DAILY Bites
-
Thousands rallied in London against a proposed 20% tax on farms over £1 million, starting in 2026.
-
Farmers say the tax will force sales of generational farms with low profit margins.
-
Some officials say most farms are exempt, but other entities warn up to 70,000 could be affected.
DAILY Discussion
British farmers rallied in London this week to protest the Labour government’s proposal to extend inheritance tax to agricultural land, a measure critics have dubbed the “tractor tax.”
The planned tax, announced last month as part of the government’s budget, would impose a 20 percent levy on farm values exceeding £1 million ($1.27 million) starting in 2026. The policy aims to raise funds for public services but has sparked significant backlash from farming communities.
On Tuesday, approximately 13,000 demonstrators gathered in Parliament Square, holding signs with messages like “no farmer, no food, no future” and “Starmer the farmer harmer,” referencing Prime Minister Keir Starmer. The protest was accompanied by a mass lobby event organized by the National Farmers’ Union, where farmers engaged with about 150 Members of Parliament.
Before this policy, farms could be passed down tax-free. Farmers argue that while their land and equipment hold high monetary value, their operations often run on tight profit margins, leaving them unable to pay the proposed tax without selling their farms.
Emma Robinson, a farmer from northwest England whose family has operated the same land for 500 years, expressed her outrage, telling Reuters, “I’m absolutely livid. … It’s being taken out of my hands by someone that’s been in Parliament for literally days.”
Olly Harrison, another protesting farmer, told Al Jazeera, “We’re not tax dodgers. If we were making profits, tax our profits. But if we’re not making profits, we can’t pay inheritance tax.” He added that the value of farmland on paper does not reflect its practical financial significance.
The government has sought to reassure critics, stating that the tax will affect only about 500 farms annually and can be paid in installments over 10 years. Additionally, existing exemptions could raise the effective threshold to £3 million ($3.8 million) for married couples. However, the Country Land and Business Association has warned that up to 70,000 farms could be impacted.
NFU President Tom Bradshaw criticized the government’s position, telling Sky News, “You cannot have a policy in place which has such disastrous human impacts and think we’re going to go quiet.” Bradshaw hinted at potential “militant action” from farmers if the policy is not reversed, including possible disruptions to food supplies.
Starmer defended the policy on Monday, stating that “the vast majority of farms” would not be affected under the outlined thresholds. However, the escalating tensions suggest this issue will remain a contentious battle between the government and the agricultural sector.
