Photo Source: Red Zeppelin
Tractors and protest signs filled London’s Parliament Square as farmers rallied against the Labour government’s proposed inheritance tax reforms on 20 November 2024.
Organised by the National Farmers’ Union (NFU), the protest was sparked by plans to apply a 20% inheritance tax on estates over £1 million (NZ$2.1 million). Farmers expressed concerns that the changes, while targeting wealthy investors, could devastate family farms and jeopardise Britain’s food security.
Financial Pressure Amid Broader Challenges
UK farmers are already facing significant strain due to Brexit’s impact on trade, unpredictable weather, and dwindling profits. The proposed inheritance tax changes now add another layer of financial pressure.
Olly Harrison, co-organiser of the protest, said, “Everyone’s mad.” He added, “Many want to take to the streets, block roads, and go full French.“
The NFU has warned that more than 60% of family farms could be caught by the new tax rules, making it harder for these farms to remain within family hands and threatening the long-term viability of the sector.
“The human impact of this policy is simply not acceptable. It’s wrong,” said NFU President Tom Bradshaw. “It’s kicking the legs out from under British food security.”
Personal Impact on Farmers
Farmers shared personal stories about the potential consequences of the tax. Heidi Fermor, who works on her family’s fruit, vegetable, and arable farm in southeast England, spoke about why she joined the protest:
“This is my first protest because I believe government officials don’t grasp the challenges farmers face. Farming is difficult. We’re lucky to have a good life, but it’s still tough,” she said. “Our goal is to farm for the long term, for future generations, not just for the present.”
Labour’s Defence
The government has defended its inheritance tax reforms, describing them as a move towards a more equitable tax system that would primarily impact the wealthiest estates.
Treasury officials estimate that 75% of farms will be exempt from the new rules and emphasised mechanisms to prevent forced land sales.
However, critics argue that the government has neglected rural Britain, especially given the added pressures from Brexit-related trade deals and heightened competition in the global agricultural market.
Supporters of the tax argue that it will recover funds from wealthy individuals who have purchased agricultural land as an investment, contributing to the rising cost of farmland.
In a statement, the government emphasised the financial context behind its decision: “Given the strain on public services, a £22 billion fiscal deficit inherited from the previous administration, and the fact that 40% of Agricultural Property Relief goes to the wealthiest 7% of claimants, we made the difficult choice to ensure the relief remains fiscally sustainable.”
The government added that farm-owning couples will still be able to pass on up to £3 million without facing inheritance tax.
Treasury officials have also indicated that the revised farm subsidy scheme will be announced next week, providing further clarity.
Looking Ahead
Despite the government’s stance, the protest made it clear that many farmers are deeply concerned about the long-term consequences of the inheritance tax changes.
The NFU’s Tom Bradshaw summed it up: “This policy threatens the future of British family farms and, by extension, British food security.”