Farmers across the UK are raising alarms about Labour’s proposed tractor tax. They believe it could seriously harm agricultural businesses. Rachel Hallos, a livestock farmer and vice president of the National Farmers’ Union (NFU), expressed deep concerns about plans to expand inheritance tax to include agricultural properties.
Currently, farms valued at £1 million or more could face a hefty 20% inheritance tax. To voice their worries, farmers have organized protests on Saturday as part of a National Day of Unity. They are bringing food, tractors, and livestock to town centers throughout England, Wales, Scotland, and Northern Ireland.
This demonstration follows a petition signed by over 270,000 people, delivered to 10 Downing Street by NFU leaders. They are urging the government to reconsider what they call a “devastating family farm tax.”
Rachel Hallos emphasized that the inheritance tax reforms could be catastrophic for farming businesses. She is hopeful that the protests will help the public understand the impact of these changes. Hallos explained, “The food supply chain is complex, and farmers play a vital role at the beginning of that chain.”
She also pointed out that the government seems unaware of the interconnectedness of rural businesses. “Every part relies on the other,” she added. The solidarity among farmers is strong, and they hope to engage the government in serious discussions about their concerns.
A recent report from the Office for Budget Responsibility (OBR) suggests that the new tax policy might not generate the expected £500 million in revenue. The forecast is uncertain and likely to decrease over time as families adapt their financial strategies to avoid these taxes.
Even major retailers, like Tesco, joined the farmers in opposing this tractor tax. They warned that UK food security is at risk. However, Treasury Minister James Murray remained firm, stating that the government would continue with their plans, arguing that these reforms are necessary to support public services.
While the Treasury claims only estates worth over £3 million would face the tax—affecting about 28% of family farms—Defra data indicates that up to 66% could actually be impacted.
The protests this Saturday happen in cities like Cambridge, Warwick, and Selby in North Yorkshire. NFU representatives say the goal is to boost visibility for their campaign and thank the public for their ongoing support for farmers.
In response, a government spokesperson asserted their commitment to agriculture, promising to invest £5 billion in farming over the next two years. They described the changes to inheritance tax as fair and balanced, emphasizing that only about 500 estates would be affected annually.
As the debate continues, farmers remain determined to advocate for their livelihoods and the future of British agriculture.
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