Latest news with #PancakeDayRally
The Independent
04-03-2025
- Business
- The Independent
Inheritance tax changes for farmers are ‘fair way to raise money', says minister
The Government has rejected farmers' concerns over inheritance tax (IHT) changes and insisted the reforms are a 'fair way to raise money'. Chancellor Rachel Reeves was urged by opposition MPs to reverse the 'family farm tax' and stop 'running away' from meeting farming unions, as farmers continued their protest action on Tuesday with a 'Pancake Day Rally' in Westminster. But her Treasury ministerial colleague James Murray said he spent time meeting with farmers' representatives and listening to their concerns, telling the Commons: 'We have to be honest that we disagree.' The policy would require farmers to pay a rate of 20% inheritance tax on agricultural property and land worth more than £1 million when they previously paid none. There is a higher threshold of £3 million for couples passing on their farms and the changes are due to come into force from April 2026. TUV leader Jim Allister, MP for North Antrim, told Treasury questions in the Commons: 'With farmers again protesting in Westminster today, why is the Chancellor of the Exchequer running away from meeting the farming unions across this nation? 'Why do those who feed our nation not deserve some of the Chancellor's time?' Ms Reeves remain seated and left the question to Mr Murray, who replied: 'Just two weeks ago I spent a fair amount of time meeting with representatives from the NFU and other representative organisations from different nations within the UK. 'I listened to their concerns, I listened to what they had to say. We have to be honest that we disagree. 'They do not agree with the Government's policy and I need to be direct about that because we had to take a number of difficult decisions at the budget, but I do not apologise for the importance of balancing the public finances and sticking to our fiscal rules.' Tim Farron, the environment, food and rural affairs spokesman for the Liberal Democrats, said: 'Britain is only 55% food secure. In these deeply uncertain times internationally, isn't it time to change policy when it comes to agriculture? 'Isn't this the day to get rid of the family farm tax and to undo the 76% cut in basic payments and invest in the people who keep us food secure?' Mr Murray replied: 'As I've made clear to other MPs, the changes to agricultural property relief are a fair way to raise money which is necessary to balance the public finances. 'Britain has excellent food security and that is a priority for this Government.' Conservative former Treasury minister Dame Harriett Baldwin earlier said: 'The art of taxation is extracting the largest amount of money with the lowest amount of squeaking from the goose and yet the Chancellor will have heard the honking of the tractors on Whitehall today, to raise an amount of money that will pay for less than one day of NHS spending. 'So will she commit today to reversing the family farm tax?' Mr Murray replied: 'The changes we've made to agricultural property relief and business property relief retain a generous relief for people who are accessing that benefit within the taxation system. 'It means that people will get £1 million without any inheritance tax being due, that is in addition to the existing nil-rate band spousal transfers – over that is up to an effective rate of 20% and any money which is due can be paid over 10 years interest free.'
Yahoo
04-03-2025
- Business
- Yahoo
Why are Britain's farmers protesting over Labour's inheritance tax changes?
Thousands of farmers are set to head to London for the latest in a series of protests as the 'Pancake Day Rally' against Labour changes to inheritance tax gets underway. Farmers and their allies will begin to gather from midday on Tuesday for speeches outside Parliament. Industry leaders say the plan put forward by chancellor Rachel Reeves during her first Budget last October, is 'marching the UK into a food crisis'. Police have warned attendees that they face arrest if they bring unauthorised tractors to Whitehall, as has been seen at previous events. This marks the first time such a warning has been put in place, with several tractors hitting the streets on central London in recent months. A Metropolitan Police spokesperson said: 'It is a criminal offence to breach the conditions or to incite others to do so – anyone doing so may face arrest.' However, a limited number of agreed tractors have been authorised. Organiser and farmer Olly Harrison has said the protesters will aim to explain to MPs 'the levels of investment needed in agriculture just to produce something simple like a pancake'. Here's everything you need to know about the issue: Previously, farming businesses qualified for 100 per cent relief on inheritance tax on agricultural property and business property. But now the tax is being imposed on farms worth more than £1 million, with an effective tax rate of 20 per cent on assets above the threshold, rather than the normal 40 per cent rate for inheritance tax. The Government says that the actual threshold before paying inheritance tax could be as much as £3 million, once exemptions for each partner in a couple and for the farm property are taken into account. The government has said 'difficult decisions' had to be made to fill a £22 billion fiscal hole it inherited from the Conservatives, and it is targeting the agricultural inheritance tax relief to make it fairer. It said figures showed that 7 per cent of the wealthiest estates account for 40 per cent of the total value of agricultural property relief, costing the Treasury £219 million. According to the Treasury, some 27 per cent of estates claiming agricultural property relief (APR) were above the £1 million threshold in 2021/2022, suggesting that nearly three-quarters of farms would not fall within the scope of the charges. The Treasury says around 500 estates a year are expected to pay inheritance tax under the changes. However, the National Farmers' Union (NFU) says farm businesses have also qualified separately for business property relief, which can cover things such as harvested grain and livestock, machinery and diversified businesses such as camping on a farmer's field. Now the two are combined, with a single £1 million allowance before inheritance tax is levied, which could mean more farms are in scope. The NFU points to figures from the Environment Department (Defra) showing that 66 per cent of farm businesses in England have a net value of more than £1 million. But the government has countered that analysis, saying that looking at asset value alone does not necessarily mean the farm will be affected, as it depends on individual circumstances. According to the NFU, while farms may have a high nominal asset value – the value of their land and business assets – the returns from farming are often very low, so farming families may not have the reserves to pay for inheritance tax liabilities without selling off assets. The NFU's president Tom Bradshaw said the change had left elderly farmers in the 'cruellest predicament', as they may not live for another seven years to take advantage of exemptions for gifting assets, or to hand over assets in a way that qualifies for the gifting exemption. He has also warned the changes could undermine investment as farmers will be wary of increasing the balance sheet as they will be liable to pay inheritance tax on it. There are also concerns that it could affect tenant farmers if landowners no longer benefit from having a tax exemption for farmed land. Mr Bradshaw said there was a feeling among farmers that the Government did not understand food production.
The Independent
04-03-2025
- Business
- The Independent
Why are Britain's farmers protesting over Labour's inheritance tax changes?
Thousands of farmers are set to head to London for the latest in a series of protests as the 'Pancake Day Rally' against Labour changes to inheritance tax gets underway. Farmers and their allies will begin to gather from midday on Tuesday for speeches outside Parliament. Industry leaders say the plan put forward by chancellor Rachel Reeves during her first Budget last October, is 'marching the UK into a food crisis'. Police have warned attendees that they face arrest if they bring unauthorised tractors to Whitehall, as has been seen at previous events. This marks the first time such a warning has been put in place, with several tractors hitting the streets on central London in recent months. A Metropolitan Police spokesperson said: 'It is a criminal offence to breach the conditions or to incite others to do so – anyone doing so may face arrest.' However, a limited number of agreed tractors have been authorised. Organiser and farmer Olly Harrison has said the protesters will aim to explain to MPs 'the levels of investment needed in agriculture just to produce something simple like a pancake'. Here's everything you need to know about the issue: What are the changes to farm tax? Previously, farming businesses qualified for 100 per cent relief on inheritance tax on agricultural property and business property. But now the tax is being imposed on farms worth more than £1 million, with an effective tax rate of 20 per cent on assets above the threshold, rather than the normal 40 per cent rate for inheritance tax. The Government says that the actual threshold before paying inheritance tax could be as much as £3 million, once exemptions for each partner in a couple and for the farm property are taken into account. Why have the changes been brought in? The government has said 'difficult decisions' had to be made to fill a £22 billion fiscal hole it inherited from the Conservatives, and it is targeting the agricultural inheritance tax relief to make it fairer. It said figures showed that 7 per cent of the wealthiest estates account for 40 per cent of the total value of agricultural property relief, costing the Treasury £219 million. How many farmers will be affected by the changes? According to the Treasury, some 27 per cent of estates claiming agricultural property relief (APR) were above the £1 million threshold in 2021/2022, suggesting that nearly three-quarters of farms would not fall within the scope of the charges. The Treasury says around 500 estates a year are expected to pay inheritance tax under the changes. However, the National Farmers' Union (NFU) says farm businesses have also qualified separately for business property relief, which can cover things such as harvested grain and livestock, machinery and diversified businesses such as camping on a farmer's field. Now the two are combined, with a single £1 million allowance before inheritance tax is levied, which could mean more farms are in scope. The NFU points to figures from the Environment Department (Defra) showing that 66 per cent of farm businesses in England have a net value of more than £1 million. But the government has countered that analysis, saying that looking at asset value alone does not necessarily mean the farm will be affected, as it depends on individual circumstances. Why do farmers say the changes are a problem? According to the NFU, while farms may have a high nominal asset value – the value of their land and business assets – the returns from farming are often very low, so farming families may not have the reserves to pay for inheritance tax liabilities without selling off assets. The NFU's president Tom Bradshaw said the change had left elderly farmers in the 'cruellest predicament', as they may not live for another seven years to take advantage of exemptions for gifting assets, or to hand over assets in a way that qualifies for the gifting exemption. He has also warned the changes could undermine investment as farmers will be wary of increasing the balance sheet as they will be liable to pay inheritance tax on it. There are also concerns that it could affect tenant farmers if landowners no longer benefit from having a tax exemption for farmed land. Mr Bradshaw said there was a feeling among farmers that the Government did not understand food production.
Telegraph
02-03-2025
- Business
- Telegraph
Farmers protesting Labour tax raid at ‘Pancake Day Rally' face arrest, police warn
Farmers protesting Labour's inheritance tax raid on Pancake Day could be arrested if they drive their tractors at a planned march in central London, police have warned. Organisers have said that the 'Pancake Day Rally' on Tuesday aims to be 'bigger and better' than the previous two demonstrations, as their campaign against changes to inheritance tax rules continues. Attendees will march from Whitehall at around midday towards Parliament, with the demonstration due to end at 3pm. Conditions have been imposed under the Public Order Act preventing demonstrators from bringing tractors, other than a limited number already agreed by the organisers to demonstrate the costs of such specialist equipment, the Metropolitan Police said. Dept Asst Commissioner Ben Russell, who is leading the policing operation, said last month's protest saw a 'significant number of people attend with tractors and other large farming vehicles'. He said there were lengthy road delays, adding: 'It is our responsibility to ensure that protests don't cause serious disruption to the life of the community.' Scotland Yard warned that it is a criminal offence to breach the conditions or to incite others to do so, and that anyone doing so may face arrest. Protest on foot Olly Harrison, a farmer and one of the organisers, said: 'We don't need any tractors, this is on foot. We are going to have some kit to show to the MPs to explain the levels of investment. He added: 'Let's explain the levels of investment needed in agriculture just to produce something simple like a pancake.' Labour is pressing ahead with a 20 per cent inheritance tax rate on agricultural land and businesses worth more than £1 million, despite industry concerns that it will force land sales, stall investment and hurt families lacking succession plans. The changes are due to come into force from April 2026. A Government spokesman said: 'Our commitment to farmers remains steadfast. This Government will invest £5 billion into farming over the next two years, the largest budget for sustainable food production in our country's history. 'We are going further with reforms to boost profits for farmers by backing British produce and reforming planning rules on farms to support food production. 'Our reform to agricultural and business property relief will mean three-quarters of estates will continue to pay no inheritance tax at all, while the remaining quarter will pay half the inheritance tax that most people pay, and payments can be spread over 10 years, interest-free. 'This is a fair and balanced approach which helps fix the public services we all rely on.'
The Independent
01-03-2025
- Business
- The Independent
Farmers could be arrested if they drive tractors at rally, police warn
Farmers could be arrested if they drive their tractors at a march in central London, police have said. Organisers say the 'Pancake Day Rally' on Tuesday aims to be 'bigger and better' than the previous two demonstrations, as their campaign against changes to inheritance tax rules continues. Attendees will march from Whitehall at around midday towards Parliament, with the demonstration due to end at 3pm. Conditions have been imposed under the Public Order Act preventing demonstrators from bringing tractors, other than a limited number already agreed by the organisers to demonstrate the costs of such specialist equipment, the Metropolitan Police said. Deputy assistant commissioner Ben Russell, who is leading the policing operation, said last month's protest saw a 'significant number of people attend with tractors and other large farming vehicles'. He said there were lengthy road delays, adding: 'It is our responsibility to ensure that protests don't cause serious disruption to the life of the community.' Scotland Yard warned that it is a criminal offence to breach the conditions or to incite others to do so, and that anyone doing so may face arrest. Farmer Olly Harrison, one of the organisers, said: 'We don't need any tractors, this is on foot. 'We are going to have some kit to show to the MPs to explain the levels of investment. 'We've sorted all that out, you just get yourself there on foot,' he told those taking part. 'Let's explain the levels of investment needed in agriculture just to produce something simple like a pancake.' Labour is pressing ahead with a 20% inheritance tax rate on agricultural land and businesses worth more than £1 million, despite industry concerns that it will force land sales, stall investment, and hurt families lacking succession plans. The changes are due to come into force from April 2026. A Government spokesperson said: 'Our commitment to farmers remains steadfast. 'This Government will invest £5 billion into farming over the next two years, the largest budget for sustainable food production in our country's history. 'We are going further with reforms to boost profits for farmers by backing British produce and reforming planning rules on farms to support food production. 'Our reform to agricultural and business property relief will mean three-quarters of estates will continue to pay no inheritance tax at all, while the remaining quarter will pay half the inheritance tax that most people pay, and payments can be spread over 10 years, interest-free. 'This is a fair and balanced approach which helps fix the public services we all rely on.'
