UK (Parliament Politics Magazine) – British farmers are protesting against the government’s inheritance tax changes, raising concerns that the new policies will harm the agricultural industry.
Farmers across the UK are staging demonstrations on Saturday to record their opposition to the tax reforms. They warn that Labour’s “tractor tax” could severely impact the nation’s farming sector.
A livestock farmer from the South Pennines and vice president of the National Farmers’ Union (NFU), Rachel Hallos, warned that the extension of inheritance tax to agricultural properties has been a major source of anxiety for farmers.
Why are farmers across the UK protesting inheritance tax?
As reported by The Independent, protests are taking place nationwide on Saturday as farmers oppose the inheritance tax reforms, which would impose a 20% inheritance tax on farms valued at £1 million or more.
As part of the National Day of Unity, the NFU is holding demonstrations where farmers will bring food, tractors, and livestock to town centres across England, Wales, Scotland, and Northern Ireland.
These protests come after a petition signed by over 270,000 individuals was delivered to 10 Downing Street on Friday by NFU president Tom Bradshaw and NFU Cymru president Aled Jones, urging the government to reconsider the controversial “family farm tax.”
Why does Rachel Hallos believe the government’s inheritance tax reforms will harm rural businesses?
According to Ms. Hallos, the purpose of Saturday’s protests is to highlight the effects of the planned inheritance tax reforms and call on the government to review its decisions.
While heading to a protest in Chester, Cheshire, she expressed, “The inheritance tax changes from the budget will ultimately decimate what we’ve currently got in this country, and we’re really worried about it.”
Ms. Hallos said that the intention of the demonstration is to shed light on the complexities of the food supply chain, with farmers being fundamental to this issue, and called for people to understand the intricate nature of the system and the concerns driving the protests.
She criticized the government policies and stated, ““Food and environment just don’t seem to be important to this government.”
What are the protest locations and the NFU’s stance on nationwide protests?
A spokesperson for the NFU stated that Saturday’s events, which will be held in locations like Cambridge, Warwick, and Selby in North Yorkshire, are designed to increase the reach of their campaign against the proposed tax.
They added, “It’s about going out to the public in the town centres and thanking them for their support, encouraging them to keep supporting farming. The visibility is about a reminder that the problem is still there.”
What are the government’s plans for investing in farming and reforming inheritance tax?
A spokesperson from the government stated,
“Our commitment to farmers remains steadfast. This government will invest £5bn into farming over the next two years, the largest budget for sustainable food production in our country’s history.”
It continued,
“We are going further with reforms to boost profits for farmers by backing British produce and reforming planning rules on farms to support food production.”
The spokesperson said the government’s changes to agricultural and business property relief will decrease the inheritance tax rate to 20% for estates, compared to the standard 40%, with interest-free payments distributed over one decade.
Why did farmers disrupt the environment minister’s speech on the UK’s agricultural future?
Earlier this month, in an angry response to the inheritance tax reforms, farmers protesting tried to interrupt Environment Minister Steve Reed’s speech, in which he detailed the government’s proposed ‘new deal’ for UK agriculture.
On this demonstration, nearly 40 tractors made their presence known in Oxford city centre, honking their horns as a protest.
During his address at the conference, Mr. Reed said he was sorry that his decisions had upset farmers but stated,
“Stable finances are the foundation of the economic growth needed.”