Wed. Nov 13th, 2024
alert-–-farmers-threaten-to-block-‘every-port-in-britain’-amid-plans-to-protest-in-london-as-fury-continues-to-grow-over-rachel-reeves’-inheritance-tax-raidAlert – Farmers threaten to block ‘every port in Britain’ amid plans to protest in London as fury continues to grow over Rachel Reeves’ inheritance tax raid

Farmers are threatening to block ‘every port in Britain’ as fury continues to grow over Rachel Reeves’ inheritance tax raid. 

Discussions are also being held to withhold livestock in a bid to slow down the supply to supermarkets which could cause food shortages on shelves. 

Farmers are said to have felt ‘betrayed’ by Sir Keir Starmer as one farmer warned: ‘The Government and supermarkets need to realise the control we have as farmers.’

Under plans announced in last week’s Budget, inheritance tax will be charged at 20 per cent on agricultural assets above £1million – although Ms Reeves has said that in some cases the threshold could in practice be about £3million.

While the 20 per cent figure still represents a relief of 50 per cent compared to the standard rate, farming unions and opposition parties have criticised the move.

They argue it will make British farms uncompetitive – and, as the backlash continues to intensify, a group of plotters are now considering strike dates around a rally being organised by the National Farmers’ Union (NFU) in Westminster on November 19.

Under plans announced in the Budget, inheritance tax will be charged at 20 per cent on agricultural assets above £1million, although Rachel Reeves has said that in some cases the threshold could in practice be about £3million.

The 20 per cent figure still represents a relief of 50 per cent compared to the standard rate. But there are fears it will make British farms uncompetitive. 

The Chancellor used her first Budget last Wednesday to announce a change to agricultural property relief (APR) and business property relief (BPR) from April 2026 in a bid to secure more money for public services.

Budget documents state the Government wants to restrict the ‘generosity’ of APR and BPR for the ‘wealthiest estates’.

The first £1million of combined business and agricultural assets will continue to attract no inheritance tax.

But for assets over £1million, inheritance tax will apply with 50 per cent relief, at an effective rate of 20 per cent.

The Chancellor said ‘only a very small number of agricultural properties’ will be affected, although the National Farmers’ Union warned the reforms could force farmers to sell their family farms to pay the inheritance tax bill.

Ms Reeves said many ‘difficult decisions’ were needed in the Budget in order to fix public services and place the economy on a firmer footing.

One farmer with inside knowledge of the potential blockade told the Telegraph: ‘They will block every port in the UK if they have to. 

‘[This] could be a possibility to slow down the supply in the supermarket. The Government and supermarkets need to realise the control we have as farmers. The good thing with that is you have farmers everywhere so you can cover all the ports.’ 

Farmers may also stop taking sewage sludge and biosolids – remains of human waste after liquid has been removed – from water treatment plants in another move to down their pitch forks. 

Reports claimed that in online message forums, farmers are encouraging others to contact their sludge suppliers and notify them of a temporary halt to all deliveries. 

Experts say this could cause chaos for sewage and water companies as farmers in the UK take about 3.6 million tonnes of sewage sludge from water treatment plants and spread it on agricultural land.

Clive Bailye, the founder of the Farming Forum, said that although farmers were ‘very worried about going to prison’ they felt they needed to do something. 

‘I’ve got thousands of messages from farmers asking me how, when, where,’ he said. 

Merseyside arable farmer Olly Harrison, an unofficial spokesman for the group, told this week: ‘Never before have farmers been so united – sadly it’s in anger over this issue and they will not take it lying down, especially after the worst harvest ever.

The YouTube and Instagram star added: ‘Most don’t do this job for the money, they do it for the kids, and taking this right away through poorly thought out Government policy is horrifying. We already risk our home with the weather every day playing snakes and ladders, and now the Government has just cut the rungs off the ladders.

‘This decision has already proved itself to be costing farmers more than money.’ 

Mr Harrison also told The Times: ‘They say we are only ever four meals away from anarchy.

‘What Rachel Reeves doesn’t understand is how fragile the food supply chain is, and we saw in Covid how it only took a few days of panic buying to cause shortages.

‘If we stop goods leaving farms for a day or two it will happen faster than you think.’

Mr Harrison added that there would be no strike action just yet, given that the US presidential election is currently ‘taking up all the headlines’ – and there were also no plans to ‘interfere’ with Remembrance Day or ‘wreck’ Christmas.

He was speaking after a farmer’s son accused the Prime Minister of having ‘blood on his hands’ over the inheritance tax raid after his father’s apparent suicide 24 hours before the budget.

John Charlesworth, 78, ran a 70-acre farm on the outskirts of Barnsley, South Yorkshire, which had been in the grandfather-of-six’s family since the 1950s. 

But pre-Budget chatter predicting the tax raid had ‘eaten away’ at him, according to his 46-year-old son Jonathan, who has been running the farm in recent years.

Mr Charlesworth Jr told the Daily Mail: ‘I’m not sure you could publish what I’d say to [Sir Keir Starmer]. He’s got blood on his hands. He’s totally destroying an industry we rely on.’

He also said worries about the impact of inheritance tax was his father’s ‘main topic’ of conversation in recent weeks, adding: ‘This Government has absolutely zero understanding of agriculture.’ 

The Prime Minister’s official spokesman said: ‘Losing anyone to suicide is a tragedy and our sincere thoughts and condolences are with Mr Charlesworth’s family and friends.’ 

It also emerged that farmers could end up paying thousands of pounds more in car tax after a loophole that benefits pick-up truck drivers was closed in the Budget.

Vehicles such as the Ford Ranger and Nissan Navara will be classed as cars rather than vans from next April when the benefit-in-kind tax break for commercial vehicles ends, the paper reported.

It comes after the new shadow environment secretary said the ‘crass decision’ to remove some inheritance tax relief for farms had betrayed the Government’s lack of knowledge about the countryside.

Victoria Atkins said the move had ‘consigned family farms and businesses to being sold off and split up as families cannot afford massive tax bills’. 

Writing in the Telegraph, she added: ‘This is a serious mistake that Labour has made in their Budget. Their lack of understanding of the realities of farming was revealed in the crass decision to slash years of careful tax policy to keep family farms intact and protected from inheritance tax.’

She suggested the move would make the UK more reliant on imports, adding: ‘If farmers have to set aside money for a potential tax raid rather than investing in the farm, it will no doubt impact food production, increase prices and make British farmers less competitive.’

Ms Reeves has defended her proposed reforms to inheritance tax on farms by claiming it is not ‘affordable’ to keep the current system.

Meanwhile one of the UK’s largest animal feed producers has warned that the changes will have a ‘negative’ impact on food security.

George Weston, boss of Associated British Foods, which supplies farmers with feed and technology services, said the taxes on farms pose a threat to the country’s ability to grow its own food. 

He said: ‘If we are to grow more of our own food and benefit from the food security of growing things ourselves, then I think policymakers have got to create a more attractive environment for that farming community.

‘These changes to inheritance tax obviously operate in a very different direction.’

error: Content is protected !!