Thousands of British farmers are protesting against ‘tractor tax’ on inheritances

Thousands of British farmers are protesting against ‘tractor tax’ on inheritances

Thousands of farmers protested outside the British Parliament and some drove tractors through central London on Tuesday (19 November) to demand the abolition of an inheritance tax they say will destroy family farms and threaten food production.

The measure, dubbed the tractor tax by critics and unveiled last month in the new government’s budget to raise money, has sparked angry reactions from farmers who say the ruling Labor Party does not understand rural communities.

The demonstrators held signs reading ‘no farmers, no food, no future’ and ‘Starmer the farmer harmer’, referring to Prime Minister Keir Starmer. Some children joined the protest and rode toy tractors close to the Big Ben clock tower.

Farmer Emma Robinson, 44, said she was “absolutely furious” and would take part in measures to disrupt food supplies if necessary – echoing other farmers’ threats of tougher action if the government did not intervene.

“It was my baton and I wanted to pass it on to my children,” says Robinson, who says her farm in northwest England has been in her family for 500 years. “It is being taken out of my hands by someone who has literally been in parliament for days.”

Under Treasury Secretary Rachel Reeves’ policy, people who inherit a farm worth more than $1.3 million would have to pay a 20 percent inheritance tax starting in 2026. Passing down farms from generation to generation used to be tax-free.

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Farmers say that while their land and machinery have a high value, the farms themselves have low profit margins, meaning their children would have to sell land to cover the tax bill.

The government has acknowledged the strength of the sentiment, but said the reforms would only target the wealthier estates and the most valuable farms, while helping to fund public services on which farming communities depend.

It said the tax change would affect around 500 farms a year, with the tax rate for those paying being half the usual rate of 40 percent and payable in installments over ten years.

Jeremy Clarkson, the former Top Gear presenter, was among the protesters. He had previously said that avoiding inheritance tax was a crucial factor in his decision to buy a farm in the Cotswolds in southern England.

The response is just part of wider opposition to the Labor government’s first budget since winning the July election, with businesses warning Reeves’ other tax-raising measures will fuel inflation.

Farmers say they are already suffering from unfair competition as cheaper imported products do not have to meet the same environmental and welfare standards, while their incomes are also under pressure from supermarkets and hit by climate change.

Justin Trott, a farmer from Somerset, south-west England, said he was angry about what the tax changes meant for his family’s future as he pointed to his two-year-old son.

“It’s a complete attack on rural culture,” he said. REUTERS

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