Labour tax raid on farmers could damage environment, watchdog warns
Labour's inheritance tax raid on farmers could harm the environment, a watchdog chief has warned.
Alan Lovell, chairman of the Environment Agency, said green farming could be damaged by initiatives including No10's increase in employers' national insurance and minimum wage, as well as issues with the sustainability farming incentive (SFI).
Mr Lovell made the claims in a slideshow document obtained by The Times.
The slides, which Mr Lovell presented to an audience of landowners at the Rivers' Forum 2025 in Maidenhead last week, outlined the issues in a slide titled: 'Challenges for farmers bad for environmental focus'.
These included chancellor Rachel Reeves's introduction of a 20 per cent inheritance tax on agricultural properties and businesses, which has become a political flashpoint for a struggling industry, sparking major outrage and ongoing tractor protests.
It also pointed to the Government 's increase in employers' national insurance and minimum wage, drought and floods in the last two years, issues with the sustainability farming incentive (SFI) and temporary labour restrictions.
The Government abruptly closed the SFI – which sees farmers paid public money for implementing sustainable practices – to applications in March after the money was all spent, with a reformed scheme not set to reopen until early next year.
Earlier this month, countryside campaigners warned the cuts to farm subsidies would threaten wildlife and damage attempts to protect the rural environment.
They said they feared that cuts in the payments could see farmers being forced to work their land more intensively to make up the shortfall.
Farmers and rural groups warned the result would be to further endanger wildlife, their habitat and the environment, such as hedges and woodland.
Mr Lovell said the impact of all these challenges have lead to 'financial pressures' and 'Government nervousness' towards the sector.
'Serious pollutions from agriculture'
The watchdog chief also revealed that farmers caused a record number of pollution incidents in English rivers last year.
One graph showed there were 77 recorded incidents of 'serious pollutions from agriculture' in England last year – up 54 per cent from 50 the year before and the highest level since records began.
The increase is likely partly because the Environment Agency has stepped up its annual number of farm inspections, carrying out 4,545 last year on water rules compared to around 1,000 annually in 2020.
Ministers have responded to public anger over the polluted state of England's rivers, seas and lakes with wide-ranging reforms to the water sector, which has been dumping increasing amounts of untreated sewage into waterways during periods of wet and stormy weather.
But agriculture pollution has also contributed to the crisis, with slurry, pesticides run-off and chicken manure washing into rivers, damaging habitats and species.
'A challenge we cannot face alone'
Rachel Hallows, National Farmers' Union vice president, said: 'As a farming industry, we know there's much more we can do to improve water quality issues but it's a challenge we cannot face alone.
'With the right funding support and regulation that helps not hinders, farmers can invest in their businesses and continue the great work that's already being carried out to better soil health and carefully manage how much manure and fertiliser is applied to fields.
'This is all about futureproofing our use of water. With the right approach and investment, we can not only keep delivering sustainable and affordable food and economic growth for this country but can also be transformative for water quality.'
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