Rachel Reeves has refused to back down over the planned extension of inheritance tax to agricultural properties, telling farmers they must pay their share to fund public services including the NHS.
Her remarks come despite thousands of farmers descend on London for a major protest on Tuesday, held alongside a mass lobby of MPs in Westminster where National Farmers’ Union (NFU) president Tom Bradshaw is expected to say that the betrayal on the tax changes is extraordinary.
The union chief will warn that farms producing the country’s food will need to be broken up and sold as a result of the policy, “because farmers simply won’t have the money to pay this tax any other way”.
“Our request is simple – this is a policy that will rip the heart out of Britain’s family farms, launched on bad data with no consultation and it must be halted and considered properly, taking in the views of the experts not just Treasury civil servants,” he will say.
The protest, taking place on 19 November, is now expected to easily exceed the original 5,000 to 10,000 estimated by the Farming Forum which is organising it, The Independent understands.
But in a joint statement with environment secretary Steve Reed on Monday Ms Reeves defended the policy, insisting the government had taken difficult decisions to fix gaps in the public finances.
“The reforms to agricultural property relief ensure that wealthier estates and the most valuable farms pay their fair share to invest in our schools and health services that farmers and families in rural communities rely on,” she said.
Mr Reed met with Mr Bradshaw on Monday evening ahead of the protest. However, it is understood the government has not lined up anyone to attend the mass lobby of MPs on Tuesday morning.
The chancellor’s latest defence of the policy comes after Baroness Mallalieu became the first Labour peer to publicly criticise the policy, saying the changes “smell of incompetence”.
Baroness Mallalieu, who is also the president of the Countryside Alliance, told BBC Radio 4’s Westminster Hour: “There was no impact assessment done. The figures differ between the Treasury and Defra, and certainly differ from those of the NFU.
“But I hope what they will do is look at it very carefully, and just see what the unintended consequences were.”
Those taking part in today’s march have been asked to start gathering in Richmond Terrace, by Victoria Embankment Gardens, from 11am.
It will be led by farmers’ children on toy tractors “signifying the impact of the devastating Budget on the future of farming and the countryside”, say organisers.
It is expected that protesters will be joined by celebrities including Jeremy Clarkson and politicians with speeches outside Downing Street. They will also be addressed by NFU president Tom Bradshaw, who has been extremely critical of the government’s announcement.
Tory leader Kemi Badenoch, who has promised to reverse the “cruel tax hike” if her party wins the next election, will also join the march.
The row over the tax was enflamed by leading Labour figure John McTernan, who last week suggested that the country does not need family farms.
Sir Keir was forced to distance himself from the remarks after Mr McTernan said family farming is “an industry we can do without”.
Treasury data shows that around three-quarters of farmers will pay nothing in inheritance tax as a result of the controversial changes.
But farmers have challenged the figures, pointing instead to data from the Department for Environment, Food and Rural Affairs, which suggests 66 per cent of farm businesses are worth more than the £1m threshold at which inheritance tax will now need to be paid.
Meanwhile, farmer Gareth Wyn Jones told GB News he wont be selling any lamb or any beef this week to “show what’s to come in the future”.
He said the government is failing to protect “the people that are feeding them”, adding: “We are going to have serious problems in the foreseeable future with food shortages.”
“As an industry, our job is to produce food affordably, seasonably, help feed nutritious food for everybody in this country. If we have a 20 per cent increase in inheritance tax, we’re going to have to get it from somewhere.
“The only way we can do it is to add on to our produce and once that produce is up 20 per cent, the poorer people in society are going to struggle”, he continued.
Ms Reeves and Mr Reed said: “Farmers are the backbone of Britain, and we recognise the strength of feeling expressed by farming and rural communities in recent weeks. We are steadfast in our commitment to Britain’s farming industry because food security is national security.
“It’s why we are investing £5 billion into farming over the next two years – the largest amount ever directed towards sustainable food production, rural economic growth and nature’s recovery in our country’s history.
“But with public services crumbling and a £22 billion fiscal hole that this Government inherited, we have taken difficult decisions.
“The reforms to Agricultural Property Relief ensure that wealthier estates and the most valuable farms pay their fair share to invest in our schools and health services that farmers and families in rural communities rely on.”
