Farmers across the UK have launched a wave of protests against Labour’s proposed inheritance tax reforms, which they warn could “decimate” the agricultural sector.
The controversial policy, dubbed the “tractor tax,” extends inheritance tax to farms valued at £1 million or more, imposing a 20% levy that many fear will cripple family-run businesses.
Rachel Hallos, a livestock farmer from the South Pennines and vice president of the National Farmers’ Union (NFU), has been a vocal critic of the tax changes. Speaking ahead of a National Day of Unity protest in Chester, she described the reforms as a significant threat to the country’s food supply chain.
“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. Today is about telling people why we are so concerned, trying to explain how complicated the food supply chain is, because it really is, and that farmers are at the beginning of that food supply chain.”
Rachel Hallos
The NFU has organized demonstrations in cities and towns across England, Wales, Scotland, and Northern Ireland, drawing attention to the potential impact of the tax policy. Farmers have brought tractors, livestock, and produce to town centers in a bid to connect with the public and garner support.
The protests follow the delivery of a petition signed by over 270,000 people to 10 Downing Street on Friday. NFU President Tom Bradshaw and NFU Cymru President Aled Jones led the effort, urging the government to abandon what they described as the “devastating family farm tax.”
The demonstrations have also gained backing from unexpected allies. Major supermarket chains, including Tesco, have joined the call to halt the reforms, warning that the policy could jeopardize the UK’s food security.
Despite the growing opposition, Treasury Minister James Murray defended the reforms in Parliament, stating that the government is “committed to delivering the reforms announced at the Budget.” He added that the changes represent a “fair approach” to funding public services.
Industry Concerns Over Economic Impact
Critics argue that the policy fails to account for the interconnected nature of rural businesses. Hallos expressed frustration over what she perceives as the government’s lack of understanding.
The Office for Budget Responsibility (OBR) has also cast doubt on the financial viability of the reforms. A recent report suggests the projected £500 million annual revenue is uncertain and could decline over time as families seek ways to minimize their tax burden.
The government insists that only farms worth over £3 million will be affected, representing approximately 28% of family farms. However, figures from the Department for Environment, Food & Rural Affairs (Defra) suggest the impact could be far broader, potentially affecting up to 66% of farms.
NFU representatives emphasize that the protests aim to raise public awareness and maintain visibility for their campaign.
“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.”
NFU spokesperson
In response to the criticism, a government spokesperson highlighted their commitment to investing £5 billion in sustainable food production over the next two years.
They also noted that the reforms would allow estates to pay a reduced inheritance tax rate of 20%, spread over 10 years, interest-free. “This is a fair and balanced approach, which fixes the public services we all rely on, affecting around 500 estates a year,” the spokesperson said.
As protests continue, farmers hope to pressure the government into reconsidering the reforms, emphasizing the critical role agriculture plays in the nation’s economy and food security.
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