The National Farming Union (NFU) is staging a series of mass lobbies in London as part of its attempt to convince the UK Labour government to back down from planned changes to the country’s system of inheritance tax and farm transfer relief.

Tractors have taken to the streets in London as thousands of farmers attend the demonstration to protest against the surprise changes, while an estimated 6,000 of Northern Ireland's farmers gathered at an Ulster Farmers' Union meeting on the issue on Monday night.

The NFU has invited UK members of parliament to hear farmers’ concerns over the impact that the changes announced in the budget will have on many family farms.

NFU president Tom Bradshaw stated that the lobbying day has seen “great, great attendance”, with the room in London “very emotional” as farmers air their grievances with the plans.

The UK’s budget day heard plans to levy inheritance taxes of 20% on agricultural assets above £1m in value, although some other reliefs will be available to certain farmers in some situations, such as those that are married.

“This policy has to change. The government cannot tell me this is a well-considered, well-thought through policy,” Bradshaw said as thousands of farmers descended on London.

“We need to sit down with them, work through it and get to a conclusion that answers their questions, but gives family farms a future.”

Assets versus income

Speaking on BBC Newsnight on Monday, the day before the mass demonstration and lobby effort was planned, the farm leader pointed out that although non-farmers may see agricultural asset values above £1m as being a sign of wealth, farm incomes see a low return from these asset values.

“Very few people pay inheritance tax, I think it’s less than 4% of society full stop pays inheritance tax, but there is also this element where if you bring forward something like this, there must be an impact assessment,” Bradshaw commented.

It is planned that the inheritance of agricultural assets will be taxed at a rate of 20% over a value of £1m, but with some other reliefs available.

“When we look – we are obviously producing the country’s food – we look at the margins of food production, unfortunately, food price inflation has not kept up with real-terms inflation for the last four or five decades.

“We are making 0.5% return on producing this country’s food that everyone benefits from.”

The protests have seen celebrities including Jeremy Clarkson and Andrew Llyod Webber make appearances to voice discontent with the inheritance plans.

Government doubles down

The Labour government doubled down on the farm inheritance tax changes in a joint statement released by environment, food and rural affairs secretary Steve Reed MP and chancellor of the exchequer Rachel Reeves ahead of the protests in London.

The pair claimed to remain “steadfast in our commitment to Britain’s farming industry because food security is national security”.

“It’s why we are investing £5bn into farming over the next two years - the largest amount ever directed towards sustainable food production, rural economic growth and nature’s recovery in our country’s history.

“But with public services crumbling and a £22bn fiscal hole that this government has inherited, we have to take difficult decisions.”

The statement adds that the tax reforms “ensure that wealthy estates and the most valuable farms pay their far share” towards public services.