Hundreds of tractors arrived in central London on Wednesday afternoon for the second Westminster rally against Labour’s so-called “tractor tax”.
Farmers travelled into the capital from across the country, including from Exmoor, Shropshire, Somerset and the home counties, for the latest protest.
The vehicles lined up on Whitehall from 10am ahead of speeches at noon and a slow drive around central London from about 12.45pm.
The “RIP British Farming” protest is the second major demonstration to be held in London against Labour’s inheritance tax shake-up announced in last month’s Budget, which will see farms with assets with over £1 million lose their exemption to inheritance tax.
Follow the latest updates below…
Tax expert warns that raising IHT will only ‘slightly’ slow land price inflation
10:45 , Daniel Keane
Dr Arun Advani, director of the think tank CenTax, has told MPs at the Environment Committee that raising inheritance tax rates to 20 per cent for agricultural assets over £1 million will probably only “slightly” slow land price inflation.
He said: “The concern with the way the reform has been done is that it still leaves … roughly 20 per cent effective rate above the threshold that’s been set.
“One reason for doing that is because there are farmers who you might be concerned about, who are earning, who have wealth a bit above the current tax-free threshold, who you want to give a low rate to because of the well documented concerns about incomes of farmers.
“But the downside is it still means that if you have, say, £100 million or a billion pounds that you want to put into farmland, 20 per cent rate is still much more attractive than other sorts of assets.
“And so what you will still have in this world is people who want to buy up agricultural land, competing with genuine farmers, who are trying to expand their farm, who really are actually wanting to work on the land. They’re still going to have to compete with much better off people.”
Farmers arrive in Westminster for latest protest
10:27 , Daniel Keane
The first tractors have arrived in Westminster with much fanfare, honking and drawing cheers from some passersby near Parliament Square in central London.
The tractors are driving around Parliament Square, many of them flying the Union flag.
They are also decorated with signs that read: “No farmers, no food”, “Not hungry, thank a farmer”, and “Save British Farming”.
Another sign read “Starmer Farmer Harmer”, and a second one “Reeves and Starmer, grave robbers”.
Pictured: Tractors line up outside Westminster
10:17 , Daniel Keane
Meanwhile… Environment committee kicks off in parliament
10:15 , Daniel Keane
The Environment, Food and Rural Affairs Committee has kicked off as farmers start to gather outside the Palace of Westminster for further protests against changes to inheritance tax.
MPs are first hearing from countryside and farming leaders and financial experts on the effects of the changes to inheritance tax.
First up is Jeremy Moody, secretary and adviser at the Central Association of Agricultural Valuers (CAAV), David Sturrock, senior research economist at the Institute for Fiscal Studies think tank and Stuart Maggs, head of tax and partner at Howes Percival law firm and Dr Arun Advani, director of the think tank CenTax.
Committee chairman Alistair Carmichael said: “This morning, we are going to be scrutinising the potential impacts of the proposed changes to agricultural property relief and business property relief on the farming sector.”
Labour insist commitment to farmers is ‘steadfast’
10:02 , Daniel Keane
Environment secretary Steve Reed has insisted that Labour’s commitment to farmer’s is “steadfast”.
He told reporters that the Government’s £5 billion two-year farming budget was “the largest ever directed at sustainable food production in our country’s history.”
Asked if Sir Keir was concerned farmers could get more militant and restrict food supplies, a spokesman for the PM said: “We have been very clear we are not going to change course on this policy.
“It was necessary to take tough decisions at the Budget and the spending review and those decisions remain.
“But our commitment to farmers is steadfast and our message to farmers is clear, that is why we provided £5 billion to the farming budget over two years including more money than ever for sustainable food production.”
Pictured: Tractor en route to Westminster
09:46 , Daniel Keane
Motorists in London can expect to see tractors on the roads heading into central London this morning.
Farming campaigner Gareth Wyn Jones has captured one tractor en route to parliament.
What are the protesters demanding?
09:43 , Daniel Keane
Today’s protest is organised by Save British Farming, a campaign group set up to protect the agricultural industry and food security.
In a petition posted online, they have outlined various demands for the Government.
These include:
– Ensure fair trade and protect standards through trade deals that preserve high standards of food safety, animal welfare, and environmental protection
– Stop the dishonest labelling of food, which they claim “deceives consumers and undermines British food”
– Address the shortage of labour through “immediate measures”
– Provide adequate funding and support by investing in “research, development and the adoption of modern farming techniques”
What is the farmer’s protest all about?
09:34 , Daniel Keane
The extension of inheritance tax (IHT) to farms worth more than £1 million is the main reason behind the farmer’s protest.
The budget delivered by Rachel Reeves extends IHT to agricultural land and has drawn criticism from farmers.
It also freezes current inheritance tax thresholds for two more years from 2028 until 2030.
Currently the first £325,000 of an estate is tax free before being subject to IHT at 40 per cent, although various allowances mean for most people the actual threshold is much higher. The rate for farms will be 20 per cent as a 50 per cent relief will be available.
Labour insist that allowances mean most estates worth less than £3m will not pay any IHT.
Welcome
09:26 , Daniel Keane
Good morning and welcome to the Standard’s live coverage of the upcoming farmer’s protest.
We are expecting tractors to line up on Whitehall at around 10am, with speeches to begin after midday.
As the farmer’s begin their demonstration, ministers will publish a report analysing the state of UK food security.
And MPs on the Environment, Food and Rural Affairs Committee will hear from countryside and farming leaders and financial experts on the impacts of the changes to inheritance tax.