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Evening Standard
Evening Standard
National
Lydia Chantler-Hicks and Daniel Keane

Farmers protest in London over inheritance tax shake-up but Rachel Reeves holds firm

Tens of thousands of farmers gathered at Whitehall in bitterly cold conditions on Tuesday for a major protest against "cruel" changes to inheritance tax - but ministers indicated they would hold firm.

On the coldest day of the year - which saw snow fall in Westminster - more than 20,000 people from all corners of the nation gathered to urge the Government to scrap the so-called "tractor tax".

Jeremy Clarkson, Conservative leader Kemi Badenoch, and Lib Dem leader Sir Ed Davey were among those who addressed the shivering crowd, along with farmers who spoke passionately about the fears for their livelihoods.

A massive crowd greeted the former Top Gear star-turned-farmer with roaring cheers as he took the stage - having battled back pain to make the protest.

Jeremy Clarkson at the protest (Aaron Chown/PA Wire)

He said while people across the country "took a bit of a kick on the shin" following the recent Budget, farmers "got a knee in the nuts and a hammer blow to the back of the head."

"For the sake of everybody here and all the farmers stuck at home, paralysed by a fog of despair over what's been foisted on them, I beg of the government to be big," he said in his speech.

"To accept that this was rushed though, it wasn't thought out, and it was a mistake. That's the big thing to do. Admit it, and back down."

Labour have said the changes to inheritance tax on farming land and equipment will impact fewer than 400 farms a year but that figure is a subject of fierce dispute.

Environment Secretary Steve Reed said many farmers protesting over changes to inheritance tax were “wrong” about the policy, in remarks likely to anger some demonstrators.

Appearing before MPs on the Environment, Food and Rural Affairs (Efra) committee on Tuesday, Mr Reed acknowledged the changes would be “unsettling” and said he was “listening” to concerns, but that most farmers would not face a hike.

The Cabinet minister insisted that only a few hundred of the wealthiest estates would be impacted, rather than the tens of thousands claimed by opponents.

“The Government’s been very clear: about 500 farms will be affected and the vast majority of farms will pay nothing more under the new scheme,” he said.

Claire Wise told crowds that farmers are asset rich but cash poor (Lydia Chantler-Hicks/Evening Standard)

At the rally, Ms Badenoch and Sir Ed also gave speeches strongly criticising the Labour government.

The changes, announced by Ms Reeves in last month's Budget, limit the existing 100 per cent relief for farms to only the first £1 million of combined agricultural and business property.

The National Farmers' Union (NFU) says farms producing the country’s food will need to be broken up and sold as a result of the policy.

Hundreds of NFU members met at Westminster earlier on Tuesday to lobby MPs against the shake-up.

Addressing the Whitehall protest on Tuesday afternoon, Ms Badenoch slammed the changes as "cruel and wrong", warning they will "destroy farming as we know it”.

She vowed the Conservatives would reverse it "at the earliest opportunity", telling crowds: "I want you to know that we have your backs."

Sir Ed also blasted the tax as "not only cruel but stupid", telling farmers: "You're feeding our families and you're struggling to feed your own, and that is just so wrong."

Reform UK leader Nigel Farage was also at Tuesday's protest.

Labour peer Baroness Ann Mallalieu, who has spoken against the proposal in the House of Lords, told protesters she feared of the political ramifications of ostracising farmers and rural voters.

"As things stand no political party in this country can win a working majority without rural seats," she said in a speech.

"This is not just a numerical miscalculation, but a serious political one too."

The thousands gathered also heard from working farmers including Claire Wise, a fifth-generation farmer from Durham.

"Last year I struggled to buy school shoes for our children after harvest, because farmers are cash rich but asset poor," the mother-of-three said in her impassioned speech.

"For five generations, for 139 years, for 50,375 days, through two world wars, through family tragedy, through a Covid epidemic, my family turned up to produce food every single day.

"You destroy me and mine and you rip the heart out of the countryside, and push food prices up," she said, growing emotional.

"Buckle up, Starmer, because you're not gonna win this fight," she concluded to a roar of cheers.

Signs reading 'Keir Starver', 'no farmers, no future' and 'don't bite the hand that feeds you' were held aloft above a sea of flat caps, tweed and waxed jackets that filled Whitehall, tailing back to Parliament Square.

As the talks ended, groups began chanting "Starmer is a traitor" and "no farmers, no food".

Farmers and their family members of all ages travelled to London for the protest - from elderly men with walking sticks to children as young as nine weeks old, representing the next generation of farmers - who it is feared will suffer the most as a result of the tax changes.

Kieron Goodall-Lomax, who travelled from Derbyshire with his partner Scarlett and their six-year-old son Jonty told The Standard: "It's a government which doesn't understand the countryside and is determined to rob the future generations of an opportunity, and it's about time they listened.

"He said the tax changes will "completely break up family farms and really put a lot of pressure on an industry that's already under facing quite a lot of difficulties".

Jack Greenaway, a third-generation dairy farmer from Devon, told The Standard: "I think Labour's new policy is going to wipe out a large percentage of the food in England.

"Farmers aren't going to be able to afford to pass on their farms. It's generations of knowledge passed down between each other...this is our homes, I've lived there my entire life, so has my father, my grandfather. We're not going to have a chance to carry on farming.

"It's going to be devastating."

He added that he fears the move will see food prices "rocketing up" in England.

Downing Street defended the tax changes on Tuesday.

A spokesperson said: “Farmers are the stewards of our countryside and we do not underestimate their important contribution to the economy and also our rural economy."

“The Prime Minister has spoken about his personal commitment to farmers, evident from the increased £5 billion support we’ve committed over two years in the Budget.

“When it comes to the decisions that we’ve taken, we’ve not taken these lightly, but the Government inherited a £22 billion black hole in the public finances and we had to take difficult decisions to rebalance the public finances and also ensure we’re supporting the public services that everyone relies on, farmers and families in rural communities included, she said.

“As to the changes, we maintain that they are balanced and proportionate and that only around 500 claims a year are expected to be affected.”

She said this analysis was based on information from HMRC and “the actual claims for agricultural property relief”.

“We would urge caution around calculations that are done based on the value of assets alone. Other factors contribute to inheritance tax... that’s why our calculations are based on actual claims that have been made.

“We don’t underestimate the concerns and the strength of feeling, and we want to continue to have a dialogue with farmers and communicate how this works and listen to any concerns.”

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