Farmers vow to face agency towards Rachel Reeves’s ‘unfair’ tax raid | Politics | News | EUROtoday

Farmers have vowed to face agency on their calls for for Rachel Reeves to reverse her “unfair and unjust” inheritance tax raid on the struggling sector.

Hundreds of meals growers staged go-slow protests throughout the nation on Monday forward of the Chancellor’s Budget on Wednesday. Thousands extra will descend on London with their tractors hours earlier than Ms Reeves takes to the Commons to unleash her tax-raising statements on the nation.

Newbury farmer Dan Willis, who’s among the many organisers of Wednesday’s motion, stated: “We are all representing the working people of Britain to keep up the pressure on this present government to withdraw the proposed inheritance tax (IHT) changes. We have not gone away and we will not back down. This unfair, unjust family farming tax needs to be reversed.”

The go-slow protest on Monday was the third demonstration of its sort following comparable rallies in February and December following IHT modifications unveiled by Ms Reeves throughout her Budget speech final October.

The Chancellor introduced that from April 2026, mixed agricultural and enterprise property belongings as much as £1million will nonetheless obtain 100% aid however something above that will probably be taxed at an efficient fee of 20%. Asset wealthy farmers who’re money poor concern they should dump their land – making it unviable for meals manufacturing – to foot the tax invoice.

The Daily Express has campaigned for the Government to U-turn on its IHT raid by way of the Save Britain’s Family Farms campaign.

Mo Metcalf-Fisher, of the Countryside Alliance, stated: “The household farm tax has brought on an enormous quantity of tension throughout the countryside and for the reason that finances final 12 months, farmers, supported by the general public, have taken half in quite a few demonstrations to precise their harm and upset.

“Given the strength of feeling within the farming sector, it is very unlikely these demonstrations will diminish. It is clear to almost everybody that the Government need to get back around the table, with the farming sector, to work out a way forward that won’t see thousands of farming families thrown under the bus. It is vital the Government urgently resets its relationship with farmers and the wider countryside”.

National Farmers Union president Tom Bradshaw warned that family farms across the UK are halting investment or anticipating having to sell parts or all of their farm to pay an IHT bill.

Some horticultural businesses have also seen employment costs increase by hundreds of thousands of pounds after Ms Reeves hiked employer national insurance contributions in last year’s budget.

Gavin Lane, president of the Country Land and Business Association, said: “The last Budget shook the countryside, and the next one could hit even harder. The signals coming out of Westminster are not encouraging.

“One suggestion is capping lifetime gifting, which many families depend on to pass on their business without losing too much of it to tax. Another is extending national insurance to rental income, which would erode one of the few steady revenue streams rural businesses have left. There is also talk of changes to capital gains tax, which would fall on the very people trying to build and invest.

“Taken together, these taxes could force rural businesses to pull back rather than grow: cutting jobs, stalling investment, and reducing the tax the Treasury aims to raise.

“After a year of uncertainty, many in the countryside feel their concerns have been set aside. Rural Britain needs a clear sign that growth matters here as much as anywhere else. Give these businesses the backing and ambition shown in other parts of the economy and they will repay it many times over.”

The Tories have urged the Government to take fast motion to help farmers, meals producers, fishermen because the UK faces a “food and farming” emergency.

Shadow Environment Secretary Victoria Atkins wrote to Ms Reynolds final week with 5 measures that the Government can implement instantly to alleviate vital cashflow pressures.

This contains scrapping modifications to IHT and urgently opening purposes for the brand new Sustainable Farming Incentive scheme.

Environment Secretary Emma Reynolds insisted final week she was trying to “focus on the future” of the sector.

Ms Reynolds introduced some new insurance policies, together with a “rural taskforce” publishing 50 actions to help rural companies early subsequent 12 months, measures to make it simpler to construct reservoirs on farms and plans for a rural and wildlife crime technique.

She stated: “This Government sees the rural economy as absolutely fundamental to our growth mission.

“When rural economies succeed, the whole country succeeds.”

Ms Reynolds additionally spoke about an upcoming evaluate into farming profitability, growing a 25-year farming highway map, a land use framework, the environmental enchancment plan and the redesigned sustainable farming incentive (SFI) subsidy scheme – all as a consequence of be unveiled within the coming months.

“Let me be clear about what we’re building together, a rural economy that thrives with sustainable, profitable farm businesses that can plan for the long term,” she stated.

A spokesman from the Treasury stated: “We’re backing British farms with £1million annual investment allowance for plant and machinery investments, billions for sustainable food, and action to cut EU export costs.

“Right now, 40% of agricultural property aid, price £219million, goes to simply 117 estates. Our reforms will channel that funding into very important public providers.”