2024 November United Kingdom farmers' protests
 | This article documents a current event. Information may change rapidly as the event progresses, and initial news reports may be unreliable. The latest updates to this article may not reflect the most current information. (November 2024) |
| 2024 November United Kingdom farmers' protests | |||
|---|---|---|---|
| Date | November 19, 2024 – ongoing | ||
| Location | |||
| Caused by |
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| Methods | Protests, lobbying | ||
| Status | Ongoing | ||
| Parties | |||
In November 2024, protests were organised by some farmers in London against new inheritance tax laws on agricultural land. The measure emerged from the Labour government of the United Kingdom budget plans, resulting in thousands of British farmers protesting in Parliament Square and addressing MPs directly in parliament.
Taxation
[edit]The dispute centered on changes to inheritance tax on agricultural assets. Previously, the intergenerational transfer of farms had been exempt from taxation as a result of a 1992 tax break.[1][2]
In November 2024, the newly elected Labour government announced plans to remove this tax exemption for farms valued over £1,000,000 in order to generate revenue for public services.[2] Set to take effect in April 2026, the new policy would see a 20% inheretence tax on farm valued over that threshold, half the usual rate of inherentence tax, and could be paid across ten years.[2] The inherentence tax exemption would remain in place for farms valued below the £1,000,000 threshold.[1][2]
Opposition to the change from some farmers stemmed from the claim that farmers, while asset rich, are "cash poor", which they claimed would create a situation where some inheriting families would have to sell their farm lands to meet tax obligations. Supporters of the change claimed that farmers' had been manipulating the tax break to avoid taxation on profits.[1]
Organisiations representing British farm owners said income declines across various agricultural sectors in the year ending February 2024, with some farms experiencing revenue drops exceeding 70%. Average annual incomes ranged from a modest £17,000 for livestock grazing operations to £143,000 for specialized poultry farms, further exacerbating the thinness of profit margins despite high land valuations.[3][4][2]
The scale of potential impact is a point of contention. UK Government figures suggested the measure would affect approximately 27 percent of farms in the UK (aproximately 56,700 farms),[5] equivilent to 500 farms annually.[1] The Country Land and Business Association (CLA) suggested that 35 percent of farms (aproximately 70,000 farms) would be impacted.[1][2] Analysis by BBC News Verifty stated that the figures of the UK government were more probable than the CLA's.[5]
Protests
[edit]On 19 November, thousands of farmers on Parliament Square in London to protest the planned agricultural inheritance taxation policies. The National Farmers' Union (NFU), through its president, Tom Bradshaw, promised sustained protest activities until their concerns were adequately addressed. The organization characterized the tax measure as having "disastrous human impacts" on farming communities.[1]
Among the protests included demonstrators wielding banners and bullhorns while children rode toy tractors around Parliament Square. Despite organizers' requests to avoid bringing agricultural machinery into London, a small group of real tractors proceeded past Downing Street, necessitating a Metropolitan Police response. Jeremy Clarkson addressed one crowd, calling the tax hikes a "hammer blow to the back of the head" of British agriculture.[4][6] A BBC News journalist put to him comments Clarkson had made previousl in the Times, saying he had only gotten into farming to avoid taxes.[7] The General Secretary of the NFU said that more extreme actions could be taken if the Government didn't u-turn.[6]
The protest included a coordinated lobbying effort involving 1,800 farmers entering Parliament to press their case directly with legislators.[3] NFU leaders engaged with approximately 150 Members of Parliament, warning of potential food shortages and the dissolution of family farming traditions. There were also concerns from some farmers that the change could lead to dependence on natural disaster-vulnerable foreign food imports from countries like Peru, Spain, or Portugal.[6]
Farmers who ploughed through No entry barriors are to be prosecuted.[6]
Responses
[edit]Prime Minister of the United Kingdom Keir Starmer, responded to concerns by emphasizing that the actual threshold for inheritance tax liability could reach up to as high as £3,000,000 pounds once various exemptions were applied, including considerations for couples and specific agricultural property relief.[1][6]
Secretary of State for Environment, Food and Rural Affairs Steve Reed defended the tax change as a measure to counter wealthy investors using agricultural land for tax avoidance, stating it had become "the most effective way for the super rich to avoid paying their inheritance tax."[3]
The National Farmers' Union claimed that more than 60% of farms could be impacted by tax implications. The organization's deputy president, David Exwood, said that the government had "completely blown their trust with the industry."[3]
Tory leader Kemi Badenoch said that she would u-turn on the move if the tories were elected in the Next UK general election.[6]
British campaigner Guy Shrubsole noted that while people were debating the change in inheretence tax, that 350 aristocratic estates remained inheretence tax exempt due to being counted under the ‘tax-exempt heritage assets’ scheme. He urged the government to close this tax loophole.[2]
See also
[edit]References
[edit]- ^ a b c d e f g "British farmers protest against 'tractor tax' on inheritance". Al Jazeera. Retrieved 2024-11-20.
- ^ a b c d e f g Horton, Helena (2024-11-19). "What are the key arguments in the farm inheritance tax debate?". The Guardian. ISSN 0261-3077. Retrieved 2024-11-20.
- ^ a b c d "Thousands of UK farmers descend on Parliament to protest a tax they say will ruin family farms". AP News. 2024-11-19. Retrieved 2024-11-20.
- ^ a b "Farmers march in inheritance tax protest in London". www.bbc.com. Retrieved 2024-11-20.
- ^ a b "Explaining the farming tax change row". BBC News. 2024-11-19. Retrieved 2024-11-20.
- ^ a b c d e f "NFU chief hints farmers could take more extreme action after inheritance tax protest". The Independent. 2024-11-19. Retrieved 2024-11-20.
- ^ "Clarkson clashes with BBC over inheritance tax comment". BBC News. 2024-11-19. Retrieved 2024-11-21.
