Farm tax changes under fire in parliament as angry farmers protest outside

LONDON: Government plans to impose inheritance tax on farms have come under fire on several fronts in Parliament as angry farmers drive their tractors through the streets outside.

Thousands of protesters gathered along Whitehall for another demonstration against the “toxic” Budget in October which farmers say puts their businesses, futures and food security at risk.

Chancellor Rachel Reeves’s plans include the introduction of a 20 per cent inheritance tax rate on farms worth more than £1 million and speeding up the phase-out of EU-era subsidies in favour of nature-friendly farming payments.

During speeches outside Downing Street, a minute of silence was held in the streets “for all the farmers who are no longer here” amid ongoing concern for the wellbeing of those facing the impacts of the changes.

Will Elliott, 50, drove his tractor for three hours from his farm near Grafham, south of Guildford in Surrey, to attend the protest.

Speaking to the PA news agency, Mr Elliot, who is a fourth-generation farmer on the family farm, said: “The industry is already down on its knees and this is just another kick in the teeth.

“Obviously, the idea is that we want to pass it down to the next generation, but farmers are asset-rich, cash poor, we’re not going to have the money to pay the inheritance tax.”

Claire Fifield, 26, who lives in London but regularly takes time off to help her step-family run their farm in Amersham, Buckinghamshire, said they are tenant farmers who now fear they will not be able to pass down the business.

“We’d have to sell half the flock, half the cattle, sell some of the machinery, then you got half the income for the next year, plus the rental costs,” she said.

The protest comes as the Government faced intense criticism over the inheritance relief changes from farming leaders, tax experts and opposition MPs inside the Palace of Westminster on Wednesday.

Sir Keir Starmer was confronted about the plans at Prime Minister’s Questions in the Commons. Liberal Democrat leader Sir Ed Davey asked if the Prime Minister would “change course” and Conservative MP Jerome Mayhew accused Sir Keir of being “duplicitous” to farmers during the general election campaign.

In response, Sir Keir reiterated the Government’s line that “the vast majority of farmers will be unaffected”, and he sought to highlight the Government’s pledge to spend £5 billion on farming in the next two years – funding that maintains current levels.

Earlier, farming, land and tax experts told the Environment Committee the policy would unlikely have the intended effect of closing a loophole, which enables wealthy people to buy up agricultural land to avoid inheritance tax.

Dr Arun Advani, director of the think tank CenTax, told MPs it is likely the inheritance tax changes will only “slightly” slow land price inflation.

He said a 20 per cent rate is “still much more attractive than other sorts of assets”, meaning farmers will continue to compete with wealthier people purchasing agricultural land for tax purposes.