Farmers Union Calls on Labour Party to Delay Agricultural Inheritance Tax Reforms

January 1, 2025 TruthUSA

Around 13,000 farmers gathered in London in November to voice their opposition to changes in inheritance tax.

The National Farmers’ Union (NFU) has called on the government to halt agricultural inheritance tax reforms to safeguard food security and the farming sector.

The government’s announcement to impose inheritance tax on farms valued over £1 million in the October budget has sparked concerns.

Under the proposed policy, agricultural property relief (APR) will be eliminated, resulting in a 20 percent tax on farms exceeding £1 million in value. APR, established in 1984 by an act of Parliament, aimed to exempt agricultural property and land from inheritance tax.

In his recent New Year message, NFU President Tom Bradshaw expressed dismay over the inheritance tax reforms and their potential negative impact on businesses, families, and rural communities.

Bradshaw urged the government to pause the reforms and find a solution that mitigates the severe consequences of this controversial family farm tax policy.

“More than 265,000 individuals have signed our family farm tax petition to express their discontent and support NFU’s call for a swift reversal,” Bradshaw stated.

Farmers fear that the new tax regime will compel their families to sell inherited land to cover the tax obligation, leading to significant repercussions in countryside communities.

Chancellor Rachel Reeves, defending the policy, suggested that in certain cases, the actual threshold could be around £3 million.

“The Labour government’s decision has caused great distress and disappointment among farmers and the wider rural community,” Bradshaw lamented. “It has jeopardized the ability to pass on farm businesses to the next generation, thereby affecting food-producing enterprises and food security.”

Public Support

An estimated 13,000 individuals participated in a central London rally in November to oppose the government’s intentions. Farmers, political figures, and celebrities united in Parliament Square to demand a reversal of the decision.

Key opposition party members like Conservative Party leader Kemi Badenoch, Reform’s Nigel Farage, and Liberal Democrats’ Sir Ed Davey also joined in solidarity.

The NFU President highlighted the remarkable backing from the public for British farmers, evident in various demonstrations and protests across the country.

Food Security

Bradshaw emphasized the need for stringent food import standards to shield British farmers from unfair competition with products manufactured under conditions prohibited in the UK.

He advocated for legislation promoting the purchase of British food and a planning framework to bolster farm infrastructure.

“These initiatives are crucial in ensuring UK food security and offering British farmers the confidence required to invest in sustainable food production, job creation, and nature-friendly farming practices,” Bradshaw asserted.

A government spokesperson reaffirmed Labour’s support for farmers, citing a significant investment of £5 billion in the farming sector over two years. This allocation is deemed the largest ever for sustainable food production and nature conservation.

The spokesperson also highlighted a 25-year farming roadmap aimed at enhancing the profitability of rural businesses in the foreseeable future.

Regarding agricultural and business property relief reforms, the spokesperson indicated an anticipated impact on around 500 estates annually.

“For these estates, inheritance tax will be charged at half the rate paid by others, with a 10-year interest-free repayment period,” the spokesperson explained. “This equitable approach aims to enhance public services that benefit all citizens.”

PA Media contributed to this report.

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