Farmers to take over Westminster in demostrations against 'unacceptable' inheritance tax reforms

Under the proposals inheritance tax will be charged at 20 per cent on farms worth more than £1 million, in a major reform of agricultural property relief (APR). Previously farmers were exempt from paying inheritance tax.

Rachel Reeves has said that in some cases the threshold could in practice be about £3 million, if couples combine their own personal inheritance tax allowances when passing on their land.

Thousands more farmers are expected to join a separate rally in Whitehall against last month’s Budget, which also sped up the phase out of EU-era subsidies as funding is switched to nature-friendly farming schemes.

At the same time, farmers across the country have gone on strike this week and are withholding produce. One organiser told The Yorkshire Post that there would be “food shortages on supermarket shelves”.

Organisers and farming leaders say they have no concerns over potential trouble despite speculation over far right protesters attending.

While a procession to Parliament Square will be spearheaded by children on toy tractors, organisers have told those coming that they should not bring their farm machinery.

Ahead of the protests, Environment Secretary Steve Reed – who was met with NFU president Tom Bradshaw last night – and Ms Reeves defended the changes, saying they will   “ensure that wealthier estates and the most valuable farms pay their fair share to invest in our schools and health services”.

In a combined statement released last night, the pair said: “Farmers are the backbone of Britain, and we recognise the strength of feeling expressed by farming and rural communities in recent weeks. 

“We are steadfast in our commitment to Britain’s farming industry because food security is national security.  

“It's why we are investing £5 billion 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.”

They added: “The reforms to APR ensure that wealthier estates and the most valuable farms pay their fair share to invest in our schools and health services that farmers and families in rural communities rely on."

The government continues to claim that only 500 claims a year are expected to be affected by the changes, despite both the NFU and the CLA estimating around two-thirds of farmers will be hit.

Speaking to reporters on his way to the G20 summit in Brazil, Sir Keir Starmer said it was important to support farmers, pointing to £5 billion over two years for farming in England, and said he was “absolutely confident the vast majority of farms and farmers will not be affected” by the tax changes.

Olly Harrison, one of the rally’s organisers, said of the Government: “They don’t know their own figures, they have not done any homework whatsoever.

“It’s embarrassing for them, how little research they’ve done on this before they brought it in.”

He warned the move could destroy UK food production, with family businesses in food processing and retailing, as well as farming, at risk from the changes.”