Environment Secretary Steve Reed is facing into a stormy reception today as he refuses to scrap inheritance tax on family farms.
Mr Reed is set to be greeted by protests outside the Oxford Farming conference, where he will deliver a speech promising a ‘new deal’ for the agricultural sector.
It came as Elon Musk backed farmers campaigning against Labour’s inheritance tax changes.
Commenting on images of tractors being driven through Beverley, East Yorkshire as part of the ongoing protests against the 20 per cent levy, the world’s richest man posted on X: ‘Good for the farmers.’
In his address today, Mr Reed is set to say that the government will make it easier for farmers to erect buildings on their land – and to put up wind turbines and solar panels. He will say the moves will help them diversify their businesses with farm shops and holiday lets.
Other expected announcements include a move to monitor how much UK food produce is bought by public sector institutions such as government bodies, hospitals, prisons and schools.
But his failure to back down on the IHT issue – which has already triggered a mass protest in Westminster last year – is likely to provoke a fresh wave of anger.
In his speech, Mr Reed will say: ‘The primary purpose of farming has – and always will be – to produce the food that feeds the nation.
Environment Secretary Steve Reed (pictured) is facing into a stormy reception today as he refuses to scrap inheritance tax on family farms
Dozens of tractors drove in convoy through the streets of Beverley, East Yorkshire, as part of a campaign by farmers against the tax they believe threatens the industry’s future
Elon Musk backed farmers campaigning against Labour’s inheritance tax changes
Tractors are driven through Westminster, London, to protest the changes to inheritance tax on December 11, 2024
‘Too many policymakers in Whitehall lose sight of that fact. This Government is putting food production firmly back on the agenda.’
He added: ‘We will work in partnership to achieve our vision for the farming sector. First, a sector whose primary purpose is food production.
‘Secondly, a sector where farmers can access diverse income streams to make a fair profit and ensure their business remains viable in times of challenge.
‘And thirdly, a sector which supports farmers to restore nature – the foundations of sustainable food production.
‘It is only through pursuing all three that we will achieve long-term food security.’
But farming leaders criticised the speech yesterday.
Farmers say the tax threatens the future of the vital industry (pictured: Recent protests in London)
Mr Reed is set to be greeted by protests outside the Oxford Farming conference, where he will deliver a speech promising a ‘new deal’ for the agricultural sector
Clive Bailye, a founder of the Farming Forum website and one of the organisers of the mass protest in Westminster, said: ‘Mr Reed’s speech will fall very flat. Nobody was expecting him to say anything on inheritance tax.
‘But these announcements aren’t anything new. He’s at the wrong conference, he should be at the energy producing conference.
He added: ‘Nobody is going to invest in farm buildings with the threat of inheritance tax hanging over them.’
NFU President Tom Bradshaw said: ‘There are positive elements to this announcement, but it fundamentally fails to recognise that the industry is in a cash flow crisis with the lowest farmer and grower confidence ever recorded.
‘That’s today. Many are worried about making it to the end of 2025, never mind what happens 25 years down the line.
‘Devastating inheritance tax changes, national insurance hikes, crippling cuts to direct payments1 and delays to environmental schemes mean many businesses won’t survive to benefit from the “New Deal”.
‘It’s great that government thinks farming and growing businesses should be more profitable and sustainable in the long-term.
‘It’s also good to hear the government say the primary role of farmers and growers is to produce food, but how is it going to ensure food production is profitable when thousands of farmers and growers are questioning whether they’ll still be in the industry in the next year?’
