Inheritance tax changes ‘bad for farmers' focus on environment'

South Wales Argus

23-05-2025

Alan Lovell, chairman of the Environment Agency, revealed that farmers caused a record number of pollution incidents in English rivers last year in a slideshow document obtained by the Times.
Serious pollution incidents from agriculture reached a record high, a document obtained by the Times shows. (Ben Birchall/PA)
The slides, which Mr Lovell presented to an audience of landowners at the Rivers' Forum 2025 in Maidenhead last week and have been seen by the PA news agency, outlined figures and a general overview of river pollution incidents in 2024.
One graph showed there were 77 recorded incidents of 'serious pollutions from agriculture' in England last year – up 54% 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.
However, Mr Lovell also outlined issues that are distracting farmers in a slide titled: 'Challenges for farmers bad for environmental focus'.
These include Chancellor Rachel Reeves's introduction of a 20% inheritance tax on agricultural properties and businesses, which has become a political flashpoint for a struggling industry, sparking major outrage and ongoing tractor protests.
Chancellor of the Exchequer Rachel Reeves introduced a 20% inheritance tax on agricultural properties and businesses (Hannah McKay/PA)
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.
Mr Lovell said the impact of all these challenges have lead to 'financial pressures' and 'Government nervousness' towards the sector.
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.
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.'
PA has contacted the Environment Department (Defra) for comment.