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Farmers refusing to serve as 'fourth emergency service' in rural areas after inheritance tax changes
26 February 2025, 05:58 | Updated: 26 February 2025, 06:00
A group of farmers have told LBC that they'll no longer be a "fourth emergency service" - clearing things like fallen trees – because they need to save time and money because of changes to inheritance tax.
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Simon Orson farms 700 acres of arable land in The Vale of Belvoir, Leicestershire but says despite the size of his farm, he’s currently living on around £22,000 a year, and not the millions the Government seem to think farms exist on.
He told LBC: “If we carry on like this, and the Government charges inheritance tax, I’d have to sell off 100 acres, then there’s capital gains tax which means I’d have to sell off another 30 acres and before my son has even grown any crops, he’ll be looking at a 570 acre farm instead.”
Mr Orson said farming crops on a plot that size would mean the business is no longer viable. He explained: “Family farms would be totally decimated. My farm has been in my family for 300 years and it’s quite scary to think this really could be the end.
The government announced in the Autumn Budget that there’ll be significant reforms to inheritance tax (IHT) affecting agricultural property. The changes mean that now any farmland or business exceeding £1 million would be subject to IHT at 20%. Rachel Reeves says the measures will generate £2 billion for public services, and stop people using agricultural land as a tax shelter.
Concerned about the future of the farm for his young son, Howie, Mr Orson said: “We do so many things we don’t get paid for. Clearing snow off the road, removing fallen trees, problems with the water. We do this for the goodness of our community and country, but we won’t be able to continue doing that for free if we’re not being backed by the Government.”
“Last week I cleared a footpath locally, I brought in people to help and it cost me £500. I don’t want that money back, I’m doing it for the local community – but now I’ll leave all of that to the council to pay for. I can’t keep giving away my time and money when it really looks like I’ll have to start saving every single penny.”
Explaining that farmers don’t want to be out protesting, Mr Orson made a plea to the Treasury: “Come to the negotiation table, let’s have a frank and honest conversation. We’ll put forward facts of what our farms are actually making, because it’s nothing like the figures you’re looking at.”
He continued: “it was only five years ago we were classed as a key worker, helping to feed people across the country in the middle of the pandemic. Now we’re just seen as expendable. Labour don’t stand up for working men – they just look after themselves.”
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Yesterday, Environment Secretary Steve Reed faced a protest at the National Farmers Union Conference, when demonstrators unfurled banners in front of him. Addressing the crowd at the National Farmers' Union (NFU) conference, he acknowledged concerns over inheritance tax, admitting he couldn’t provide "the answer many of you want" but instead focused on giving farmers a fairer deal, and better profits.
A government spokesperson said: “Our commitment to farmers remains steadfast.
“This Government will invest £5 billion into farming over the next two years, the largest budget for sustainable food production in our country’s history. 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.
“Our reforms to Agricultural and Business Property Relief will mean three quarters of estates will continue to pay no inheritance tax at all, while the remaining quarter will pay half the inheritance tax that most people pay, and payments can be spread over 10 years, interest-free. This is a fair and balanced approach which helps fix the public services we all rely on.”
