Without farmers, there is no food.
Engaging with local farmers today has strengthened my belief that the Labour government needs to promptly overturn its detrimental tax policies affecting the industry.
Join us in our stance: https://t.co/gCwPewxGJ4 pic.twitter.com/mhYKLuHR3m
— Rishi Sunak (@RishiSunak) November 19, 2024
The Secretary of State for Environment in the UK has vowed to overhaul the food system to guarantee fair payments for farmers based on the food they cultivate. This commitment follows considerable demonstrations in Westminster opposing modifications to inheritance tax. Steve Reed addressed the Country Land and Business Association (CLA) conference.
He remarked, “Earlier this week, I sensed the distress among the rural communities.”
When I cautioned in May about Labour’s intent to alter agricultural property relief, Steve Reed vehemently refuted it. He reiterated that assertion to multiple farming organizations, intensifying the feeling of betrayal experienced by numerous farmers, as demonstrated in today’s protests. https://t.co/uP52wLPkPC
— Steve Barclay (@SteveBarclay) November 19, 2024
“While we may not see eye to eye on the inheritance tax reform, this administration is resolute in its intention to heed the voices of rural England and to halt its prolonged decline.”
Reed underlined the need for urgent dialogue between rural and Labour constituencies, presenting this as a pressing matter to Prime Minister Starmer.
The productivity of the rural economy is 16% below the national average, as per CLA statistics. On Tuesday, thousands of farmers convened to protest the alterations to agricultural property relief, which imposes a 20% tax on farms valued over £1 million when transferred to family members.
Tom Bradshaw, president of the National Farmers’ Union, expressed that the tax change is the “final straw” following years of adversity. Farmers have faced pressures from supermarket chains, dwindling subsidies after Brexit, and extreme weather impacting yields.
Farmers’ concerns regarding inheritance tax
They are increasingly worried about the feasibility of transferring their operations to the next generation. Reed proposed a comprehensive 25-year plan for farming to tackle these apprehensions. The strategy aims to enhance profitability and fairness in agriculture and food production.
“I’m unwilling to allow so many farmers to toil away for so little,” he stated. The forward-thinking initiative prioritizes “fairness in the supply chain.” Its goal is to ensure farmers receive appropriate remuneration for their outputs. Reed noted that producers, farmers, and growers typically obtain a small fraction of the sales price of their products.
He brought attention to the escalating costs, like energy expenses, which are often borne by producers, leading to unsustainable practices. Victoria Vyvyan, president of the CLA, criticized the government for “taxing us into oblivion.” She voiced concerns among farmers about potentially losing their life’s work and urged for increased focus on rural matters. Reed conveyed optimism that his initiative would help rebuild trust within rural regions.
He emphasized, “This involves more than just a single issue. It encompasses a broader context, and we are witnessing a segment of rural England rallying in London, expressing to us—politicians and policymakers—that they feel overlooked, marginalized, and undervalued, and they seek change.”
The government’s pledge to address rural grievances and ensure equitable treatment for farmers seeks to rectify long-standing issues while recognizing the vital contribution of rural England.
