Back in the early 2000s british farmers and truckers joined forces to create a nation-wide protest that shook the government: blocking roads fuel terminals and causing widespread disruption. Tony Blair had to use emergency powers but public support stayed with protesters
The situation now looks similar as farmers prepare for a huge rally this tuesday (three times bigger than first planned) Its not about fuel prices this time - the fight is about inheritance tax changes that could destroy many family farms
New rules announced by Rachel Reeves will put a 1-million pound cap on Agricultural Property Relief starting 04/26: any farm worth more than that will face a 20% tax hit. Treasury says most farms wont be affected but Department for Environment Food and Rural Affairs data shows different numbers
Very few viable farms are worth under £1m. That could buy 50 acres and a house today but no viable food-producing business is 50 acres – the average UK farm is over 250 acres
Most family farms work with thin profits (less than 5%) and face many cost issues. The seven-year inheritance rule wont help older farm owners who need to pass their land soon
- Farms already deal with high fertilizer costs
- Weather problems affect crops more often
- Big supermarkets keep prices low
- Most farms dont have extra money saved
The governments stance might change soon - just like it did 24 years ago. With economy growing only 0‚1% last quarter and food security at risk a quick solution would be smart. The tax rules need fixing but breaking up working farms isnt the answer