Farmers in Suffolk promise to keep protesting against inheritance tax changes until they're heard
Farmers in Suffolk will take part in a Day of Unity at the end of the month
Farmers in Suffolk tell us they won't give up lobbying the government to drop its changes to inheritance tax.
It comes after Environment Secretary Steve Reed yesterday apologised for the decision that he says 'had to be taken' to fix the public finances.
In a speech to the Oxford Farming Conference on Thursday, the Environment Secretary set out reforms to boost profitability in the farming sector by backing British produce and ensuring fair supply chains in a bid to reset relations with the sector.
Mr Reed said that while the primary purpose of farming is food production, farmers must be supported to restore nature and diversify their incomes to achieve long-term food security.
But anger over measures in last year's Budget, including introducing inheritance tax on farm businesses worth more than £1 million, overshadowed the announcement.
Farmers lined the streets in tractors and honked their horns outside while Mr Reed was repeatedly quizzed over inheritance tax changes as he answered questions inside.
The Environment Secretary acknowledged the decision on agricultural property relief was "very unwelcome" but argued that farmers' anger is "not just about one tax issue".
"What I'm hearing from so many is that the turmoil of recent years has made farming incredibly tough," he said, before pointing to rising input costs, tight margins, unfair supply chains, a shortage of skilled workers, growing concerns about extreme weather, and issues with access to European markets as well as with post-Brexit trade deals.
"We are asset rich but cash poor"
Glenn Buckingham is the Suffolk Chair of the National Farmers Union.
He told us that the inheritance tax changes will force farmers to sell their assets to survive: "When you do all the numbers, you will see that a significant proportion, if not all, of the profit for the farms that succumb to this tax will be lost...
"We are asset rich but cash poor, so when it comes to this kind of taxation level, especially at that intergenerational period when the farm changes hand from one generation to another, it's a massive tax on the business.
"The threshold is too low."
"We won't just give up"
Glenn will be joining other farmers in Suffolk on 25th of January for a Day of Unity, to show the Government that farmers aren't backing down from the issue: "The message has got to get through to all the politicians and we need them to be certain that we won't just give up on it.
"The proposal is incorrect and it needs to be scrapped... or the threshold needs to be increased to around £10 million.
"Some people will be upset with it, but if you're sitting on £10 million worth of assets you probably will survive."
NFU President Tom Bradshaw said: “Farmers haven’t taken this destructive policy lying down and we won’t give up. There is too much at risk – our families, our future, our heritage and the undermining of the very sector that produces a safe, secure supply of British food."
What does the Government say?
A Government spokesperson said: “Our commitment to farmers remains steadfast – we have committed £5 billion to the farming budget over two years, including more money than ever for sustainable food production, and we are developing a 25-year farming roadmap, focusing on how to make the sector more profitable in the decades to come.
“Our reform to Agricultural and Business Property Relief will impact around 500 estates a year. For these estates, inheritance tax will be at half the rate paid by others, with 10 years to pay the liability back interest-free. This is a fair and balanced approach which fixes the public services we all rely on."