Farmers set to descend on Westminster over inheritance tax row
Farmers from across the UK are heading to London to urge the Chancellor to reconsider changes to inheritance tax
Last updated 19th Nov 2024
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.
The row erupted after the changes were announced in the Chancellor's budget last month.
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.
Farmers say they feel "betrayed".
The NFU say they hope their lobby will bring to life the impacts of the policy change on its members farms, on British farming and on food supply.
National Farmers' Union President, Tom Bradshaw, says: "We have a Government saying food security is a critical part of national security, yet they’ve ripped the rug out from that very industry which is going to invest in food security for the future.”
Treasury data shows that around three-quarters of farmers will pay nothing in inheritance tax as a result of the controversial changes announced in the Budget last month.
However, farmers have challenged the figures, pointing instead to data from the Department for Environment, Food and Rural Affairs which suggests 66% of farm businesses are worth more than the ÂŁ1 million threshold at which inheritance tax will now need to be paid.
What are the politicians saying?
Speaking to broadcasters at the G20 summit in Brazil on Monday, Sir Keir Starmer insisted “the vast majority of farms” will not be affected by the reforms.
“On the question inheritance tax, look I do understand that it’s causing concern,” the Prime Minister said.
“But if you take a typical case of a couple wanting to pass a family farm down to one of their children, which would be a very typical example, with all of the thresholds in place, that’s £3 million before any inheritance tax is paid.
“And that’s why I’m confident that the vast majority of farms and farmers will not be affected at all by that aspect of the budget.
“They will be affected by the £5 billion that we’re putting into farming, and I’m very happy to work with farmers on that.”
Ahead of the protests, Conservative leader Kemi Badenoch said her party would “staunchly oppose the family farm tax, which threatens our vital rural economy and our food security, with increased costs and a greater reliance on imports”.
The party pointed to figures from the Country Land and Business Association (CLA) that suggest an average 250 acre arable farm will be forced to sell 20% of its land under Labour’s plans.
“The Labour Government clearly doesn’t understand, or care about rural communities, and now families are having to sell their farms, with knowledge that has been handed down through generations lost forever,” Mrs Badenoch said.
The Liberal Democrats warned subsidies for farmers have fallen by 20% in real terms since 2015, and 8,100 farms were lost across the UK in 2023.
In a joint statement Ms Reeves and Environment Secretary Steve Reed said farmers were the backbone of Britain and acknowledged the “strength of feeling” from farming and rural communities in recent weeks.
They insisted they were “steadfast” in their support of British farming, saying: “It’s why we are investing £5 billion into farming over the next two years – the largest amount ever directed towards sustainable food production, rural economic growth and nature’s recovery in our country’s history.
But they said: “With public services crumbling and a £22 billion fiscal hole that this Government inherited, we have taken difficult decisions.
“The 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.”