Farmers protest against 'attack on rural economy'

Farmers have been protesting about changes to inheritance tax relief, which they say represents "an attack on the rural economy".

A group of about 50 from north-east England and Cumbria gathered outside the Northern Farming Conference at Hexham, Northumberland, attended by Rural Affairs Minister Daniel Zeichner.

Andrew Moralee, who farms in Willington, County Durham, said: "I'm here because I'd like to hand the land to my son but these changes will make that very hard."

Chancellor Rachel Reeves has defended her reforms by claiming it is not "affordable" to keep the current system.

Under plans announced in the Budget, inheritance tax will be charged at 20% on agricultural assets above £1m, although Reeves has said in some cases the threshold could in practice be about £3m.

Mr Moralee farms 500 acres at Lowfield Farm with his father and son Jack.

"This inheritance tax change is going to be a real issue for us, it'll mean young people leave the industry," he said.

"We're buying poor quality beef from abroad while our farmers lose hope."

Simon Bainbridge, who farms at Cambo, Northumberland, was attending the conference and hoped to question the minister.

"I want to tell him how farmers are feeling on the back of two miserable harvests," he said.

"Financial support for farms is being reduced more quickly than we thought, it feels like an attack on all sides for everybody is the rural community."

Iain Brown, who farms in North Northumberland said the government had "no concept" of how hard farmers worked for "so little".

"We’ve got mortgages to pay, and are working flat out, and we are told it’s the wealthy landowners that can afford to pay more."

The government said the majority of family farms would still be able to be inherited tax-free, with only the country’s 500 richest estates likely to pay more.

In his speech, Zeichner told the conference the government farming budget of £500m for the next two years represented "record" spending on agriculture.

He added taxes raised would be spent on services benefitting the countryside, such as tackling rural crime and improving health services in rural areas.

Mark Mather, a tenant farmer and Conservative councillor for Wooler, Northumberland, added: "These changes will leave the poorest buying sub-standard food that's come half way across the world."

Liberal Democrat environment spokesman Tim Farron, who is MP for the rural Cumbrian seat of Westmorland and Lonsdale, said the inheritance tax changes would break up family farms.

He said: "The majority of people this will hit run what we would refer to as small family farms - huge acreage, with value in the farm buildings, but tiny incomes.

"In the last five years hill farm incomes have dropped by 41%, so we are not talking about wealthy people."

Reeves used her first Budget to announce a change to agricultural property relief (APR) and business property relief (BPR) from April 2026.

Budget documents state the government wants to restrict the "generosity" of APR and BPR for the "wealthiest estates".

She said "only a very small number of agricultural properties" will be affected and "difficult decisions" were needed in order to fix public services and place the economy on a firmer footing.

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