Farmers threaten strike action over inheritance tax hike

The angry backlash over the decision to apply inheritance tax (IHT) to agricultural land is gaining huge traction with farmers threatening to go on strike to disrupt food supplies.

Tens of thousands have also signed a petition calling on the government to reverse its decision.

As each day passes since the Budget, the momentum builds.

On Monday 4 November, farmers who allow sewage sludge to be spread on their land were being urged to refuse further deliveries, potentially causing a major incident.

See also: NFU plans London rally over future of family farms

This comes after farmers have also suggested withholding food supplies in the run up to Christmas, threatening UK food security.

Staffordshire arable farmer Clive Bailye says strike action is a strong possibility.

“It is a big ask for farmers who are producing fresh produce, but for the first time I think this situation has pushed farmers to think ‘I have got nothing to lose here’,” he told Farmers Weekly.

Mr Bailye is also supporting the call to action on sewage sludge.

“This will ultimately lead to huge disposal problems that our government will have to deal with,” he said.

While protest gatherings are also planned, there is genuine fear among farmers that the government could use the Police, Crime, Sentencing and Courts Act (PCSCA) against those involved in direct action – as they did following the riots which broke out after the Southport knife attack.

Mass lobby

The NFU is planning to hold a peaceful mass lobby of MPs in Westminster on 19 November, with farmers from England, Wales and Scotland planning to be there.

President of NFU Scotland Martin Kennedy – who will be among that lobby – predicts that the IHT changes will have a “seismic” impact on Scotland’s farmers and crofters.

“This Budget has completely unnecessarily created anger, frustration and worry, and it is inherent on the government to return to its pre-election promises, unpick the damaging budget, and stand by the farming sector,” he said.

Separately, farmers are threatening to take their tractors to London on the same day for a demo, which could grind the capital to a halt.

NFU Cymru view

In Wales, NFU Cymru president Aled Jones described the proposal to remove IHT reliefs as “disturbing”.

He said: “This tax-raid on agricultural property and businesses is misguided and will seriously harm our family farms, rural communities and our ability to produce affordable food for the nation, while delivering negligible revenue to the Treasury in terms of overall government spending.” 

Thousands have vented their opposition to the planned changes online, adding their signatures to an NFU petition.

And it is gaining thousands more supporters by the hour with its target of 130,000 signatures expected to be achieved by the end of the day on Monday (4 November).

In her latest round of interviews, chancellor Rachel Reeves has given no indication that she will consider reversing her IHT rise, arguing that the old system was too costly because of strains on public finances.

Other Labour ministers have been defending the changes, including Welsh secretary Jo Stevens who suggested that the government doesn’t expect it to have a significant impact on farmers.

But many farmers, including Yorkshire pig farmer Anna Longthorp, disagree.

She suggests that food security is in jeopardy and that the fallout could be “spiralling costs to consumers”.