Friday, January 10, 2025

New Government pledge promises help for farmers – but there’s no u-turn on inheritance tax changes

Secretary of State for Environment, Food and Rural Affairs Steve Reed has set out the Government’s long-term vision to make farming more profitable and put more money back in the pockets of British farmers.

Speaking to farmers and landowners at the Oxford Farming Conference, Steve Reed says the Government wants to work with farmers to deliver a profitable farming sector and unlock rural growth. This will include a cast iron commitment to food security while introducing reforms to help farmers diversify their income streams to support them during poor harvests.

As part of the Plan for Change, the Secretary of State announced a series of reforms (with no reference to changes to inheritance tax), including:

  • Backing British produce: For the first time ever, the Government will monitor food currently bought in the public sector and where it is bought from. This is a significant first step to deliver on a manifesto pledge and make it easier for British farmers to win a share of the £5 billion spent each year on public sector catering contracts.
  • Using planning reforms to support food production: Ensuring our reforms make it quicker for farmers to build the buildings, barns and other infrastructure they need on their farms to boost food production.
  • Diversifying income streams: Helping farmers make additional money from selling surplus energy from solar panels and wind turbines by accelerating connections to the grid and support them during difficult harvests and supply shocks.
  • A fair supply chain: Boosting profitability through fair competition across the supply chain. New rules for the pig sector will come this spring, ensuring contracts clearly set out expectations and changes can only be made if agreed by all parties. Similar regulations for eggs and fresh produce sectors will follow with the government ready to intervene with other sectors if needed.
  • Protecting farmers in trade deals: The government will uphold and protect our high environmental and animal welfare standards in future trade deals.

He said: “The primary purpose of farming has – and always will be – to produce the food that feeds the nation. Too many policymakers in Whitehall lose sight of that fact. This Government is putting food production firmly back on the agenda.”

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