Thousands of farmers descended on London to protest against plans to impose inheritance tax on farms, which campaigners have branded “Stalinist.”
Speeches were held outside of Downing Street and a procession of tractors moved through Westminster, passing by the Houses of Parliament.
One farmer, 50-year-old Will Elliott, drove his tractor for three hours from his farm near Grafham in Surrey.
Elliott said: “The industry is already down on its knees and this is just another kick in the teeth.
“Obviously, the idea is that we want to pass it down to the next generation, but farmers are asset-rich, cash poor, we’re not going to have the money to pay the inheritance tax.”
‘Stalinist’
The protest was organised by Kent Fairness for Farmers and Save British Farming.Save British Farming’s founder, Liz Webster, described the Labour government’s inheritance tax plans as “Stalinist,” in apparent reference to former USSR leader Josef Stalin’s policy of taking over the land of prosperous farmers, referred to as “kulaks.”
Webster said ahead of the march on Tuesday: “This anti-farming Stalinist offensive from the Labour government presents a real danger to us all—we rely on food to survive.
“Losing the ability to feed ourselves means a total loss of control, we learnt hard lessons in the last two world wars about the fact that food security is national security.”
Not Realistic
The government had said the tax raid was needed to fill the “£22 billion black hole“ it says was left in the public finances by the previous Conservative government.It has said the tax would only affect a small number of wealthy landowners who are not farmers but have been using Agricultural Property Relief to avoid paying inheritance tax.
However, experts have said that this will only have a small impact on those trying to avoid paying taxes and that it will ultimately hurt family farms.
The protest coincided with farming, land, and tax specialists giving evidence to the Environment Committee on the impact of the policy.
Arun Advani, director of the think tank CenTax, told MPs it is likely the inheritance tax changes will only “slightly” slow land price inflation and will not deter wealthier people from purchasing agricultural land for tax purposes.
Jeremy Moody, secretary and adviser at the Central Association of Agricultural Valuers, said minsters’ plans on how farmers are expected to pay this tax burden over 10 years was “simply not realistic.”
Stuart Maggs, head of tax and partner at Howes Percival law firm, told the committee that agricultural estates get a rate of return of about 0.5 percent to 1 percent.
Urged to Change Course
Prime Minister Sir Keir Starmer also came under pressure during Prime Minister’s Questions on Wednesday, including from Liberal Democrat leader Sir Ed Davey who asked the prime minister if he would “change course.”The prime minister reiterated his government’s position that “the vast majority of farmers will be unaffected.”
Asked whether Starmer had a message for farmers protesting in Westminster, Number 10’s official spokesman said, “This government recognises that food security is national security; that’s why we remain steadfast in our support for farmers.”
The spokesman also reiterated that the prime minister will not be rethinking his position, saying, “We have been clear that we understand the strength of feeling about the changes, but we are clear this will only affect a small number of estates.”