'It's another kick in the teeth': Farmers' fury over inheritance tax changes

Watch ITV Granada's Political Correspondent Líse McNally report from the protest

The organiser of a mass rally in protest of changes to agricultural inheritance tax claims several farmers have already taken their own lives following recent challenges to the sector.

Tens of thousands of farmers attended a protest in London calling on the government to scrap changes which would see farmers pay 20% inheritance tax on farms worth more than £1 million.

The government insists the tax will not affect the majority of farmers but Olly Harrison from the National Farmers' Union, and an organiser of the rally, says it is a 'betrayal' that is already having a cataclysmic impact on farmers.

"We have already heard of several farmers taking their own lives", the Merseyside farmer said. "What other tax incentivises you to not be alive?"

Despite Harrison's prominence in the farming world, he said he would consider leaving the industry entirely if the government's inheritance tax plans go ahead.

"I can’t be bothered anymore. I’ve had enough," he said. "The weather’s bad. We’ve lost money for the last four years out of five. We have just had the worst harvest ever. This is just an absolute kick in the teeth."

The 43-year-old father, who was one of five people who organised the rally in Whitehall, spoke in front of an estimated 13,000 people on Tuesday, 19 November, many of which were farmers.

The peaceful protest was held alongside a mass lobby of MPs by members of the National Farmers’ Union (NFU).

Farmers have reacted with anger and dismay to the inheritance tax changes for farming businesses, which limit the existing 100% relief for farms to only the first £1 million of combined agricultural and business property.

Olly Harrison organised the farmers rally in London, and fears for the welfare of farmers after the changes in inheritance tax.

But ministers have said farmers are “wrong” to think that thousands of farm businesses will be affected by the changes, insisting only around 500 of the wealthiest estates will have to pay tax under the move.

Some farmers, including Cheshire dairy farmer Richard Shephard, warn they will have to sell off land to meet the rise in tax costs.

He said: "The impact on farming is going to be immense. It's going to decimate the industry. They say it's only going to affect 27% of farms.

"We're classed as a small family farm. We're going to have an enormous tax bill and we're not physically going to be able to afford to pay it.

"The only way we can actually afford to pay it, is if we start selling land. If we start selling land, we're not going to be able to carry on farming profitably in any way, shape of form in the future.

"Quite frankly, the government needs to reverse this ridiculous tax they're going to bring in to farming. Otherwise it's going to obliterate farming in this country."

Steve Reed, Secretary of State for Environment, Food and Rural Affairs, insists only a few hundred of the wealthiest estates would be impacted.

“The Government’s been very clear: about 500 farms will be affected and the vast majority of farms will pay nothing more under the new scheme,” he said.

“That figure has been validated now by the independent Office for Budget Responsibility and by the independent financial think tank the IFS. There are all sorts of other figures flying around that I don’t recognise."

He dismissed opposition accusations that Labour does not understand the countryside, citing the announcement of £5 billion in the Budget to support sustainable food production in the UK.

“That’s the biggest budget of that kind in our country’s history and it shows that we’re backing farmers,” Mr Reed said.

“We’ve gone further than that as well, £60 million to help farmers affected by flooding, we’re going to cut farmers’ energy bills by setting up GB Energy, we’re going to seek a new trade deal with the European Union so we can get food exports moving across the border again and we’re launching the first-ever cross-government rural crime strategy.”

Steve Reed is the Secretary of State for Environment, Food and Rural Affairs and has defended the government's inheritance tax plans.

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