Farmers and Crofters Rally at Holyrood Over Funding and Tax Policies

A demonstration involving hundreds of farmers and crofters took place outside the Scottish Parliament in Edinburgh, where participants expressed worries regarding the agricultural sector’s prospects. They advocate for increased financial provision for agricultural assistance ahead of the Scottish government’s Budget announcement scheduled for next week. Additionally, apprehension has been voiced concerning alterations by the UK government to agricultural relief on inheritance tax. While UK ministers have defended these proposed changes, the Scottish government has declared its support for the industry to be “unequivocal”. In October, UK Chancellor Rachel Reeves declared in her Budget that financial allocations for farm subsidies would cease to be ringfenced for the devolved nations. Instead, these funds would be incorporated into each nation’s block grant via the Barnett formula, thereby enabling governments to allocate them to alternative sectors. A significant number of farmers are apprehensive that these funds will face competition from other pressing needs, including health and education. NFU Scotland, a farming union, seeks an increment of £50m, raising the total budget for farmers to £776m. The union is also pressing the Scottish government to commit to multi-year funding to ensure financial predictability. Under the EU’s Common Agricultural Policy, multi-year agreements offered stability for periods of up to seven years. Following Brexit, the UK government established these budgets over a five-year period. Jonnie Hall, the union’s director of policy, stated that the Scottish government currently possesses complete authority over agricultural funding, and the forthcoming budget will serve as an indicator of its dedication to rural communities. He further remarked: “Our figures show that a modest budget increase in the agricultural portfolio would deliver a strong return on investment, fostering employment and growth in areas with limited economic alternatives while advancing climate and nature goals.” NFU Scotland estimates approximately 67,000 individuals in Scotland are directly employed within agriculture. It also indicates that an additional 360,000 people rely on this sector. During the demonstration, agricultural leaders brought up several concerns, notably the UK government’s revisions to agricultural relief on inheritance tax. Among those troubled by these proposals is Nicola Wordie, a 26-year-old livestock farmer from Aberdeenshire. She aspires to be a third-generation farmer but describes the current period as extremely concerning for her entire family, including her father George. Nicola’s mother, Margo, passed away unexpectedly earlier this year at 59 years old, and Nicola fears that the inheritance tax modifications would necessitate the sale of substantial portions of land for her to assume management of the farm in due course. Nicola asserts that this would render the farm too small for profitable operation, concluding: “It could be the end of this family farm as we know it.” Rural Affairs Secretary Mairi Gougeon stated that the instability confronting farmers is exacerbated by adjustments to inheritance tax relief, and she has urged the UK government to retract its decision. She further commented: “The Scottish government is unequivocal in our support for Scotland’s farmers and crofters. “They play a vital role fuelling our rural communities and making possible our world-class food and drink sectors and the UK government Budget will penalise them by failing to reverse the real terms cuts of previous years and failing to provide the multi-year certainty they require.” Ms Gougeon spoke to the demonstrators, accompanied by delegates from other political factions. She conveyed that farmers are fundamental to rural communities and that her presence at the rally was to listen to their perspectives, but she indicated she could not disclose the implications of next week’s budget for agricultural funding. Russell Findlay, leader of the Scottish Conservatives, asserted that farmers have been unfairly treated for an extended period by a Scottish government that has viewed the agricultural budget as a convenient area for reductions. He stated: “Farmers are already reeling from Labour’s spiteful Family Farm Tax plans.”The last thing they need in next week’s Scottish Budget is for the SNP to let them down again.” The UK government has maintained that only the most affluent farmers would be impacted by the inheritance tax adjustments and that “the vast majority” would experience no repercussions. Scotland’s Finance Secretary Shona Robison is scheduled to present her Budget for 2025/26 at the Scottish Parliament next Wednesday. This follows a challenging fiscal year during which funds were reallocated from nature restoration budgets to finance local authority pay agreements. Additionally, agricultural leaders are advocating for the reinstatement of £46m in previously unassigned funds that were withdrawn from prior budgets.