Leading farmers have hinted that more extreme action could be taken if the government does not backtrack on its plan to reduce inheritance tax relief on agricultural properties, as 13,000 descended on Westminster in protest at the move.
Tom Bradshaw, president of the NFU, said the mood in the agricultural community was for a tougher approach with ministers and for more disruptive demonstrations – and said he expects further localised action if the Budget measure goes ahead.
“The ball is in the government’s court. They have to be the ones that now decide how they react to this”, he said as farming leaders met around 150 MPs in Whitehall following the protest to warn the policy will cause food shortages and the breakup of family farms.
But ministers have doubled down on the plan, with environment secretary Steve Reed on Tuesday rejecting claims that many will be affected and saying many protesters are wrong about its implications.
TV personality and landowner Jeremy Clarkson addressed demonstrators, calling the policy a “hammer blow to the back of the head” for agriculture.
It came as:
First unveiled in chancellor Rachel Reeves’s Budget, the plans to end inheritance tax relief on farms worth more than £1m have sparked fury among rural communities.
Oliver Atkinson, a farmer from Hampshire who took part in the protest, begged the government to “accept this was rushed through, wasn’t thought out, and was a mistake.”
Tom Morphew, from Full Circle Farms in Sussex, told The Independent he has come to London for the protest “to stand up for the next generation of farmers”, adding: “If this carries on there won’t be a next generation of farmers”.
“It’s not just about the tax, it’s about food”, he warned. “That’s what all these people here do, produce food. If we can’t do it, we’re going to rely on food from Peru, Spain or Portugal – and when they have a flood or a war, we won’t get the food. It will go to their people first and we’ll be stuffed and food prices will soar”.
Sir Keir, meanwhile, denied that the Labour budget is waging a class war with the changes to inheritance tax, and the plan to impose VAT on private schools.
“No, absolutely not. It isn’t at all what we’re doing”, the prime minister said from the G20 summit in Brazil, insisting the “vast majority will be unaffected.”
While the protest was largely peaceful, footage emerged of tractors ploughing into a no entry sign in Westminster – an incident the Metropolitan Police said was “not acceptable”.
In a joint statement with Mr Reed on Monday, Ms Reeves defended the policy, insisting the government had taken difficult decisions to fix gaps in the public finances.
“We recognise the strength of feeling expressed by farming and rural communities in recent weeks,” the statement said. “We are steadfast in our commitment to Britain’s farming industry because food security is national security
“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.”
Mr Bradshaw, who met Mr Reed the night before the protest, suggested there is division within the cabinet, claiming Ms Reeves had entirely “refused to engage” with farmers and that it was clear Defra was “not consulted” prior to the Budget.
Asked by The Independent whether he believes there is a disconnect between the Defra and the Treasury, he said: “The very fact that we’re even arguing about the figures suggests that the foundations of this policy are very weak.
“We know that Defra figures show something very different to Treasury figures. Treasury are obviously working off historic claims.”
“There’s probably some very interesting conversations going on behind closed doors that we’re not privy to”, he added.
Treasury data shows that around three-quarters of farmers will pay nothing in inheritance tax as a result of the controversial changes.
But farmers have challenged the figures, pointing instead to data from Defra, which suggests 66 per cent of farm businesses are worth more than the £1m threshold at which inheritance tax will now need to be paid.