Hundreds of tractors blocked streets in central London on Wednesday as farmers staged a protest against the government's decision to end an exemption from inheritance tax for agricultural families. The controversial measure, known as the 'tractor tax' among critics, was implemented by the government to generate additional funds for public services. However, farmers argue that it will have detrimental effects on family farms and food production.
On Wednesday, farmers strategically positioned their tractors near the Houses of Parliament in a bid to urge the government to reconsider its stance on the tax policy. The atmosphere was charged with emotion as protesters displayed signs bearing messages like 'No Farmers, No Food, No Future' while voicing their concerns about the future of agriculture in the country.
Farmers have been grappling with financial challenges due to factors such as stiff competition from supermarkets, influx of cheap imports, and subsidy reductions post-Brexit. The tax change, set to take effect in 2026, will mark an end to the long-standing practice of tax-free farm inheritance, further exacerbating the financial strain on farming families.
The discontent among farmers culminated in a massive protest in mid-November, drawing a crowd of 13,000 individuals to Westminster. Notable figures like Jeremy Clarkson, renowned for his show 'Clarkson's Farm,' joined the demonstration to show solidarity with the farming community.
Despite mounting pressure, the government has remained steadfast in its decision regarding the inheritance tax policy. Environment minister Steve Reed emphasized the government's commitment to supporting farmers through rural assistance programs aimed at fostering economic growth in rural areas and enhancing food security across the nation.
Under the revised tax regulations, farms valued above 1 million pounds will be subject to a 20% tax starting in 2026. However, married couples can combine personal allowances, extending the threshold for farm inheritance to 3 million pounds.
