16,000 farmers & 1,900 tractors take London over, 'Change Your Tune Starmer' family farm tax protest

Devon farmers rally at London protest

https://savebritishfood.org/

https://farmsnotfactories.org/

Devon farmers are warning Labour’s tax plans could dismantle family farms

https://www.devonlive.com/news/devon-news/devon-farmers-rally-london-protest-9933611

The streets of London are no stranger to protest, but when tractors from Devon roll into the capital and farmers swap fields for placards, it’s an alarming sight.

At the heart of this latest demonstration held on Monday, February 10, is a deep-rooted fear that the foundations of British agriculture are being eroded by government policies. Under the chancellor’s plan, an inheritance tax rate of 20 per cent will be introduced on farms worth more than £1 million.

A government spokesperson said last month: “Our reform to Agricultural and Business Property Relief will mean estates will pay a reduced effective inheritance tax rate of 20 per cent, rather than standard 40 per cent, and payments can be spread over 10 years, interest-free.

“This is a fair and balanced approach, which fixes the public services we all rely on, affecting around 500 estates a year.”

Among the protesters today is Jeremy Sanders-Carr, a Devon-based farmer who believes the Labour Party’s approach to taxation and regulation could dismantle family farms and endanger food security.

For Jeremy – who farms at Crabtree Farm near Exeter - the motivation to travel to London and stand shoulder to shoulder with fellow farmers was survival.

“Labour’s approach to IHT (Inheritance Tax) and the rural economy shows it’s clear they simply do not understand the economics of agriculture and the differences between liquid wealth and farm assets,” he says. “Assets that are rarely crystallised as cash, thus enabling farming businesses to be multigenerational.”

Put plainly, Jeremy says that farm businesses don’t operate like city firms with liquid assets ready to be taxed or redistributed. He says their wealth is tied up in land, livestock, and equipment—things that can’t easily be sold without jeopardising the business itself. He claims politicians seem unwilling to engage with industry experts. “Labour are not listening,” he says. “And it risks food security.”

The policy causing the most alarm among farmers is the proposed changes to Inheritance Tax.

“IHT changes are key. They put farms at risk along with food security,” Jeremy explains. But the impact isn’t just economic—it’s personal. “They also are risking lives. I’ve heard more than once from elderly farmers they are better dead prior to the change coming in force.”

"There are also other changes—fertiliser tax, accelerated BPS reductions, pick-up tax. It all adds up to an attack on farming.”

Jeremy thinks these policies could be particularly devastating for farmers in the South West.

“The region is traditionally a mixed farming area, based upon family farms,” he says. “These farms are at greater risk from IHT, causing the break-up of existing businesses. Every change in generation would see portions of land sliced off, which would lead to the farm becoming totally unviable.”

Unlike the large estates in other parts of the UK, where wealthier landowners might be able to restructure finances to mitigate the damage, smaller, family-run farms in Devon and Somerset have little room to manoeuvre. For them, each generation’s inheritance isn’t a windfall—it’s a necessity to keep the farm alive.

So, what do farmers want from the government? The answer, according to Jeremy is a fair and informed discussion.

“A full and open conversation with farmers and their representatives so they can properly understand the impacts of the changes proposed,” he says. “I fully accept farmers need to contribute to the UK’s tax requirements—we already do via income tax, rates, council tax, VAT, etc. Only 4% of the general population pay IHT, but with changes to the rules, farmers will carry more of a burden in percentage terms than any other family business, with little or no ability to pay from earnings given a return on capital of less than 1%.”

His solution would be raising the threshold from £1 million to something more in line with the realities of farm businesses. “Say £10 million—that would go a long way to taking the risk away from family farms.”

He also says the public are unaware of what is at stake and believes there’s a widespread misunderstanding of farming finances and the way agricultural businesses operate.

He says: “They see expensive tractors and think we buy them for fun. They are a tool and an investment, like any other business. They have little concept of how such items are financed or the levels of debt farmers carry.”