Starmer warns of ‘militant’ farmers over ‘tractor tax’ legacy

Ministers have been warned they face a “backlash” from farmers over a so-called tractor tax to impose inheritance duties on family farms worth more than £1m.

The warning came from the president of the National Farmers’ Union (NFU) Tom Bradshaw when he met the environment secretary Steve Reed about the vulnerability in the Budget, while protests are planned for 19 November when Angry farmers are set to descend on London.

The row over the inheritance tax changes has been over the lack of extra money for farming in Rachel Reeves’ announcement last week as well as increased costs with an increase in national insurance for employers and a 6.7 per cent pay rise. you are low.

Britain’s farming woes saw a senior MP warn during a debate in the Commons to remind ministers that the farming sector has one of the highest rates of suicide and Budget changes could make it worse. mental health crisis among farmers.

During a quick question in parliament, Tory MP Sir Geoffrey Clifton-Brown, himself a farmer, read an email from a distraught 75-year-old farmer in his constituency raising the potential impact present in the lives of farmers.

He said: “How would the pastor respond to my 75-year-old farmer who sent me an email last week. He said: ‘We work long hours, often alone, agriculture has the highest suicide rate of any industry. These days there is a lot of talk about mental health and the need to reduce stress at work. However the Chancellor and the Secretary of State for Agriculture last week destroyed everything I have ever worked for.’

“How could he answer that?”

Pastor of agriculture Daniel Zeichner responded: “I would assure him that I am afraid that I do not think he is right about that. We are determined to make sure that you will give your farm as others have done before. ”

After his meeting with the Secretary of State earlier in the day, Mr Bradsaw said the “tractor tax” by changing inheritance laws on previously exempt land was “absolutely unfair”. .

He said he had yet to see “the weight of support, the power of opinion and the anger” over plans to impose inheritance tax on farms worth more than £1m, adding that many farmers were they wanted to be “warriors” about it.

Under plans announced in the Budget, inheritance tax will be levied at 20 per cent on farms worth more than £1m, although the chancellor has said that in some cases the limit could be £3m.

The move has caused great tension in farming and rural communities, and has sparked debate over how many farms and agribusinesses will be affected.

Speaking after a meeting with Mr Reed and Treasury secretary James Murray, Mr Bradshaw challenged the figures from the Treasury, that only a small number of farms would be affected.

He said: “Obviously we completely disagree with the figures that the Treasury used and we played Defra’s figures.

“So while the Treasury says only 27 per cent of farms will be eligible for these changes, Defra’s own figures suggest two-thirds of farms will be.”

“How they can have such a big difference within the government is unbelievable.”

He said he has been getting calls from middle-aged people who are running successful businesses, but whose parents are still in the family home and partners in the business, and who may not live seven years. , which is the minimum period after the transfer of property for inheritance tax to not apply.

Mr Bradshaw said, “There is no way for them.”

And he said: “We will continue to try to work with the government to reach a solution but something has to change.

“I’ve never seen the level of support, emotional power and anger that exists in this industry today.

“Many of them want to be soldiers.

“Now we are not advocating that in any way shape or form, but the government needs to understand that there is a real power of opinion driving what this change means for the future of family farming in this country.”

Bizza Walters, 26, a freelance solicitor and fourth-generation farmer from Warwickshire, said there was “no way” her family could afford the tax if her father and uncle I transferred their 500-hectare farm to him and his cousin.

Listening to the Budget with her father, Ms Walters said: “We both looked at each other and thought: ‘Oh my god this is going to destroy our industry.’

Ms Walters has warned that young people will start looking for jobs away from farming, like her, threatening UK food security in the future.

“I want to work full-time on the farm because it’s what I love and it’s the industry I want to be in, but I’m actually happy that I found another job now,” he said. “It’s very sad because that’s what I want to do. I grew up here… I am the fourth generation.”

Chancellor Rachel Reeves told the BBC Sunday with Laura Kuenssberg: “A very small amount of agricultural property will be affected, but last year the benefits of the relief of agricultural property, 40 percent of the benefit, were felt by 7 percent of the landowners who are rich in the most.

“I don’t think it’s possible to continue with donations like that when our public finances are under so much pressure.”

But the NFU said that many family farms have high property values, but very low incomes, which means that many owners will not be able to meet inheritance tax rates, without selling. property.

The issue was raised in an urgent question in the Commons by the chairman of the new environment, food and rural affairs committee Alistair Carmichael.

Responding to opposition MPs’ criticism, agriculture minister Daniel Zeichner said: “Can I share his very strong points about the importance of the family farm? That’s what we do here. We protect family farms .”

“Almost every visit, and I’ve been visiting all over the country for the last five years, I’ve heard people tell me that they’re worried about people from outside, who come with a lot of money and heads of the people, the local people, buying local land, not because they care about agriculture but to use it to avoid taxes.

Several MPs questioned the government’s view that the new tax would affect one in four farms. Mr Zeichner said however that the £22 billion black hole left in the government budget by the Tories meant “difficult decisions had to be made”.

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