Farmers' leaders frustrated at Treasury knock-back

They are urging members of the public to write to their local MPs in support of the industry.

Heads of various farming unions and the Country Land and Business Association (CLA)  met with exchequer secretary to the Treasury James Murray MP and farming minister Daniel Zeichner on Tuesday.

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They put forward alternatives to the government's plan to impose 20% inheritance tax above a £1m threshold on farmers, payable over 10 years interest-free.

But they emerged dejected and angry after the government showed "no enthusiasm or appetite" for compromise.

NFU Suffolk council representative George Gittus - who farms at Saxham, near Bury St Edmunds - said they met with a "brick wall response" from government and went on to criticise the government plans as  "ill-thought-out, appallingly calculated and damaging".

Suffolk farmers are now looking to what comes next. Many have been consulting their accountants and solicitors as they prepare for the new tax to take effect next year.

Farmers on the 18-strong committee at East Anglian Farmers Unite - which has organised two protest tractor rallies so far along the A14 in Suffolk - are due to meet later this month to discuss their next moves.

At the meeting with Treasury officials this week, farm chiefs put forward an alternative that if the farm is sold within a certain timeframe, then that will trigger the tax - but that idea was rejected.

Tom Bradshaw, president of the National Farmers' Union (NFU) - who farms at Fordham, near Colchester - was deeply disappointed.

Tom Bradshaw after the meeting at the Treasury (Image: Lloyd Sturdy / NFU) “Heads in the sand, fingers in ears, zero empathy. What a way for a government to behave," he said.

"They don’t care. On the impact on families who can’t afford vast tax bills coming their way on the death of a loved one they don’t care.

"On the elderly – the most vulnerable people in our farming community – who feel they are now a burden on their family they don’t care.

“This morally bankrupt position sits with this government, and, without change, ministers will reap the consequences."

The CLA claimed the average 350-acre English arable farm owned by a couple would need to spend 99% of their yearly profit over a decade to afford their inheritance tax bill.

CLA president Victoria Vyvyan accused the Treasury of "going through the motions" and showing no interest in farming or family businesses - or looking at alternatives.

CLA president Victoria Vyvyan (Image: CLA) “This plan would also target those who have bought land to shelter wealth for short-term gain, and will still deliver revenue that the Treasury needs," she said.

Tattingstone farmer Russel Abbott of East Anglian Farmers Unite, pointed out that farmers were getting the same price for a tonne of wheat as they did in the 1980s - but today's costs are far greater.

Russel Abbott (Image: Lucy Taylor) "We are all angry with the response," he said of the Treasury meeting. "They aren't willing to listen. I can't work them out. That's the honest truth, because it's literally going to ruin farming and every related business to it."

Prime minister Keir Starmer was willing to invest in protecting the Ukrainian border "but he's not willing to help our own - that makes me cross", he added.

"They are sending money out abroad to various other countries for farming and investing in various other stuff and they are not investing in food security. It's a massive issue," he said.

"Nobody is investing. Everyone has to hold money to pay a tax we simply cannot afford."

He added: "We won't back down. We'll stand our ground. We have too much tied up in this."

NFU Suffolk chairman Glenn Buckingham - who farms at Framsden, near Debenham - said it was "hugely frustrating for farmers here in Suffolk".

Glenn Buckingham (Image: NFU) “Our president Tom Bradshaw went into that meeting with well thought-out alternative proposals, worked out with tax experts, which would help raise significant income for the government and work to tackle tax avoidance, things which the government’s current proposals simply do not achieve.

“They would avoid devastating the rural economy and forcing small and medium-sized family farms out of business, as they will simply not have the money to pay the inheritance tax.

“But sadly there was never any intention from the government to properly engage with us. This government is refusing to listen to experts."

Elderly farmers will be "horrifically exposed", he warned, with no time to plan changes.

“The Stop the Family Farm Tax campaign does not end here and we will continue to make our case, with NFU Conference in London next week the next step forward, when we will again attempt to engage with leading figures in the government," he said.

“I urge all farmers and members of the public who value their farmers and growers in Suffolk to write to their MPs, urging them to push for the government to pause this damaging inheritance tax policy and hold it up to proper scrutiny and consultation.”    

The government insists it is taking a "fair and balanced" approach and that the planned tax - which comes into force next year - would affect 500 estates.

It said it would invest £5bn in farming over the next two years. 

Environment secretary Steve Reed is due to address the NFU conference on Tuesday. On March 4, farmers are planning a "pancake rally" in London as they continue to fight the inheritance tax plans.