Farmers declare 'war' on inheritance tax changes as hundreds of tractors roll through London

11 December 2024, 13:34

Hundreds of tractors have descended on Westminster today as part of the latest wave of protests by farmers over changes to inheritance tax.

Hundreds of agricultural workers accompanied by heavy farming machinery descended on parliament, grasping signs baring the words 'Keir Starlin the farm killer' and denouncing the government's proposed inheritance tax plans.

The convoy was accompanied by fanfare and klaxons, as farmers stood on vehicle roofs, with supporters letting out cheers as the convoy passed by Parliament Square in central London.

The protests saw Starmer respond to a claim that his administration was "duplicitous" over changes to farmers' relief from inheritance tax, with the PM doubling down on his assertion that "the vast majority of farmers will be unaffected."

Conservative MP Jerome Mayhew quoted the Prime Minister's words back to him in the Commons as the protests rolled past outside, telling Starmer: "Losing a farm is not like losing any other business. It can't come back," said Mr Mayhew.

"Now, those are the words of the Prime Minister, that is what he said to the NFU (National Farmers' Union) in order to get their votes, so can the Prime Minister understand why farmers in Broadland and Fakenham and around the country now think that his administration is duplicitous?"

Responding, Sir Keir said on Wednesday: "I think everybody welcomes the £5 billion over the next two years that we've put in the budget - well, they shake their heads, I'm afraid they do.

"£350 million in the last week alone, compared with the £300 million underspend by the last government," Starmer continued.

"On the threshold, as he well knows, in an ordinary family case, the threshold is £3 million and that means the vast majority of farmers will be unaffected."

Outside, could be seen driving around the square, Union flags flapping in the breeze, as well as signs that read: "No farmers, no food", "Not hungry, thank a farmer", and "Save British Farming".

Another sign read "Starmer Farmer Harmer", and a second one "Reeves and Starmer, grave robbers".

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The protests saw multiple MPs, including Lib Dem leader Sir Ed Davey, respond to the Prime Minister, urging him to "change course" over plans that would impact family farms.

Speaking during Prime Minister's Questions, the Liberal Democrat leader said: "British farmers are the best in the world. They are the best in the world because of our tradition of family farms, where from generation to generation a commitment to high-quality food, to our precious environment and animal welfare is passed down.

"But family farms were let down badly by the last Conservative government, with the botched transition to new payment schemes, and their unfair trade deals with Australia and New Zealand that have undercut British farmers.

"Now many family farms feel the Government's Budget will be the final blow. So will the Prime Minister change course and recognise the vital role that British family farms play?"

There is a police presence in the area to cover the protest which is set to draw a crowd of thousands.

The "RIP British Farming" protest is organised by Kent Fairness for Farmers and Save British Farming in response to the "toxic" Budget, which included changes to inheritance tax for agricultural businesses and a faster phaseout of EU-era subsidies in favour of environmental payments.

It comes as a tax expert warned that raising inheritance tax rates to 20% for agricultural assets over £1 million will probably only "slightly" slow land price inflation.

Speaking to the Environment Committee on Tuesday, Dr Arun Advani, director of the think tank CenTax, told MPs that a 20% rate is "still much more attractive than other sorts of assets".

He said: "The concern with the way the reform has been done is that it still leaves ... roughly 20% effective rate above the threshold that's been set.

"One reason for doing that is because there are farmers who you might be concerned about, who are earning, who have wealth a bit above the current tax-free threshold, who you want to give a low rate to because of the well documented concerns about incomes of farmers.

"But the downside is it still means that if you have, say, £100 million or a billion pounds that you want to put into farmland, 20% rate is still much more attractive than other sorts of assets.

"And so what you will still have in this world is people who want to buy up agricultural land, competing with genuine farmers, who are trying to expand their farm, who really are actually wanting to work on the land. They're still going to have to compete with much better off people."

The Government insists its support for the sector is "steadfast".

After 13,000 people rallied in Westminster against the Budget last month, tractors are expected to travel into the capital from across the country, including from Exmoor, Shropshire, Somerset and the home counties, for the latest protest.

The vehicles will line up on Whitehall from 10am, there will be speeches at noon and a slow drive around central London from about 12.45pm.

The protest comes as the Government publishes a report on Wednesday analysing the state of UK food security.

And MPs on the Environment, Food and Rural Affairs Committee will hear from countryside and farming leaders and financial experts on the impacts of the changes to inheritance tax.

Ahead of the protest, the Environment Department (Defra) said it had put £343 million into the rural economy last week, in payments for nature-friendly farming activities, benefiting more than 31,000 farmers.

Defra also announced new details of its environmental land management schemes, which pay farmers for "public goods" ranging from healthy soil, rivers and hedgerows, to habitat creation and large-scale nature restoration work.

Environment Secretary Steve Reed insisted "our commitment to farmers is steadfast", as he said the cash was part of a £5 billion two-year farming budget which was "the largest ever directed at sustainable food production in our country's history".

His comments echoed those of Downing Street ahead of the protest on Wednesday.

Asked if Sir Keir was concerned farmers could get more militant and restrict food supplies, a spokesman for the PM said: "We have been very clear we are not going to change course on this policy.

"It was necessary to take tough decisions at the Budget and the spending review and those decisions remain.

"But our commitment to farmers is steadfast and our message to farmers is clear, that is why we provided £5 billion to the farming budget over two years including more money than ever for sustainable food production."

Last month an estimated 13,000 people gathered in Westminster to protest against the Budget's impact on farming, with composer Andrew Lloyd Webber, TV personality Jeremy Clarkson and leading politicians Kemi Badenoch, Sir Ed Davey and Nigel Farage among them.