UK pledges fair pay for farmers amid protests over inheritance tax changes

LONDON

UK Environment Secretary Steve Reed promised a comprehensive overhaul of the country’s food system to ensure farmers are paid fairly for their produce.

The announcement follows a mass demonstration by farmers in central London protesting against proposed changes to agricultural property relief on inheritance tax.

Reed addressed the issue at the Country Land and Business Association (CLA) conference, where he acknowledged the frustrations of rural communities.

"I heard the anguish of the countryside on the streets of London earlier this week," he said. "We may not agree over the inheritance tax changes, but this government is determined to listen to rural Britain and end its long decline."

The protests, which included farmers driving tractors around Parliament Square, were sparked by planned changes that would impose a 20% tax on the value of farms exceeding £1 million when passed down to family members.

Critics argue this could threaten the viability of family-run farms.

Tom Bradshaw, president of the National Farmers’ Union, described the proposal as “the final straw” for farmers already grappling with economic pressures.

He cited years of declining incomes, supermarket practices that leave farmers earning very little, and the withdrawal of EU subsidies post-Brexit.

Additionally, extreme weather has exacerbated the situation, further diminishing yields and incomes.

In response, Reed unveiled plans for a 25-year roadmap aimed at revitalizing the farming sector.

Describing it as "the most forward-looking plan for farming in our country’s history," Reed emphasized its focus on profitability and supply chain fairness.

He promised measures to ensure farmers receive fair prices from buyers, stating: "I’m not prepared to let so many farmers keep working so hard for so little."

He also committed to taking rural concerns directly to Prime Minister Keir Starmer, highlighting the growing divide between urban and rural communities.

The CLA has reported that rural economies are 16% less productive than the national average, underscoring the urgent need for targeted reforms.