Farmers from across the UK are gathering in Westminster on Wednesday to protest against Labour's proposed changes to inheritance tax for agricultural businesses.
Thousands of farmers are taking to the streets, after about 13,000 people demonstrated against the measures at a previous protest in November.
Political figures such as Sir Ed Davey, Nigel Farage and Kemi Badenoch — and TV personality Jeremy Clarkson — have backed the demonstration.
Tractors started lining up for the protest, which includes speeches and a drive through the heart of London, on Wednesday morning.
The demonstration coincides with Sir Keir Starmer’s participation in the weekly Prime Minister’s Questions.
Additionally, the protest comes on the same day as the release of a Government study on food security in the UK, which may influence the ongoing debate.
Representatives from the farming community and financial experts will address the Environment, Food, and Rural Affairs Committee about the potential impacts of the inheritance tax changes on the sector.
Earlier this week, the Department for Environment, Food & Rural Affairs (Defra) announced an investment of £343 million in the rural economy. More than 31,000 farmers have received payments for adopting environmentally beneficial practices.
Defra also unveiled new details about its environmental land management programs, which compensate farmers for “public goods” such as habitat development, nature restoration, and the maintenance of healthy soil, rivers, and hedgerows.
Here’s what you need to know about why farmers are protesting.
Why are the farmers protesting?
The autumn budget delivered by Chancellor Rachel Reeves extends inheritance tax (IHT) to agricultural land, prompting criticism from farmers. It also freezes the IHT thresholds for an additional two years, from 2028 to 2030.
Presently, the first £325,000 of an estate is exempt from IHT, with anything above that taxed at 40 per cent. However, various allowances mean the threshold for most people is considerably higher. For agricultural land, the rate will be set at 20 per cent, with a 50 per cent relief available.
Farmers argue that they bear the brunt of a system that the wealthiest use to avoid paying IHT altogether.
The extension of IHT to farms worth over £1m (although most estates valued under £3m will not pay IHT due to allowances) has already led to protests outside the Welsh Labour Conference. These have been further exacerbated by a lack of clarity surrounding the Treasury’s figures supporting the change.
In response to the unrest, Transport Secretary Louise Haigh recently stated that food shortages would be addressed if farmers followed through on their threat to strike over the proposed IHT plans.
Clarkson said in November that the Government was “ethnically cleansing” the British countryside to create “immigrant towns” on farms.
The star of the Amazon Prime series Clarkson’s Farm, 64, criticised the inheritance tax extension in the Sun: “I’m becoming more and more convinced that Starmer and Reeves have a sinister plan,” he said. “They want to carpet bomb our farmland with new towns for immigrants and net zero wind farms.
“But before they can do that, they have to ethnically cleanse the countryside of farmers. That’s why they had a budget which makes farming nigh-on impossible.”
What has the Government said?
When asked recently about the possibility of farmers restricting food supplies or becoming more militant, a spokesperson for Sir Keir responded that his support for farmers remained “steadfast”.
Environment Secretary Steve Reed reaffirmed the Government’s position: “We have been very clear that we are not changing course on this policy. Tough decisions were necessary at the Budget and spending review, and those decisions stand. However, our commitment to farmers is unwavering. That’s why we’ve allocated £5 billion to the farming budget over two years, including more funding than ever before for sustainable food production.”
Despite concerns about potential food shortages, the Government has downplayed these fears.
Agriculture Minister Daniel Zeichner has urged people to remain calm about the tax changes. He also assured that “the majority of those claiming relief will not be impacted by these changes.”
In an interview with BBC Politics East, Mr Zeichner added: “I encourage people to carefully review the details, as they will find that the vast majority will not be affected. The Treasury’s figures are clear: under 500 farms a year are likely to be impacted.
“I would also advise people to seek advice, as everyone’s situation is different, and many will find that they will not be caught by these changes.”
