Rachel Reeves under fire for October's Budget (Image: PA)
Labour has been slammed for its “reckless” handling of the farming sector following Rachel Reeves’s tax raid. Two former Conservative ministers who were in charge of farming policy criticised Labour, including over the closure of the sustainable farming incentive (SFI) to new applications.
Conservative peer Baroness Coffey, who was in charge of farming policy during Rishi Sunak’s government, pointed to none of Labour’s environment front bench representing rural constituencies. Lady Coffey said: “It is worth noting that all the Commons ministers represent urban areas, and that’s why I feel there’s been a lack of consideration and true understanding of some of the impact of recent decisions that have been made on both the farming community, and rural communities too.
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“There’s often an assumption that somehow rural communities are wealthy. It’s simply not the case.”
Baroness Shepherd of Northwold, who was agriculture secretary under John Major, said the Government had been careless. The Conservative peer said: “The Labour manifesto promised to champion British farming.
“Instead from the farmers’ point of view, and from rural communities, they seem to have launched a series of crippling blows on farming. Starting with the changes in inheritance tax for farmers.
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“That is going to cripple British farming and prevent investment and growth in rural communities.”
She added: “It is right that the Government be held to account for the seemingly reckless way in which they are dealing with the farming industry.”
Tory Lord Harlech, meanwhile, said the policies would tax farmers into “oblivion”.
His Conservative colleague Lord Grayling said the proposals risked forcing several competing demands into rural areas.
There are fears the Government’s plans to build 1.5 million homes will also involve agricultural land.
Conservative shadow environment minister Lord Roborough said: “The list of negative spending and taxation decisions by this Government on farming and rural communities is long. The cumulative impact is devastating on the financial and mental wellbeing of farmers in particular, but also the wider rural community.
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“The reduction in inheritance tax reliefs under agricultural property relief and business property relief remain a hugely emotive and damaging subject. We remain puzzled why this was necessary, given the Treasury only expects to raise ￡500 million per annum.”
He added: “As Government ministers have themselves conceded, a small cohort of currently elderly farmers, suffers of serious illness, or victims of mortal accidents will be caught by this capricious decision.”
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Backbench Labour peer Lord Davies of Brixton, who said his grandfather was a farmer, said: “It’s important that Government policies recognise the cultural significance of farming and agriculture.
“But in general what we need are economic and planning decisions that support farming practices that deliver benefits for food production, for biodiversity, and climate resilience, while at the same time maintaining the countryside that we all know and love.
The Chancellor in October announced that from April 2026, combined agricultural and business property assets up to ￡1 million will still receive 100% relief but anything above that will be taxed at an effective rate of 20%.
The Daily Express’s Save Britain’s Family Farms crusade has demanded she U-turns on her decision.
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A government spokesman said: “Our commitment to farmers remains steadfast.
“This Government will invest ￡5 billion into farming over the next two years, the largest budget for sustainable food production in our country’s history. We are going further with reforms to boost profits for farmers by backing British produce and reforming planning rules on farms to support food production.
“Our reform to Agricultural and Business Property Reliefs will mean farmers will pay a reduced inheritance tax rate of 20%, rather than the standard 40% for other businesses, and payments can be spread over 10 years, interest-free. This is a fair and balanced approach, which fixes the public services we all rely on, affecting around 500 estates a year.”