Farmers ‘betrayed’ by ministers, says NFU as protest reaches Westminster

The leader of the National Farmers' Union (NFU) has labeled the government's recent budget adjustments to inheritance tax for farmland as an astonishing "betrayal." He made this statement while speaking to the hundreds of farmers who had come to London to advocate for their local Members of Parliament.

Addressing around 600 farmers at Church House in Westminster, Tom Bradshaw referred to the government's actions as a "betrayal," especially since the industry had been assured that taxes like agricultural property relief (APR) would remain unchanged.

"I can't recall a time when the industry was this frustrated, this let down, and this disturbed," Bradshaw remarked, labeling the actions as a "stunning policy based on faulty information, implemented without any input from those who truly comprehend the situation."

Clearly moved while discussing the "human consequences of this policy," Bradshaw was met with applause from farmers as he took a moment to gather his thoughts during his speech.

He cautioned that the government's actions, including adjustments to national insurance payments, alongside a competitive retail landscape, would lead to rising food prices. He referred to this situation as a "budget that fuels inflation in food production."

Bradshaw addressed farmers while thousands of food producers gathered near Downing Street, accompanied by tractors, for a different rally.

In the past, farming enterprises enjoyed complete exemption from inheritance tax on agricultural and business property. However, there has been a change: farms valued at over £1 million will now face this tax. The effective rate on assets exceeding that amount is set at 20%, which is lower than the usual 40% rate for inheritance tax.

Officials suggest that the real limit for triggering inheritance tax might reach as high as £3 million when considering the exemptions available for each partner in a couple and for agricultural property.

The Treasury reported that in the 2021-22 period, 27% of estates applying for Agricultural Property Relief (APR) exceeded the £1 million limit. This indicates that almost 75% of farms would not be subject to these charges.

The NFU has dismissed the government's assertion that most farms will remain unaffected by the changes. Instead, they argue that these changes will impact around 75% of what they refer to as "commercial farm businesses."

A gathering of farmers from Wales and Wiltshire who participated in the NFU lobby expressed their concerns that all of their farms would be subject to inheritance tax as a result of the changes outlined in the budget.

Sarah Godwin, a dairy and egg farmer based in Wiltshire, expressed her concern about the recent changes in inheritance tax. She mentioned that her 78-year-old in-laws remain actively engaged in the family business, which has been passed down for a hundred years, and are feeling quite distressed about the situation.

Philip Greenhill, a farmer raising cattle and growing crops in North Wiltshire, stated that there is "no connection" between how much money a farm makes and the value of its assets.

"You might have assets worth £5 million, but if your annual profit is only £50,000, it all depends on how you manage your farming activities. In that scenario, you could face around £600,000 in inheritance tax, considering your £50,000 income," he explained.

Sue Hosegood, a dairy farmer from Devon, and her husband William held up a sign that said “farmer harmer Starmer.” They expressed their concerns about the future of their three sons, who are part of their farming operation. "There’s no future for us if we have to pay taxes with each generation,” William explained.

The NFU announced that it has received widespread backing from the public for its opposition to the tax reforms, claiming that over 200,000 individuals have supported its campaign against these changes.

Bradshaw urged officials to come back to discussions and find a way to address the issue of affluent landowners purchasing property in order to evade inheritance tax.

Jeremy Clarkson, the presenter of Clarkson’s Farm, is set to give a speech at the rally on Tuesday. In an interview with the Times back in 2021, Clarkson mentioned that steering clear of inheritance tax played a key role in his choice to purchase his farm in the Cotswolds.

On Monday night, Bradshaw shared with Newsnight that Clarkson's presence at the protest was likely "not beneficial." The former Top Gear host has become a symbol of affluent individuals who, despite lacking a farming background, have purchased land as a means to evade taxes – the very individuals that the new regulations aim to target.

A representative from No 10 announced on Tuesday that the government believes the changes revealed in the budget are fair and reasonable, and only about 500 claims per year are anticipated to be impacted.

She emphasized, "We recognize the importance of these concerns and the strong emotions involved. It's essential for us to keep the conversation going with farmers, explain how everything operates, and be open to hearing their worries."