Tractors and tanks have descended on Westminster as farmers demand the Labour government rethinks its inheritance tax plan.
Hundreds have arrived from the countryside for a protest rally over plans to introduce a 20 per cent inheritance tax rate on farms worth more than £1m.
The event, organised by Save British Farming, is the third time farmers have rallied in the capital since chancellor Rachel Reeves announced the measure last year.
The farmers have parked up their tractors along Whitehall, with the stretch of vehicles going back as far as Trafalgar Square. Four tanks have also been spotted at the protest.
Protesters can be seen holding Union Jack flags and displaying banners in support of British farming.
So far, Labour has insisted it will not U-turn on its plans - but protest organiser Liz Webster told The Independent she hoped the action would bring ministers to the negotiation table.
She accused the government of “marching into a food crisis”.
The rally comes as MPs debate an e-petition with more than 148,000 signatures calling to keep the current inheritance tax exemptions for working farms.
Earlier, Nigel Farage called for an end to “death taxes” in his address to British farmers on their way to the protest. Ms Webster said the Reform UK leader was not invited to the event, accusing him of “jumping on the bandwagon”.
Key Points
- UK must respect Trump’s mandate but can share views privately, Mandelson says
- Trump imposes global tariffs hitting UK's steel industry
- Farmers vow to ‘haunt’ government until change enacted
- Reform UK leader calls for end of 'death taxes'
Trump imposes global tariffs hitting UK's steel industry
07:44
,
Tara Cobham
Donald Trump has said he plans to impose 25 per cent tariffs on “any steel coming into the United States”, adding that aluminium will also be subject to additional duties.
The UK Government is waiting to see details of the policy, but the steel industry body called for decisive action from ministers while unions warned further jobs could be put at risk in an already crippled sector.
Britain exported 166,433 tonnes of steel to the US in 2023, the last full year for which figures are available.
Figures from trade body UK Steel showed that in 2024 some 162,716 tonnes were sent to the US, but that does not yet include data from December.
The US is the industry’s second-largest export market after the EU, although the government said it only accounted for 5 per cent of UK steel exports in 2023.
Reports suggest the prime minister is hoping to visit Washington in the coming weeks, though Downing Street has not confirmed any upcoming travel.
So far in his second term in the White House, Mr Trump has imposed, but then delayed, duties on imports from Mexico and Canada, and has also imposed 10 per cent levies on goods from China.
UK must respect Trump’s mandate but can share views privately, Mandelson says
07:19
,
Tara Cobham
Britain must respect Donald Trump’s “strong and clear mandate for change”, Lord Peter Mandelson has said, amid questions over how the UK will respond to global tariffs threatened by the White House.
The UK’s top diplomat in Washington said that Sir Keir Starmer’s Government can “always make our views known privately and directly” but that it must “understand what drives him”.
Lord Mandelson acknowledged he was “concerned” about the looming prospect of tariffs and said Britain would “not necessarily agree” with every detail of the new US President’s agenda.
On how the UK could try to persuade Mr Trump to change his position on certain policy areas without alienating his administration, he told the BBC: “Well, we’ve got to take all these issues as they come, realise that the president has a very strong and clear mandate for change in the United States.
“Now that doesn’t mean to say that we’re going to agree in Britain with every single detail of what he does, but we have to respect and understand what drives him, what his mandate is to do, and how his allies need to adjust sometimes.
“And I believe that, given the relationship that we have, we can always make our views known – best, by the way, directly and privately.
“We have a strong relationship that enables us to influence the president and his policies where necessary, and it certainly should not affect our ability to work well together, and that’s what I intend remains the case.”
The Labour constituencies most unhappy about the ‘tractor tax’
07:01
,
Athena Stavrou
The pressure is building on several Labour MPs to revolt against government plans to change rules on inheritance tax for farmers, analysis by The Independent can reveal.
On Monday, hundreds of protesting farmers blocked Whitehall before MPs entered Parliament to debate a petition calling for a U-turn on Rachel Reeves’ controversial proposal.
Under the chancellor’s plan, a 20 per cent inheritance tax rate will be introduced on farms worth more than £1 million from April 2026. But it has sparked a furious backlash in farming communities and created a problem for many newly-elected Labour MPs in rural constituencies.
Read the full article:
Labour backbenchers call for ‘meaningful tweaks’ to farm inheritance tax plan
06:04
,
Athena Stavrou
Chancellor Rachel Reeves has faced calls for “meaningful tweaks” to planned inheritance tax on farmland from Labour backbenchers.
Sam Rushworth said that farmers who work a £5 million estate are “not millionaires”, while Julia Buckley said sector businesses currently face a choice to “go big or go bust”.
Conservative former Scottish secretary David Mundell warned that under plans to impose inheritance tax on agricultural property worth more than £1 million, farmers’ children will sell their land to private equity firms to cover the bill, and estates would instead be used for solar panels or industrial tree planting.
They made their comments during a debate about a House of Commons petition which called on Treasury ministers to carry on with a 100% relief from inheritance tax covering agricultural property.
Every major supermarket turns on Starmer over tractor tax
05:09
,
Athena Stavrou
Every major British supermarket has turned on Sir Keir Starmer over his tax-hiking Budget, warning the raid on family farmers will put food supply chains at risk.
Tesco, Sainsbury’s, Morrisons and Asda are among the supermarket giants signed up to a damning letter warning over “the long-term stability of the nation's food resilience”.
Lidl, Aldi, Co-op and Marks & Spencer have also signed the letter calling for the “abhorrent” tax raid, to be dropped.
Read the full article here:
How many farmers will be affected by the changes?
04:16
,
Athena Stavrou
According to the Treasury, some 27 per cent of estates claiming agricultural property relief (APR) were above the £1 million threshold in 2021/2022, suggesting that nearly three-quarters of farms would not fall within the scope of the charges.
The Treasury says around 500 estates a year are expected to pay inheritance tax under the changes.
However, the National Farmers’ Union (NFU) says farm businesses have also qualified separately for business property relief, which can cover things such as harvested grain and livestock, machinery and diversified businesses such as camping on a farmer’s field.
Now the two are combined, with a single £1 million allowance before inheritance tax is levied, which could mean more farms are in scope.
The NFU points to figures from the Environment Department (Defra) showing that 66 per cent of farm businesses in England have a net value of more than £1 million.
But the Government has countered that analysis, saying that looking at asset value alone does not necessarily mean the farm will be affected, as it depends on individual circumstances.
150,000 sign petition to maintain current farmers tax
03:01
,
Athena Stavrou
Monday’s tractor rally, organised by Save British Farming, comes as MPs debate an e-petition with more than 150,000 signatures calling to keep the current inheritance tax exemptions for working farms.
The petition has warned that the changes could “devastate farms nationwide, forcing families to sell land and assets just to stay on their property”.
Labour has insisted it will not make a U-turn on its plans to introduce a 20% inheritance tax rate on farms worth more than £1 million.
Watch: Nigel Farage calls for end to ‘death taxes’ in address to British farmers
01:59
,
Athena Stavrou
Labour defends migration plan after being accused of mimicking Reform
00:49
,
Athena Stavrou
Labour has defended its controversial migration plans after allegations the party is aping Nigel Farage’s Reform UK.
Home Office minister Dame Angela Eagle said the government is simply “enforcing the rules” by publishing videos of immigration raids targeting illegal workers.
The films have been criticised by human rights groups and MPs for being melodramatic, with the Refugee Council saying the government was using performative stunts to try to promote division.
Read the full story:
Labour backbenchers call for ‘meaningful tweaks’ to farm inheritance tax plan
Monday 10 February 2025 23:32
,
Athena Stavrou
Chancellor Rachel Reeves has faced calls for “meaningful tweaks” to planned inheritance tax on farmland from Labour MPs.
Sam Rushworth said that farmers who work a £5 million estate are “not millionaires”, while Julia Buckley said sector businesses currently face a choice to “go big or go bust”.
Conservative former Scottish secretary David Mundell warned that under plans to impose inheritance tax on agricultural property worth more than £1 million, farmers’ children will sell their land to private equity firms to cover the bill, and estates would instead be used for solar panels or industrial tree planting.
They made their comments during a debate about a House of Commons petition which called on Treasury ministers to carry on with a 100% relief from inheritance tax covering agricultural property.
Mr Rushworth told MPs: “If you inherit a £5 million farm, you’re not a millionaire, you’re the custodian of agricultural land with the responsibility to farm it to produce food for the nation.”
Why have the changes been brought in?
Monday 10 February 2025 22:36
,
Athena Stavrou
The Government has said “difficult decisions” had to be made to fill a £22 billion fiscal hole it inherited from the Conservatives, and it is targeting the agricultural inheritance tax relief to make it fairer.
It said figures showed that 7 per cent of the wealthiest estates account for 40 per cent of the total value of agricultural property relief, costing the Treasury £219 million.
'Write to your MP' - the aim of today's protest in the words of an organiser
Monday 10 February 2025 21:52
,
Athena Stavrou
Today’s tractor rally has been organised by Save British Farming and has seen hundreds of farmers arrive in Whitehall.
They want the Labour government to reverse its plan for changes in inheritance tax rules for farms.
We spoke to Liz Webster, founder of Save British Farming, a little earlier.
When we asked what the aim of today’s action was, she said: “Engage with the public and get them to contact their MPs and get them to put pressure on them for the government to change their mind on the aggressive anti-farming policies in the Budget, but also to make the right choices and get repair our relationship with Europe as 90 per cent of our agriculture exports go to the EU.”
She said she hoped to see a rethink of the inheritance tax policy in the Spring Budget.
'The farmers will win'
Monday 10 February 2025 21:22
,
Athena Stavrou
Reporter Barney Davis spoke to some of those who lined up their tractors along Whitehall for today’s protest.
One man, dressed in a fur hat and leather jacket, says the Labour government doesn’t care about anybody, particularly poor people.
He says policies introduced lack investment and create poverty.
Asked for his message today, he says: “If the farmers continue, they’ll win. They need the resolve to continue in the same manner, and they will win.”
Earlier, we heard from event organiser Liz Webster who said she hoped the continued action would bring ministers to the negotiation table on the policy to change inheritance tax rules.
Countryside Alliance say proposals 'hurts the whole country'
Monday 10 February 2025 21:02
,
Athena Stavrou
Mo Metcalf-Fisher, external affairs director for the Countryside Alliance said: “It is difficult to find a Government policy that has prompted such wide-spread concern than that of Rachel Reeves’s disastrous family farm tax.
“Farmers want to get on with producing food for us to eat while maintaining the countryside we all know and love.
“Instead they are having to fight to save their livelihoods.
“The total breakdown between Whitehall and the countryside hurts the whole country. We are in London today to urge Rachel Reeves to see sense and rethink her ruinous proposals before it’s too late”.
Pictures from today's protest
Monday 10 February 2025 20:29
,
Athena Stavrou
Watch: Farmers bring protest to London as they urge government to end 'death taxes'
Monday 10 February 2025 19:59
,
Athena Stavrou
Labour backbenchers call for ‘meaningful tweaks’ to farm inheritance tax plan
Monday 10 February 2025 19:23
,
Athena Stavrou
Chancellor Rachel Reeves has faced calls for “meaningful tweaks” to planned inheritance tax on farmland from Labour backbenchers.
Sam Rushworth said that farmers who work a £5 million estate are “not millionaires”, while Julia Buckley said sector businesses currently face a choice to “go big or go bust”.
Conservative former Scottish secretary David Mundell warned that under plans to impose inheritance tax on agricultural property worth more than £1 million, farmers’ children will sell their land to private equity firms to cover the bill, and estates would instead be used for solar panels or industrial tree planting.
They made their comments during a debate about a House of Commons petition which called on Treasury ministers to carry on with a 100% relief from inheritance tax covering agricultural property.
The Labour constituencies most unhappy about the ‘tractor tax’
Monday 10 February 2025 18:58
,
Athena Stavrou
The pressure is building on several Labour MPs to revolt against government plans to change rules on inheritance tax for farmers, analysis by The Independent can reveal.
On Monday, hundreds of protesting farmers blocked Whitehall before MPs entered Parliament to debate a petition calling for a U-turn on Rachel Reeves’ controversial proposal.
Analysis of the signatories of a petition, called ‘Don’t change inheritance tax relief for working farms’ and signed by 150,000 people, shows the Labour-held seats with the highest number of constituents signing it.
It comes as Save British Farming and the Countryside Alliance urge MPs to act on the issue or face losing their seat at the next election.
Read the full story:
Why do farmers say the changes are a problem?
Monday 10 February 2025 18:27
,
Athena Stavrou
According to the NFU, while farms may have a high nominal asset value – the value of their land and business assets – the returns from farming are often very low, so farming families may not have the reserves to pay for inheritance tax liabilities without selling off assets.
The NFU’s president Tom Bradshaw said the change had left elderly farmers in the “cruellest predicament”, as they may not live for another seven years to take advantage of exemptions for gifting assets, or to hand over assets in a way that qualifies for the gifting exemption.
He has also warned the changes could undermine investment as farmers will be wary of increasing the balance sheet as they will be liable to pay inheritance tax on it.
There are also concerns that it could affect tenant farmers if landowners no longer benefit from having a tax exemption for farmed land.
Mr Bradshaw said there was a feeling among farmers that the Government did not understand food production.