be, following Tuesdayā€™s demonstration, Tom Bradshaw said: ā€œI think youā€™ll have all seen the media reports about what farmers across the United Kingdom think they should be doing next.ā€

It comes as farmers have threatened the government with ā€œmilitant actionā€ over the policy, which they argue will cause food shortages and the breakup of family farms.

ā€œThe ball is in the governmentā€™s court. They have to be the ones that now decide how they react to thisā€, Mr Bradshaw told journalists at the NFUā€™s mass lobby event, which saw union members engage with around 150 members of parliament in an event held alongside the demonstration on Whitehall.

But Oliver Atkinson, a farmer from Hampshire who took part in the protest, suggested that even Mr Bradshaw would not go far enough to force the governmentā€™s hand on the issue.

Key developments:

NFU president Tom Bradshaw said 75 per cent of farms would be affected
NFU president Tom Bradshaw said 75 per cent of farms would be affected (The Independent)

He told The Independent there is a feeling among the agricultural community that the NFU chief needs to take a tougher approach in his talks with ministers, and be more supportive of protests and demonstrations.

Mr Atkinson said he expects further local action to be taken following on from todayā€™s protest if the government doesnā€™t backtrack.

Tuesdayā€™s protest saw TV personality Jeremy Clarkson urge the government to back down over the policy, saying it is a ā€œhammer blow to the back of the headā€ for the agricultural industry.

He begged the government to ā€œaccept this was rushed through, wasnā€™t thought out, and was a mistake.ā€

Meanwhile, Tory leader Kemi Badenoch promised to reverse the policy if her party wins the next election, describing it as ā€œcruel and wrongā€.

But ministers have since doubled down on the policy, with environment secretary Steve Reed on Tuesday afternoon saying many farmers protesting on the streets are wrong about its implications and rejecting claims that many in the sector will be affected by the plans.

Robert Jenrick poses under a ā€˜Starmer the farmer harmerā€™ banner
Robert Jenrick poses under a ā€˜Starmer the farmer harmerā€™ banner (Robert Jenrick)

Sir Keir Starmer, meanwhile, denied that the Labour budget is waging a class war with the changes to inheritance tax, and the plan to impose VAT on private schools.

ā€œNo, absolutely not. It isnā€™t at all what weā€™re doingā€, the prime minister told Sky News from the G20 summit in Brazil, insisting the ā€œvast majority will be unaffectedā€ by the policy.

First unveiled in chancellor Rachel Reevesā€™s October Budget, the plans to impose the duty on farms worth more than Ā£1m have sparked fury among rural communities, who have contested the governmentā€™s assertion that small family farms will not be impacted by the changes.

Tom Morphew, from Full Circle Farms in Sussex, told The Independent he has come to London for the protest ā€œto stand up for the next generation of farmersā€, adding: ā€œIf this carries on there wonā€™t be a next generation of farmersā€.

ā€œItā€™s not just about the tax, itā€™s about foodā€, he warned. ā€œThatā€™s what all these people here do, produce food. If we canā€™t do it, weā€™re going to rely on food from Peru, Spain or Portugal ā€“ and when they have a flood or a war, we wonā€™t get the food. It will go to their people first and weā€™ll be stuffed and food prices will soarā€.

While the protest was largely peaceful, footage emerged of tractors ploughing into a no entry sign in Westminster - an incident the Metropolitan Police later confirmed would be reported.

Oliver Atkinson and Christopher Moar from Hampshire at the farmerā€™s protest in Westminster
Oliver Atkinson and Christopher Moar from Hampshire at the farmerā€™s protest in Westminster (The Independent)

Scotland Yard said that they had been engaging with those driving the vehicles but said that driving through a no entry sign was ā€œnot acceptableā€.

In a joint statement with Mr Reed on Monday, Ms Reeves defended the policy, insisting the government had taken difficult decisions to fix gaps in the public finances.

ā€œThe reforms to agricultural property relief ensure that wealthier estates and the most valuable farms pay their fair share to invest in our schools and health services that farmers and families in rural communities rely on,ā€ the pair said.

They added: ā€œFarmers are the backbone of Britain, and we recognise the strength of feeling expressed by farming and rural communities in recent weeks. We are steadfast in our commitment to Britainā€™s farming industry because food security is national security.

ā€œItā€™s why we are investing Ā£5bn into farming over the next two years ā€“ the largest amount ever directed towards sustainable food production, rural economic growth and natureā€™s recovery in our countryā€™s history.ā€

Mr Reed met with Mr Bradshaw on Monday evening ahead of the protest. However, the government did not line anyone up to attend the mass lobby of MPs on Tuesday morning.

Children ride on toy tractors as part of the farmersā€™ protest in central London (Gareth Fuller/PA)
Children ride on toy tractors as part of the farmersā€™ protest in central London (Gareth Fuller/PA) (PA Wire)

The NFU chief suggested there is division within the cabinet over the tractor tax, claiming that Rachel Reeves has entirely ā€œrefused to engageā€ with farmers on the policy.

Asked by The Independent whether he believes there is a disconnect between the Department for Environment, Food and Rural Affairs (Defra) and the Treasury, he said: ā€œThe very fact that weā€™re even arguing about the figures suggests that the foundations of this policy are very weak.

ā€œWe know that Defra figures show something very different to Treasury figures. Treasury are obviously working off historic claims.ā€

After meeting with Mr Reed on Monday night, he said it was clear that Defra was ā€œnot consultedā€ about the policy.

ā€œThereā€™s probably some very interesting conversations going on behind closed doors that weā€™re not privy toā€, he added.

Treasury data shows that around three-quarters of farmers will pay nothing in inheritance tax as a result of the controversial changes.

But farmers have challenged the figures, pointing instead to data from Defra, which suggests 66 per cent of farm businesses are worth more than the Ā£1m threshold at which inheritance tax will now need to be paid.

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