Labour’s 2024 budget has brought sweeping changes to the financial landscape, but few policies are as damaging—or as poorly conceived—as those impacting our rural communities. For Norfolk’s farmers, this budget represents a direct challenge to their way of life, placing increased tax burdens on family-run farms and introducing barriers that threaten to undermine generations of hard work.
Agriculture is more than just an industry in Norfolk—it’s a tradition and a backbone of our community. Norfolk Conservatives are steadfast in our commitment to standing with local farmers, preserving our agricultural heritage, and defending the interests of rural Norfolk against short-sighted policies that endanger its future.
Impact of Labour’s Inheritance Tax Changes on Farmers
The farming sector is unique. Family farms often span multiple generations, passed down to keep local traditions and values alive. However, Labour’s budget has altered key tax thresholds that were previously designed to protect family farms.
In the October 2024 budget, Chancellor Rachel Reeves announced a 20% inheritance tax on agricultural and business assets exceeding £1 million, effective from April 2026. This policy marks a departure from the previous 100% relief on such assets, aiming to generate £520 million annually by 2029. However, the National Farmers' Union (NFU) estimates that 75% of commercial family farms surpass this threshold, potentially forcing many to sell land to cover tax liabilities.
This policy, while framed by Labour as a “fairer” approach to taxation, lacks understanding of the unique role farms play in Norfolk’s rural economy and community. Farmland isn’t merely an asset, and by imposing these new liabilities, Labour is stripping away Norfolk’s agricultural future, one farm at a time.
Threats to Local Food Security and Environmental Stewardship
Our Norfolk farmers don’t just support local economies—they play a critical role in the country’s food security and environmental conservation. The very farms that are now under financial pressure provide fresh, local produce, reduce our reliance on imported goods, and care for Norfolk’s landscapes. By disregarding these contributions, Labour’s budget risks undermining both local food security and environmental goals.
Policies that fail to support farmers not only impact food prices but also threaten the quality and availability of locally produced goods. A farm forced to sell its land due to tax burdens often finds that land repurposed for non-agricultural development, resulting in a loss of farmland that is rarely reversible.
Farmers’ Response: Protests in Westminster
The farming community's frustration culminated in a significant protest on November 19, 2024, where approximately 13,000 farmers and supporters gathered in Westminster. The demonstration, featuring speeches and a procession of tractors, highlighted the deep concerns over the inheritance tax changes. Prominent figures, including NFU President Tom Bradshaw and television presenter Jeremy Clarkson, addressed the crowd, emphasising the policy's potential to devastate family-run farms and calling for its reversal.
Norfolk Conservatives: Advocating for Farmers
Norfolk Conservatives recognise the critical role that agriculture plays in our local economy and heritage. We are committed to supporting our farmers through various initiatives:
- County Farms Estate: Norfolk County Council manages a County Farms Estate encompassing over 16,795 acres, let to 136 tenants, including 95 farm tenants. This estate provides a vital entry point for new farmers and supports the local agricultural economy.
Norfolk County Council - Agri-Tech Innovation Funding: In partnership with Innovate UK and regional entities, Norfolk County Council has launched a £7.5 million fund to promote innovation in the agri-tech and food technology sectors. This initiative aims to enhance productivity and sustainability within the agricultural industry.
Norfolk County Council - Local Nature Recovery Strategy: The council is developing a strategy to assist farmers in identifying opportunities for nature recovery actions, facilitating access to Environmental Land Management schemes, and promoting sustainable farming practices.
Norfolk County Council
Supporting Norfolk’s Farmers
Labour’s budget may place unnecessary hurdles before our farmers, but Norfolk Conservatives will continue to be the voice that defends their interests, promotes local food security, and protects the heritage of rural Norfolk. We remain steadfast in our commitment to standing against measures that harm our farmers and to promoting a thriving and resilient agricultural sector.
Further, we believe in ensuring broader national food security over losing prime farm land to solar farms. Read Kay Mason Billig’s - Conservative leader for Norfolk County Council’s - statement on the impact of solar blight across our region.
