Government plans to impose inheritance taxes on farms have come under fire in parliament on several fronts, as angry farmers drive their tractors through the streets.


Thousands of protesters have gathered along Whitehall for another demonstration against the ‘toxic’ budget in October, which farmers say is putting their businesses, futures and food security at risk.


Chancellor Rachel Reeves’ plans include introducing a 20% inheritance tax rate on farms worth more than £1 million and accelerating the phase-out of EU-era subsidies in favor of nature-friendly agricultural payments.


During speeches outside Downing Street, a minute’s silence was held in the streets “for all the farmers who are no longer here” amid continued concerns for the welfare of those facing the impact 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, a fourth-generation farmer on the family farm, said: “The industry is already on its knees and this is just another kick in the teeth.





Three young women holding signs that read 'With our farmers'Three young women holding signs that read 'With our farmers'



Young farmers on Whitehall during a protest against the inheritance tax changes in the budget (Stefan Rousseau/PA)



“The idea is clearly that we want to pass it on to the next generation, but farmers are asset-rich and cash-poor, we won’t have the money to pay the inheritance tax.”


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


“We should sell half the herd, half the cattle, and some of the machinery, and then you get half the income for the next year, plus the rental costs,” she said.


The protest comes as the government faced intense criticism at the Palace of Westminster on Wednesday over the changes to the inheritance exemption from farmer leaders, tax experts and opposition MPs.


Sir Keir Starmer was confronted about the plans during Prime Minister’s Questions in the House of Commons.


Liberal Democrat leader Sir Ed Davey asked whether the Prime Minister would “change course” and Conservative MP Jerome Mayhew accused Sir Keir of being “duplicitous” towards farmers during the general election campaign.


In response, Sir Keir reiterated the government’s position that “the vast majority of farmers will be unaffected”, and sought to underline the government’s pledge to spend £5 billion on agriculture over the next two years – funding that remains at the current level.





Rows of tractors parked on WhitehallRows of tractors parked on Whitehall



Dozens of tractors parked on Whitehall during the protest (Stefan Rousseau/PA)



Earlier, agriculture, land and tax experts told the Environment Committee that the policy was unlikely to have the intended effect of closing a loophole that allows wealthy people to buy up farmland to avoid inheritance taxes.


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


He said a 20% rate is “still much more attractive than other types of assets,” meaning farmers will continue to compete with wealthier people buying farmland for tax purposes.


Asked whether there are any unnecessary concerns about paying the tax, Jeremy Moody, secretary and adviser of the Central Association of Agricultural Valuers (CAAV), said the strategies ministers have outlined for how farmers will pay the tax in ten years will make payments ‘simply not realistic’. .


Mr Moody said CAAV modeling shows that the cost of paying the tax over a ten-year period could amount to around three-quarters of an additional employee in the business.


“It’s a very big shock to what the company can actually pay out of profits, leaving little or nothing for breakfast or for reinvestment,” he said.


Stuart Maggs, head of tax and partner at law firm Howes Percival, warned the committee that agricultural land earns returns of around 0.5% to 1%.


“It simply means this will become unaffordable and farms will have to sell or sell land. And it will happen a lot.”


He later added that it will be the “accidents” who will be most affected by the changes, such as those who die early and those who cannot plan.





A coffin draped with the Union flag, surrounded by fruit and vegetables, with tractors behind itA coffin draped with the Union flag, surrounded by fruit and vegetables, with tractors behind it



A coffin draped with the Union flag, symbolizing the death of British agriculture, was part of the protest (Stefan Rousseau/PA)



“That has to be a bad way to raise a tax anyway,” he said. “I don’t think taxing the unfortunate is necessarily the right way for the Treasury Department to put things together.”


Agriculture leaders told the committee they had all written to the Prime Minister, asking for a pause and full consultation to find a solution to the loophole that works for everyone.


Victoria Vyvyan, president of the Country Land and Business Association, said: “Let’s stop and think. Let’s not just rush forward, hoping against hope that this will work out or that it will turn out differently.”


Tom Bradshaw, president of the National Farmers’ Union, began to cry as he spoke about the risk the tax changes pose to farmers taking their own lives.


“No policy should ever be published that has that unintended side effect,” he said.


When arguing that money doesn’t necessarily trigger this reaction, he became emotional when he said, “It’s not money. This is a lifetime of work, it is the heritage and management of their farm.”


Asked if Sir Keir had a message for farmers protesting in Westminster on Wednesday, the Prime Minister’s official spokesman said: “This government recognizes that food security is national security; that is why we remain steadfast in our support for farmers.”


When asked whether there will be a reconsideration of inheritance tax, the spokesperson replied: “No. We have made it clear that we understand the strong feelings about the changes, but we are also clear that this will only affect a small number of estates.”



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