Wyke Farms MD Richard Clothier on challenges inheritance tax will have on farmers
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A third generation cheesemaker has warned that Rachel Reeves’s Budget could cost his 164-year-old dairy farm at least ￡500,000 a year. Richard Clothier, managing director of Wyke Farms in Somerset, has been forced to hike prices following the Chancellor’s tax-raising budget.
He described the October Budget, which included a ￡25bn National Insurance (NI) raid, as “quite a shock” and a “difficult challenge. This is on top of strong wage inflation and changes to agricultural property relief and business property relief announced at the Budget. The cheddar maker, the guardian of a secret cheese recipe created by his grandmother Ivy’s family back in 1861, said: "It's probably going to cost in the region of about an extra ￡500,000 a year.
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Richard Clothier on his dairy farm in Somerset (Image: Adam Gerrard/Daily Express)
He added: “We’ve got about 150 farmers that supply us from the region. They’ve all been impacted by the national insurance for the wage increases but also the inheritance tax at a time when their confidence was quite low anyway.
“Like national insurance, it was the unpredictability. The fact that it was something the government said it wasn’t probably going to happen and then it happened.
“It wasn’t as if people had any time to prepare for it. It’s been a massive shock to the industry. It’s undermined confidence for farmers at a time that we need to be prioritising food production.
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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 a U-turn.
Richard, who joked his father looked a lot less “cute” after the Budget, said: “I think everyone in the farming community is shocked by the changes and the speed of the changes and the fact there was no dialogue beforehand.
“My personal view is I don’t believe the Government’s modeling because I’ve got 150 farmers that I know personally and I can’t model it. They can’t model it because succession is something that’s very difficult to talk about in the farming community. You don’t say ‘what you doing to do when you die?’ It’s nothing any of us talk about and actually where it really hits farming families really hard is when there’s an unplanned event.
“They lose someone young unexpectedly and then it’s not prepared for and then the family are faced with the prospect of losing their home, losing their business and losing their father at the same time. And that’s where it becomes really, really tough.
“These things are really bad for morale.”
Experts talk about positives of biomethane and governmental challenges
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Richard, who said he does not back militant action, urged his customers to continue to support British producers.
He diversified his land to supply 5,000 local homes with green gas by converting manure into methane gas.
The dairy farmer, who exports produce to 164 countries, insisted there is huge untapped potential in natural waste.
He said: “We’re now largely energy independent. So we produce all of our own gas and electricity. We’ve seen the benefits of a more stable energy price which I think independence is really good for any manufacturing business
“It insulates businesses from those shocks. It’s been a great asset for us and also it’s fitted in with the overall sustainability plan of the business. We’ve always believed that a low-carbon business is a low-cost business. We’ve invested in long-term solutions for things like electrical energy, gas electricity, water and waste. This is part of that. The upfront cost can be quite high but actually the long-term gains are there forever.”
Richard said farmers need a clear view of the landscape ahead and urged the Government to have cross-party agreement on energy and food production.
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Wyke Farm's Bio Gas Sustainability centre near Bruton, Somerset (Image: Adam Gerrard / Daily Express)
He said: “When we talk about long term decisions in farming, we talk about generational decisions and I think that’s one of the things that upset farmers about the Budget.
“As a farmer, they’re thinking about their business for 20 or 30 years. The energy policy needs to span periods of Government. There needs to be cross-party agreement so farmers know that if there’s a change of government in four years time or whenever, these policies continue and carry on because it can take two or three years to build a plant like this and fully commission it anyways. It needs to run properly for 25 or 30 years afterwards. We do need that long term policy outlook so we can see things that are coming. It needs to be part of the UK food strategy. The UK food strategy should be a food and environmental strategy together. Anaerobic digestion has to form a part of that.”
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A Government spokeswoman 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.”
Wyke Farm's Anaerobic digestion plant (Image: Daily Express/Adam Gerrard)
Powered by poo: Farms converts manure into green gas which powers 5,000 local homes.
Wyke Farms converts manure into green gas which powers 5,000 local homes.
But consumers in the community would not even realise it because the cleaner power requires no changes at all.
James Earl, of membership body Future Energy Networks, said: “I call it a hidden hero because it’s decarbonising, in terms of capacity, around a million homes yet no one really seems to know about it. That is precisely because it does its job so well in that homes local to hear [Somerset] will have their heat supply decarbonised through biomethane and they don’t even know it because it’s identical to natural gas once it reaches the homes.
“Customers can heat their homes with a low carbon gas without making any changes whatsoever to their boiler to their properties.
Wyke Farms has an anaerobic digestion plant which powers itself and the local community with the help of Wales & West Utilities (WWU).
Up to a million homes in the UK currently use biomethane from around 110 plants.
Matt Hindle, head of net zero and sustainability at WWU, said: “Manure is put into digestion tanks where bacteria break it down and release biogas which is captured in the hoods of the tanks.
“That biogas can then be used across the energy needs of the farm - decarbonising their business - but also upgraded and injected into the gas network where it benefits anyone using gas by reducing emissions from their energy without needing to change anything around their boilers or the way that they use that gas today.
“Today, there’s enough capacity for gas injected into the network to meet the average demand of over 800,0000 homes across the UK. “
Only 2.5% of organic farm waste goes into biogas plants to generate power and gas.
Matt added: “It’s making a huge dent in carbon emissions without anyone using the energy noticing that difference. There’s massive potential for it to grow. We’ve got a farm here that’s using a lot of its waste materials but only 2.5% of farm waste material today is captured in a biogas process and producing renewable energy, producing gas that can go into the grid.
“There’s massive potential for that to grow. We can also use food waste collected from homes, sewage waste and crop material. So there’s huge potential for this to make a big dent in the natural gas that we use in the network today.
“We’re seeing green gas really grow in countries like France and Denmark. We have seen huge progress in the UK but there are barriers in terms of the ongoing support for new plants to connect.”
James added: “The potential of biomethane is absolutely massive. At the moment, we have enough capacity to heat nearly a million homes with biomethane. The potential is much greater than that.
“The challenge is recognition of that by government and getting a level of ambition behind growing the sector. That’s what we really want to see from government. Ambition put behind it and also a support scheme that matches that ambition as well.
A spokesman for the Department for Energy Security and Net Zero said: “Biomethane can play an increasingly important role in reducing our reliance on imported gas, increasing our country’s energy security and helping to meet our net zero goals.
“Ofgem already runs a scheme which provides tariff support for biomethane produced via anaerobic digestion so it can be added to the gas grid.
“We are looking at how we can further support the sector and will provide an update in due course.”