Sunday, December 22, 2024

UK farmers plan to protest at Parliament over a tax hike they say will ruin family farms

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LONDON (AP) — With banners, bullhorns, toy tractors and an angry message, British farmers descended on Parliament on Tuesday to protest a hike in inheritance tax that they say will deal a “hammer blow” to struggling family farms.

U.K. farmers are rarely as militant as their European neighbors, and Britain has not seen large-scale protests like those that have snarled cities in France and other European countries. Now, though, farmers say they will step up their action if the government doesn’t listen.

“Everyone’s mad,” said Olly Harrison, co-organizer of a protest that aims to flood the street outside Prime Minister Keir Starmer’s office with farmers. He said many famers “want to take to the streets and block roads and go full French.”

Organizers have urged protesters not to bring farm machinery into central London on Tuesday. Instead, children on toy tractors will lead a march around Parliament Square after a rally addressed by speakers including former “Top Gear” TV host and celebrity farmer Jeremy Clarkson. Another 1,800 farmers held a “mass lobby” of lawmakers nearby organized by the National Farmers’ Union.

“The human impact of this policy is simply not acceptable, it’s wrong,” NFU President Tom Bradshaw told farmers gathered for the mass lobby. “It’s kicking the legs out from under British food security.”

Volatile weather exacerbated by climate change, global instability and the upheaval caused by Britain’s 2020 departure from the European Union have all added to the burden on U.K. farmers. Many feel the Labour Party government’s tax change, part of an effort to raise billions of pounds to fund public services, is the last straw.

“Four out of the last five years, we’ve lost money,” said Harrison, who grows cereal crops on his family farm near Liverpool in northwest England. “The only thing that’s kept me going is doing it for my kids. And maybe a little bit of appreciation on the land allows you to keep borrowing, to keep going. But now that’s just disappeared overnight.”

The flashpoint is the government’s decision in its budget last month to scrap a tax break dating from the 1990s that exempts agricultural property from inheritance tax. From April 2026, farms worth more than 1 million pounds ($1.3 million) face a 20% tax when the owner dies and they are passed on to the next generation. That is half the 40% inheritance tax rate levied on other land and property in the U.K.

Starmer’s center-left government says the “vast majority” of farms -– about 75% — will not be affected, and various loopholes mean that a farming couple can pass on an estate worth up to 3 million pounds ($3.9 million) to their children free of tax.

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