Government ministers have insisted there will be no u-turn over changes to inheritance tax that the NFU has warned could lead to the collapse of numerous family farms, as thousands of farmers marched on London in protest.
A rally on 19 November attracted thousands of farmers from across the UK, and politicians from across the political spectrum. Opposition leader Kemi Badenoch addressed the crowd, calling the change in policy ‘cruel’, while Jeremy Clarkson told the government it needed to do the ‘big’ thing and reverse the policy.
The tax reforms announced in the budget could affect the viability of handing down family farms, and groups such as the NFU are concerned about the impact not only on individual farms but about food security and the sustainability of rural economies.
From 2026, inheritance tax will be levied on agricultural properties worth over £1m at a rate of 20%. Previously, they had been exempted. Businesses with assets but low turnover fear they will have to sell up to pay.
NFU president Tom Bradshaw said he had never seen the industry this angry, disillusioned and upset. “You don’t need me to tell you farmers and growers have put up with a hell of a lot, but it takes something extraordinary to get us to react like this.”
“We know what this means for our families, for our children, for our future. We know the horrendous pressure it is putting on the older generation of farmers who have given everything to providing the food for this country.
“We know that any tax revenue will be taken from our children and raised from those that die in tragic circumstances or within the next seven years.
“The human impact of this policy is simply not acceptable. It’s wrong.”
In his first appearance in front of the EFRA Select Committee, Defra secretary of state Steve Reed insisted the change would affect only a small number of farms and that it was right the government closed a loophole that had allowed some wealthy people to buy land in order to avoid tax.