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Farmers made their voices heard in central London on Budget day by driving tractors into the heart of the city, protesting proposed inheritance tax measures targeting farm businesses valued over £1 million. The demonstration caused significant disruption, as more than a dozen tractors were parked outside Parliament early on Wednesday, causing rush-hour traffic to grind to a halt with farmers repeatedly sounding their horns while police monitored the situation.
David Gunn, an arable farmer and agricultural contractor based near Sevenoaks in Kent, expressed his concerns about the impact of the tax: “Inheritance tax is going to cripple the farmers, the small family farmers.” In response, a government spokesperson highlighted ongoing support for the agricultural sector, stating, “We are backing farmers with the largest nature‑friendly budget in history with over £2.7bn a year to grow their businesses.”
The Budget introduced measures allowing spouses to transfer any unused portion of their £1 million inheritance tax allowance to their partners. This change means that if one partner dies having only used part of their allowance, the surviving partner could inherit a sum exceeding £1 million before the tax applies. However, this adjustment has not alleviated the concerns of many farmers who fear the overall tax proposals will still threaten their livelihoods.
Mr. Gunn criticized the government’s handling of the situation, remarking, “There’s all the other taxes they’ve been putting on us, and the prices we get for our produce and what it costs in the shop, we don’t make any money. Then there’s food security, farmers are going out of business.” He called for the government to honour its election pledges, saying, “Sort the pledge out. You said in the manifesto you would look after the farmers, which you totally haven’t, you’ve ruined the countryside.” Among the protesters was 18-year-old Tyler Carter from Peterborough, who carried a sign reading, “Dear London sorry … I’m here to fight for my future!” He voiced his worries about the changes, sharing, “It means my dad will be out of a job, which means I will be out of a job. We have worked hard for what we’ve got and don’t deserve to have it taken off us.”
The Metropolitan Police had issued warnings to those attending the protest against bringing vehicles, including tractors, to the demonstration. While most complied with these conditions, several arrests were made during the event. Reform UK condemned the detentions, offering to cover legal costs for the arrested farmers and calling the actions “outrageous.”
The protest took place amid intense pressure on Chancellor Rachel Reeves to reconsider the new 20% inheritance tax rate introduced on agricultural land and businesses worth more than £1 million. This policy has become a significant point of contention within a sector already challenged by rising costs, volatile markets, and adverse climate conditions. While the National Farmers’ Union welcomed certain Budget revisions, including the transferability of tax allowances between spouses, it emphasized that more substantial measures are necessary to lessen the tax’s impact on farming families.
Despite these changes, the government has frozen the inheritance tax threshold at £1 million—alongside other thresholds—until April 2031, raising concerns that this could gradually bring more farms into the tax net. A spokesperson from HM Treasury highlighted additional government initiatives aimed at supporting agriculture, stating, “We are also delivering on extending the Seasonal Worker Visa Scheme, protecting British produce in trade deals, investing hundreds of millions in grants and biosecurity, and driving fairer supply chains. Our reforms to Agricultural and Business Property Relief will safeguard public services while keeping inheritance tax fair – with three quarters of estates paying nothing, and the rest paying half the usual rate, spread over 10 years interest‑free.
Read the full article from The BBC here: Read More
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