Chancellor of the Exchequer Rachel Reeves and Secretary of State for Environment, Food and Rural Affairs, Steve Reed are refusing to give ground following the budget.
With thousands of farmers about to march on Westminster they issued a joint statement reiterating the Government’s commitment to the industry.
The statement reads: “Farmers are the backbone of Britain, and we recognise the strength of feeling expressed by farming and rural communities in recent weeks. We are steadfast in our commitment to Britain’s farming industry because food security is national security.
“It’s why we are investing £5 billion into farming over the next two years – the largest amount ever directed towards sustainable food production, rural economic growth and nature’s recovery in our country’s history.
“But with public services crumbling and a £22 billion fiscal hole that this Government inherited, we have taken difficult decisions.
“The reforms to Agricultural Property Relief ensure that wealthier estates and the most valuable farms pay their fair share to invest in our schools and health services that farmers and families in rural communities rely on.”
It suggests that the government expects to stand firm against growing pressure from the farming industry, and its political opponents.
CLA responds
In response to the statement, Country Land and Business Association (CLA) President Victoria Vyvyan said: “The government claims to back farmers but their words seem hollow against a backdrop of tax rises, a cut in real terms to the agriculture budget and a speeding up of the end of direct payments.
“Failure to increase the budget will leave farmers unable to deliver on food security or the government’s environmental commitments. It will hit sustainable food production and undermine improvements to wildlife habitats, flood management and access to nature.
“Ministers are still saying that capping vital inheritance tax reliefs only affects the wealthiest, but the Chancellor’s tax grab may endanger as many as 70,000 farms – from the average family farm up to our biggest food producers.
“If just 5% of rural businesses fail, it could lead to tens of thousands of job losses in the rural economy. So much for a government that claims to have economic growth at its heart.”
Steve Reed is expected to give a keynote address at a CLA conference in Westminster on Thursday, just two days after the demonstrations.
Tom Bradshaw to address farmers at demonstration
At the NFU organised demonstration today, Tom Bradshaw will address members in attendance, speaking on behalf of all farming unions – the presidents of which will also be there.
He is expected to acknowledge the difficult circumstances that have caused the demonstration: “You don’t need me to tell you farmers and growers put up with a lot, but it takes something extraordinary to get us to react like this and this betrayal on APR/BPR is extraordinary, and it affects farmers from every corner of Britain, many of whom are here today or joining us for later sessions.”
The speech will state that the changes to APR and BPR were built around bad data and launched with no consultation, and that the aim of the demonstration is to work with MPs.
Mr Bradshaw will also accuse Labour of going back on promises made during its election campaign.
“And let us remember that they promised not to do this when they were wooing the rural vote. It’s not only been bungled in delivery, it’s also nothing short of a stab in the back.
“But we in this room also know that APR & BPR is the straw which broke the camel’s back for farming. After years of changing policy and 18 months of some of the worst weather on record, the budget has been a kick in the teeth. It is full of let-downs for our vital sector: accelerated BPS reductions, double cab pick-up taxes, new taxes on fertilisers. The list goes on.”
