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Friday, November 15, 2024
Friday November 15, 2024
Friday November 15, 2024

Farmers to protest in London over Labour’s inheritance tax changes

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National Farmers’ Union mobilises hundreds against planned tax reforms threatening family businesses

In a dramatic response to recent government proposals, hundreds of farmers are set to converge on central London for a major demonstration, fuelled by outrage over what they describe as a “death tax” on their land. The protest, organised by the National Farmers’ Union (NFU), is scheduled for November 19 outside Parliament in Westminster, where farmers will express their fury over Labour’s decision to revoke exemptions on inheritance tax for farmland.

The planned changes, as outlined in recent Budget documents, will affect farmers starting April 2026. Under the new rules, farmers will be able to claim 100% relief from tax on the first £1 million of combined agricultural and business assets, but this will decrease to 50% for amounts exceeding this threshold. The Labour Party argues that “restricting the generosity” of these reliefs is necessary to make death taxes fairer, a move that has sparked widespread anger among those in the agricultural sector.

Tom Bradshaw, President of the NFU, highlighted the profound impact of these proposed reforms on farming communities. He expressed concerns that the changes could threaten the viability of family-run farms, disrupt food security, and hinder efforts toward environmental sustainability. “The tension, the anger, the frustration among farming communities is palpable,” he said, underscoring the urgent need for the government to reconsider its stance.

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The potential impact of these reforms has resonated beyond the farming community, with notable figures like TV property expert Kirstie Allsopp and television personality Jeremy Clarkson publicly voicing their concerns. The NFU’s call to action has prompted farmers to consider bringing their tractors and other heavy machinery to the demonstration, a move that could significantly disrupt traffic in the capital.

In defence of the new policies, Environment Secretary Steve Reed has insisted that the plans represent a “fair and balanced approach” aimed at protecting family farms while addressing the need for improvements in public services. Writing in The Daily Telegraph, Reed acknowledged farmers’ anxieties but argued that rural communities require better healthcare, affordable housing, and improved public transport—goals that can only be achieved by making the tax system fairer.

As the protest date approaches, tensions continue to mount, with farmers determined to make their voices heard against what they view as an unjust attack on their livelihoods. The NFU’s mobilization for the demonstration highlights the growing discontent within the agricultural sector and the potential political ramifications for Labour as it grapples with the fallout from its fiscal policies.

The upcoming protest in London is set to be a significant event, signalling the deep-rooted frustrations among farmers and their resolve to fight against what they perceive as harmful government measures. As the date draws near, the spotlight will be on both the farmers and Labour’s response to their escalating concerns.

THE TELEGRAPH

Elon Musk has voiced strong opposition to Labour leader Sir Keir Starmer’s recent inheritance tax changes, which he described as a “tax raid” on farmers. The tech billionaire’s comments came in response to growing concerns among rural constituents about the government’s plans to impose inheritance tax on agricultural land.

Under the new policy introduced by Chancellor Rachel Reeves, only assets up to £1 million can be passed on tax-free from April 2026, with those exceeding this threshold facing a 20% tax charge. This move has been labelled the “tractor tax” by critics, who argue it could threaten Britain’s food security by financially burdening family farms.

Labour MPs are receiving an influx of complaints from farming communities, prompting some to urge the Treasury to raise the tax threshold. The National Farmers’ Union (NFU) has begun a campaign to pressure the government, with hundreds of farmers planning to meet with Labour MPs in London. Critics, including former shadow chancellor Ed Balls, have questioned whether the Treasury fully considered the implications of this tax change.

Musk’s response on social media emphasised the vital role farmers play in food production, stating, “We should leave the farmers alone. We [owe] farmers immense gratitude for making the food on our tables!” His remarks highlight the mounting political pressure on Labour from rural constituencies as they navigate the fiscal landscape.

THE GUARDIAN

Labour’s first budget in 14 years has left many farmers, including Leicestershire arable farmer Will Oliver, in disbelief over the announced inheritance tax changes. Starting April 2026, farms and business properties will be subject to a 20% inheritance tax on values exceeding £1 million. This move is projected to raise £1.8 billion by 2030, intended for public service improvements.

The decision has sparked outrage within the farming community, with the National Farmers’ Union (NFU) accusing Labour of breaking its promise not to alter agricultural property relief. Victoria Vyvyan, president of the Country Land and Business Association, labelled the tax a “betrayal” that could hinder investment in agricultural advancements. Celebrities like Jeremy Clarkson also voiced their concerns, urging farmers to endure for five years until a potential government change.

However, experts argue that the impact may be overstated, as only the wealthiest estate owners will likely be affected. The tax changes are not expected to burden the majority of family farms, with many still remaining exempt from inheritance tax. Clarkson, who previously emphasized avoiding such taxes through property purchases, could find his estate facing increased tax liabilities under the new rules, highlighting the potential contradictions within the criticism from high-profile figures.

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