Labour faces biggest protest over domestic policy as farmers to head to Westminster over inheritance tax row

18 November 2024, 07:38

By EJ Ward

The government is bracing for its largest protest over domestic policy since Labour came to power as farmers are set to take to the streets of Westminster tomorrow.

Ministers are preparing contingency measures to ensure supermarket shelves remain stocked as farmers escalate protests against a new inheritance tax policy. The government, however, has assured the public that food supplies will not be disrupted.

Tensions are high among farmers following the Labour government’s decision to impose inheritance tax on farms valued above £1 million.

Farmers have expressed fears that the policy could spell the end of family-run farms, while ministers maintain that the measure will only impact large estates.

Farming leaders have denounced the decision as a "betrayal" of rural communities but emphasised that strikes causing food shortages are not their preferred course of action.

Read more: Farmers descend on Welsh Labour conference to protest Keir Starmer appearance as PM defends budget decisions

Read more: Farmers may never forgive Labour for changes to inheritance tax rules on agricultural land, Tory Party claims

Inheritance tax threshold is a 'pernicious assault' on farmers says Save British farming spokesperson

On Tuesday, up to 20,000 farmers are expected to gather in Westminster to voice their opposition, joined by high-profile supporters, including TV personality and farmer Jeremy Clarkson.

The protest is set to be one of the largest against Labour’s domestic agenda since the party returned to power.

This growing unrest comes nearly three weeks after the Budget announcement of the tax changes, with anger showing no signs of abating.

The National Farmers’ Union (NFU) has distanced itself from any plans to withhold produce from shops. NFU President Tom Bradshaw said, “We do not support emptying supermarket shelves. However, I completely understand the strength of feeling. Farmers feel helpless and betrayed.”

Farming Minister Daniel Zeichner urged farmers to calm down, saying that “the vast majority will be fine” and criticising “extraordinary” claims about the numbers potentially affected.

“I urge people to look calmly at the detail and I think they will find that the vast majority will be fine,” Zeichner said on Sunday.

“The figures from the Treasury are very clear: under 500 farms a year are likely to be affected and I would say to people, take advice because every person’s situation is different and there will be many, many people who will find they are not actually going to be caught by this.”

Criticising claims that tens of thousands of farms would be impacted, Zeichner added: “People should look at the actual facts rather than the projections being made.”

Transport Secretary Louise Haigh acknowledged the challenges faced by farmers but defended the policy as “fair and proportionate.” She explained that the tax rate for farms would be significantly lower than for other estates and reiterated the government’s commitment to food security.

“We’ve prioritised food security and will work closely with farmers and the supply chain to prevent disruption,” Haigh said. Plans are being developed by the Department for Environment, Food and Rural Affairs (Defra) to mitigate any potential shortages.

The controversy has reignited long-standing tensions between Labour and rural communities, drawing comparisons to disputes over fox hunting during the party’s previous time in power. Farmers and rural advocates accuse the government of being out of touch with countryside issues.

Baroness Mallalieu, president of the Countryside Alliance, described the inheritance tax policy as “incompetent” and reflective of a “divorced urban perspective.”

Prime Minister Sir Keir Starmer, speaking at the G20 Summit in Brazil, defended the changes, stating he was “absolutely confident” that the “vast majority” of farmers would not be affected. He pointed to the £5 billion allocated in the Budget for farming over the next two years as evidence of the government’s support for the sector.

Farmers, however, remain sceptical, accusing the government of misrepresenting figures. Bradshaw highlighted that while 73% of farms may not be impacted, Defra’s own data suggests 66% of food-producing farms exceed the £1 million threshold. “This policy undermines the very industry responsible for national food security,” he said.

As farmers prepare to descend on Westminster, the government faces a critical test in managing rural discontent. With comparisons being drawn to historic clashes over countryside policies, ministers will need to navigate carefully to avoid alienating a vital sector of the economy. Whether the promises of support and reassurances will quell the anger remains to be seen.