UK farmers up ante over planned inheritance tax

UK farmers protest farm tax near Parliament, fearing heavy costs under Labour's plan

LONDON:

Hundreds of UK farmers with tractors blocked streets around parliament Monday hoping to force the Labour government to reverse a planned farm tax they insist will cost them dearly.

"War on farmers" read the message on one of several Union Jack flags flapping in the wind as opposition politicians joined in the latest demonstration against the levy, due to start next year.

Prime Minister Keir Starmer's administration recently announced that to find vital new revenue, some farms would no longer be exempt from inheritance tax, a long-standing measure designed to facilitate the family handover of farms.

"We'd have to sell the farm, we're not making enough money to continue and pay succession tax," Toby Cawston, aged 21, said of his 2,200-acre (890-hectare) farm in Suffolk, eastern England, should the government stand firm.

"It's unlikely that they listen to us, unfortunately," he told AFP.

From April 2026, the exemption will be capped at £1 million ($1.2 million). Beyond that, a 20 percent tax will apply, half the normal rate.

The government insists the tax will affect only the 500 largest properties and opportunists who have bought land to avoid taxes.

"This government's commitment to farmers is steadfast," Starmer's spokesman said Monday, noting it recently committed £5 billion to support "their vital role in delivering food security to people around the UK".

Farmers feel let down, however, and on Monday Nigel Farage, leader of the hard-right Reform UK party, voiced confidence the protests would force the government to U-turn.