Farm Inheritance Tax: Protests Erupt at the NFU Conference

Introduction

The National Farmers’ Union (NFU) conference was disrupted by farmers protesting against the government’s proposed agricultural inheritance tax changes. With Environment Secretary Steve Reed delivering a speech outlining farming reforms, protesters made their presence felt, voicing their dissatisfaction.

Inheritance Tax Changes on the Horizon

The proposed changes to inheritance tax, set to take effect from April 2026, have stirred considerable unrest. Under these changes, inherited agricultural assets valued at over £1 million, previously exempt, will now face a 20% tax rate, half the standard inheritance tax rate.

• Impact on the wealthiest 500 farms yearly, according to the government.
• NFU’s estimates point to up to 70,000 farms being affected.

Steve Reed acknowledged the sentiment in the room, stating his inability to offer the “answers many of you want on inheritance tax.” NFU president Tom Bradshaw criticized these changes as “morally wrong and economically flawed,” urging an urgent rectification.

Protests at the Conference

The farmers’ protest was not limited to banners and placards; tractors blared horns outside the conference venue, further amplifying their demands. One banner in the conference hall provocatively asked, ‘How high up your “pecking order” is eating Steve?’

The protest highlighted the perceived breach of promises made by the government, with Bradshaw emphasizing the psychological toll on farmers and calling for swift policy changes.

The Financial Crunch

Many farmers identify as asset-rich but cash-poor. The new tax changes could force them to sell valuable assets to meet tax obligations, threatening their livelihoods.

• Example of the Towler and Church family facing potential £400,000 tax debt.
• Farm viability at stake, with potential for lands to be sold off.

Mr. Church expressed concerns about the viability of farming businesses, fearing that additional debt due to death-related tax burdens could render their operations unsustainable.

Government Commitments Amidst Unrest

Despite the tumult, Reed’s speech included a focus on the strategic roadmap for the farming industry:

• Plans for a 25-year farming roadmap and food strategy.
• Efforts aimed at improving resilience against challenges like flooding, drought, and animal disease.

Additional measures announced included extending the seasonal worker visa scheme, supporting precision breeding, and introducing requirements for high-quality food products in government contracts.

Engagements with Families Affected

Earlier in the day, the Towler and Church family, alongside their young son, visited the Treasury, presenting pre-loved farming toys. This symbolic gesture highlighted the emotional and economic strain faced by farming families due to the proposed inheritance tax changes.

Political Reactions

As emotions ran high during the conference, Shadow Environment Secretary Victoria Atkins pledged that the Conservatives would overturn the inheritance tax for farmers if given a chance.

During a Q&A session, Steve Reed was confronted with the harsh realities faced by older farmers who feared the changes would pressure their families into onerous financial conditions.

Conclusion

The protest at the NFU conference underscores the critical concerns within the farming community regarding the impending inheritance tax changes. As discussions continue, the government faces mounting pressure to address these concerns and find a feasible compromise.

Farmers’ plea for policy reconsideration reflects not just economic anxiety but a call for sustainable and supportive measures that recognize the integral role of farming in the nation’s economy.

Source: https://www.bbc.com/news/articles/c2ljdvqegkeo