Rift between farmers and government remains despite £2.7bn boost

BBC News

18 hours ago

A rift between farmers and the government still exists despite a spending review providing £2.7bn boost to agriculture, a farming leader has told BBC Politics East.Essex farmer Tom Bradshaw, president of the National Farmers' Union, said the government's changes to inheritance tax for agricultural land will have a "human impact" which is "simply not acceptable"."This is a very real threat to the farming business. While that hangs over the farming industry, this relationship (with the government) will not be repaired," he said.The government said food security is vital and it is taking further action and providing extra funds to support British farmers.
Under the government's plans, from April 2026, inherited agricultural assets worth more than £1m, which were previously exempt, will be subject to inheritance tax at 20% - half the usual rate.NFU President Tom Bradshaw said: "At a time when we're increasing our defence spending that tells us we live in a volatile world."The other side is food security. We need to make sure we still continue to invest in this country's food production."He said it is not an "either/or" situation with regards to food or land management."I think they need to prioritise both at a time of global insecurity," he said.He said the government needs to "take the brakes off investment, because farms are investing in reservoirs, buildings and poultry sheds today".
"They are committed to food production for the next decade and beyond," he said."The relationship with the government is overshadowed by the budget and the announcement on inheritance tax and yesterday (the spending review) was another missed opportunity for the chancellor to recognise this needed to be changed," he said.Mr Bradshaw has criticised the "devastating family farm tax which will mean many farming families continue to be left in the lurch, unable to afford the future tax bill".He said there was a rift with the government despite being supportive of spending review and trade deals."On trade policy so far the government has looked after us pretty well," he said."They said they weren't going to cross those red lines on animal health and welfare standards and they have stuck to that."
Farming minister Daniel Zeichner MP (Lab, Cambridge) said: "Food security is vital to our national security, which is the foundation of our Plan for Change, and our commitment to farming remains steadfast."That's why we are investing £2.7bn a year into sustainable food production and nature's recovery, with funding for our Environmental Land Management schemes increasing by 150%."However, we must go further to support farmers across the country. "We are slashing costs for food producers to export to the EU, have appointed former NFU president Baroness Minette Batters to recommend reforms to boost farmers' profits, and we're ensuring farmers get a fair share of food contracts for our schools, hospitals, and prisons."
BBC Verify
Many of the claims from the government have been hotly contested by farmers, and BBC Verify has come under scrutiny over some of the figures it has relied on to try to establish the number of farms impacted by the change.The debate has revolved around estimates provided by farmers' groups, including that the new tax could "harm" up to 70,000 farms over time.BBC Verify found that the figure was likely to be somewhere closer to the number provided by the government - about 500 estates per year.Farmers' groups say the changes have been "built on bad data". The government says it wants to make the inheritance tax system fairer and discourage wealthy people from investing in land solely to avoid the tax.
BBC Politics East will be broadcast on Sunday 15 June at 10:00 GMT on BBC One in the East of England, and will be available after broadcast on BBC iPlayer.Follow Essex news on BBC Sounds, Facebook, Instagram and X.