Southern Farmers Protest Inheritance Tax Changes, Demand Government Action

“They’ve taken food production and food security for granted and think that food just appears out of nowhere.” Farmers throughout southern England are demanding alterations following the Autumn Budget’s declaration that certain agricultural properties would become subject to inheritance tax. Karl Franklin, an Oxfordshire farmer, stated that this announcement had generated “shock, massive worry and stress” among those in the agricultural sector. The government attributed its “difficult decisions” to “a £22bn fiscal hole”. An estimated 10,000 to 40,000 individuals are anticipated to participate in a London protest on Tuesday, marking it as the largest demonstration to date concerning the government’s domestic policy agenda. Prior to this announcement, agricultural producers had been exempt from inheritance tax payments since 1984. The modifications revealed by Chancellor Rachel Reeves indicate that beginning in April 2026, combined business and agricultural assets exceeding £1m in value will incur a 20% tax upon transfer to the subsequent generation. This rate represents half of the typical 40% charge. Various assertions have been made regarding the number of farms that will experience an impact. The highest projection, 70,000, pertains to the maximum potential number of farms that could ever be affected. However, approximately 500 farms are expected to be impacted annually. Mr Franklin, a farmer from Chipping Norton, stated: “British farming is built on family farms and small independent farms.”If they start going… how are we going to be producing food in the future to come?” He characterized the government’s choice as “a real, major red flag”. Numerous farmers nationwide rejected the farming minister’s assertion that “the vast majority will be fine”. “They’ve got their maths wrong, it is going to affect a lot more farmers,” commented George Brown, an agriculturalist in Peasemore, located near Newbury in Berkshire. He operates a small arable farm named Priors Farm and additionally possesses a modest flock of sheep. He believes the updated regulations imply his two young children “wouldn’t be able to afford to run it”. Mr Brown indicated that farmers “will just need to keep the pressure on in the coming months”. Ian Constable, from Street Croft Farm in Herriard, Hampshire, is another farmer participating in the demonstration. He remarked, “Myself and my partner will definitely be going, we will be meeting everybody else to show solidarity.” “Farms generally don’t have a lot of cash in the bank, they’re, as people say, asset rich, but a lot of the time that asset is owned by the bank.” “To pay the 20% tax, land owners would have to sell land.” Mr Constable observed “a slow decline” within the agricultural industry. He further noted, “I was talking to an arable farmer friend of mine and he was saying they haven’t had a profitable year in four years.” Recent analyses have illustrated the effects on farms resulting from a scarcity of laborers. Tristan Hayter and Rowena Jones, members of Puddletown Young Farmers in Dorset, expressed that their prospects in agriculture were “not so certain anymore”. Ms Jones commented, “I don’t think it encourages new generations to come to get involved within the industry.” Mr Hayter conveyed that their communication to the government highlighted “there’s possibly more chance it could affect young people’s [mental] health as well”. Milly Collins, a 21-year-old shepherdess from the Isle of Wight, stated: “We need a change”. “A million to a lot of people does sound like loads but it’s really not when you come down to buildings and land, it doesn’t give you much.” She described being a young farmer as “great” but perceived the decision as “a complete stab in the back”. She further added, “If anything did happen in two years to any of our parents, we will only be 23 ourselves – there’s no way we would have that spare cash.” Chancellor Rachel Reeves and Steve Reed, the Secretary of State for the Environment, Food and Rural Affairs, affirmed that they “recognise the strength of feeling expressed by farming and rural communities in recent weeks”. In a joint declaration, they proceeded: “We are steadfast in our commitment to Britain’s farming industry because food security is national security.” They added: “It’s why we are investing £5bn into farming over the next two years – the largest amount ever directed towards sustainable food production, rural economic growth and nature’s recovery in our country’s history.“ “But with public services crumbling and a £22bn fiscal hole that this government inherited, we have taken difficult decisions.“ “The reforms to Agricultural Property Relief ensure that wealthier estates and the most valuable farms pay their fair share to invest in our schools and health services that farmers and families in rural communities rely on.” For updates, BBC Oxfordshire can be followed on Facebook, X (Twitter), or Instagram. Copyright 2024 BBC. All rights reserved. The BBC bears no responsibility for the content found on external sites. Information regarding their approach to external linking is available.