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Jeremy Clarkson has urged the Labour government to “please back down” as he warned that the proposed inheritance tax hikes could be “the end” for farmers.
He has joined farmers for a large-scale protest in London on Tuesday to urge the government to change course over its plans, which have been described as a “stab in the back”.
First unveiled in chancellor Rachel Reeves’s Budget, the plans to impose inheritance tax on farms worth more than £1m have sparked fury among rural communities, who have contested the government’s assertion that small family farms will not be impacted by the changes.
The National Farmers’ Union (NFU) has organised an event in which 1,800 of its members will meet with local MPs at Westminster to voice their anger on Tuesday, as thousands are also separately expected to stage a demonstration in Whitehall.
NFU president Tom Bradshaw said an estimated 75 per cent of commercial farm businesses “were caught in the eye of this storm” of a policy which will “rip the heart of family farms”.
The government argues that tax exemptions have led to wealthy non-farmers seizing agricultural land and pricing out genuine young farmers, and point to Budget funding of £5bn to help farmers produce food.
Farming industry treated with ‘contempt’ by Steve Reed, says NFU president
Environment Secretary Steve Reed has treated the farming industry with “contempt”, the president of the National Farmers’ Union (NFU) said.
Tom Bradshaw told LBC: “The way he’s treated the industry with contempt in what he’s been writing has landed very, very badly.”
Of the meeting he had with Mr Reed on Monday, the union president said: “I hope the Secretary of State was listening, I hope the Government are listening, I want to sit down with the Chancellor and sort this mess out.”
Asked about how many farmers will be affected by the changes to inheritance tax, Mr Bradshaw said: “There’s huge mistrust in the numbers, even Defra and the Treasury can’t agree on the number.
“Our numbers suggest that 75 per cent of commercial farms, those farms producing this country’s food, are caught in the eye of this storm.”
On the seven-year gifting rule, Mr Bradshaw said the farmers in the “twilight of their careers” who may not expect to live for that amount of time “have been cut off at the knees”.
Holly Evans19 November 2024 08:52
‘The tractor tax means we’re sleepwalking into food shortages’
When I was growing up in rural Lincolnshire, I remember my best friend’s dad would always use a certain saying. They lived right out in the fenland – among fields carpeted with cabbage and cauliflower, and giant skies that dwarfed the flat horizon. “You can’t catch old birds with chaff,” he’d warn. The sentiment is that the wise could not be easily fooled. The chaff – worthless husks of corn – would not suffice to convince the astute of a weak idea.
The phrase has come to mind a lot recently as family farms come under threat of the newly proposed tractor tax. Since the Budget, when Labour announced that there would be a 20 per cent tax hike on inherited agricultural assets worth more than £1m, the countryside has been alight with fury.
Keir Starmer insists that the tax is there to catch any farmers buying up land to avoid inheritance tax and no one else – that only the “wealthiest 500 estates each year with smaller farms not affected”. The birds are not convinced.
Zoë Beaty talks to farmers who tell her of an industry in crisis:
That’s the message thousands of farmers will deliver in a mass protest against Labour’s tax this week. Here, Zoë Beaty talks to some of them who tell her of an industry in crisis, why the proposed plans could have far-reaching consequences and that Keir Starmer needs to remember that you reap what you sow...
Holly Evans19 November 2024 08:45
Do you support the ‘tractor tax’ on inherited farms?
The government’s proposed inheritance tax hike on farms has sparked a fierce debate between those who see it as a necessary fiscal reform and those who warn it could devastate family farming and the rural economy.
Critics, including the National Farmers’ Union (NFU), warn that this policy could jeopardise family farms, which make up approximately two-thirds of Britain’s agricultural base.
Now we want to know what you think. Is the ‘tractor tax’ a fair approach to reform inheritance tax, or does it risk dismantling the fabric of family farming?
Share your thoughts here — we’ll highlight the best responses as they come in.
Holly Evans19 November 2024 08:42
165 MPs meeting NFU members at mass lobby
While there is a wider protest taking place from 11am, the NFU is concentrating on a mass lobby event taking place from 9am.
It will see 1,800 members meeting MPs across several locations, including Portcullis House.
They will use the opportunity to share their concerns over Labour’s decision to change inheritance tax rules on farmers.
Speaking to officials on a bus from the West Country this morning, I understand around 165 MPs have agreed to meet members. Those who have not accepted an invitation will be sent ‘green cards’ to come down to meet constituents.
Among those believed to be meeting NFU members is Labour’s MP for Forest of Dean, Matt Bishop.
Yesterday, Mr Bishop, who won his seat with a majority of fewer than 300 votes, said: “We have had to make difficult decisions to navigate the significant financial pressures inherited from the previous government, but I want to reassure my constituents that my focus on farming and rural issues remains unwavering.”
Alex Ross 19 November 2024 08:38
‘Catastrophic’ inheritance tax will impact nation’s food security
Changes to inheritance tax paid by farmers are “catastrophic” for the agricultural sector, a farmer has said.
Thousands of farmers are descending on the capital to protest against planned changes to agricultural property relief.
Farmers are arriving at Church House Conference Centre where NFU members are meeting on Tuesday morning.
Tom Walton, a farmer from Buckinghamshire, said: “My motivation is to try and engage with the Government to make them understand why the changes that they’ve made in the Budget are so catastrophic for the agricultural sector and the nation’s food security in general.
“This is likely to be the first of many engagements that we have with the Government. If today is successful, then that’s terrific, and if not then we will continue to apply pressure.”
The inheritance tax has been described as ‘catastrophic’ for farmers (AFP via Getty Images)
Holly Evans19 November 2024 08:30
NFU president warns tax changes could affect food security
The president of the National Farmers’ Union (NFU) has said farmers will continue to push back until the Government scraps agricultural inheritance tax changes.
He told Sky News: “This will carry on. They cannot have a policy in place which has such disastrous human impacts and think we’re going to go quiet.
“We don’t know what’s next, but I know the membership have never been so united in trying to overturn something in the time that I’ve been farming.”
Asked if farmers will continue on this path until the Government changes its mind, Mr Bradshaw said: “Absolutely.”
The NFU president also warned the tax changes could affect the country’s food security.
He told the broadcaster: “Up until now, any cash which is being generated from a farm business has been reinvested to deliver food production tomorrow, to deliver the food security that Sir Keir Starmer says this country needs.
“But, now, instead of reinvesting in food production it’s going to go into our pensions and into life insurance rather than investing in the very infrastructure that delivers the food security this country needs.”
Holly Evans19 November 2024 08:23
Why are farm owners demonstrating over inheritance tax?
Thousands of farmers are expected to protest near Westminster tomorrow to express their anger at changes put forward in Labour’s October Budget.
Shadow environment secretary Victoria Atkins has condemned the Government’s “economically illiterate” approach to tax.
She told GB News: “If any of us care about our countryside, if we want to see the picturesque views that we have – across my home county of Lincolnshire, but (also) across the country – if we care about the quality of our crops, if we care about animal welfare, then family farming in the United Kingdom is critical to achieving all of these aims.
“And this claim that Labour has come up with today to try and divert attention away from the march, that somehow this inheritance tax and this rise in national insurance is to pay for the NHS, is economically illiterate.
“Because, as we know, this is going to raise a fraction of what, in fact, we put into the NHS and are proud to do so.”
Chancellor Rachel Reeves and Environment Secretary Steve Reed have said the reduction in inheritance tax relief offered to farmers would “ensure that wealthier estates and the most valuable farms pay their fair share to invest in our schools and health services”.
Farmers protest outside the Northern Farming Conference in Hexham in Northumberland against the government’s proposals to reform inheritance tax (IHT) rules. (PA Wire)
Holly Evans19 November 2024 08:13
Labour has destroyed ‘contract’ between farmers and government, NFU president says
Labour has “destroyed” a “contract” between farming and the government dating back to the Second World War with its changes to inheritance tax, the president of the National Famers’ Union (NFU) has said.
Tom Bradshaw told Sky News: “There’s always been an understanding, a contract, between farming and society, farming and the government, ever since the Second World War, and this Labour Government have just destroyed that contract with the changes they proposed to the inheritance tax.”
He said NFU members are “asset-rich but cash-poor”.
“We’d love to pay more tax,” Mr Bradshaw continued. “If we get proper margins from food production, and we end up swelling the Treasury coffers, bring it on.
“But at the moment the supply chain doesn’t give us those returns that enables us to save the money to pay the inheritance tax that this Government now wants to take.”
He added that Environment Secretary Steve Reed said when he was in opposition that the Government would not change agricultural property relief.
“This industry has been betrayed,” Mr Bradshaw went on. “They said they wouldn’t make this change and suddenly they’ve gone ahead and done it.”
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