Farmers Protest Against Inheritance Tax in London
Hundreds of tractors blocked streets in central London on Wednesday, the latest protest by farmers against the government’s decision to end an exemption from inheritance tax for agricultural families.
The "Tractor Tax"
The measure, dubbed the "tractor tax" by critics, was introduced by the government to boost funds to pay for strained public services, but farmers say it will destroy family farms and reduce food production.
Farmers’ Concerns
Farmers have been facing significant challenges in recent years, including the competitive supermarket sector, cheap imports from abroad, and subsidy cuts following Brexit. The passing down of farms through generations was previously tax-free, but in October, the government announced that farmers would be subject to a tax from 2026.
Protests and Demands
Protests in different parts of the country swiftly followed, with the biggest one being in mid-November, where 13,000 people gathered in Westminster, including Britain’s most high-profile farmer Jeremy Clarkson, the former Top Gear presenter whose programme Clarkson’s Farm is one of Amazon’s top UK shows. The protesters are demanding a change in the government’s policy, warning that the inheritance tax will destroy family farms and reduce food production.
Government’s Response
The government has repeatedly said there will be no u-turn on the inheritance tax policy. Environment minister Steve Reed stated that the government is working to help farmers via rural support schemes, saying, "We are focused on supporting our farmers, supporting rural economics growth and boosting Britain’s food security."
New Inheritance Tax Rules
Under the new inheritance tax rules, from 2026, a 20% tax will be paid on the value of a farm above £1 million. Existing personal allowances, which a married couple can combine, takes the threshold for a farm and associated property up to £3 million.
Conclusion
The protests by farmers against the inheritance tax are a testament to the growing concerns about the potential impact on the agricultural industry. As the government remains firm on its policy, it remains to be seen whether the farmers’ demands will be met or if the protests will escalate further.
FAQs
- What is the inheritance tax policy?
The policy was introduced by the government to boost funds to pay for strained public services and applies to farms with a value above £1 million. - What are the new inheritance tax rules?
From 2026, a 20% tax will be paid on the value of a farm above £1 million, with existing personal allowances taking the threshold up to £3 million. - How did farmers respond to the policy?
Farmers have been protesting against the policy, blocking streets in London and other parts of the country, and demanding a change in the government’s policy.