Northumberland farmers picket conference to protest Government's 'devastating' changes to industry

There were protests outside the Northern Farming Conference, held at Hexham Auction Mart, on Wednesday amid controversy around changes to various taxes and payments.

While many farmers in Northumberland are tenant farmers and therefore are not as impacted by inheritance tax changes, there was anger about increased taxes on fertiliser and farm vehicles.

Changes in the budget mean double-cab pick-ups – often used by farmers and gamekeepers – will no longer be treated as “commercial vehicles” but as cars – meaning tax burdens could increase by as much as 211% according to figures from the Countryside Alliance.

A new carbon tax on fertiliser could increase costs by £50 per ton, while Defra has also announced that the de-linked Basic Payment Scheme (BPS) will be phased out much more rapidly than previously anticipated. According to Farmers Weekly, a farmer who received more than £100,000 in BPS in 2024 will receive no more than £8,000 in 2025.

Among the protesters was Pip Robson, whose family have farmed land owned by the Duke of Northumberland near Beadnell since 1775.

He said: “This Government has got to get it in their heads that there’s no reason to have a go at agriculture. We’ve already had a bad season.

“We need to make our voices heard. The Government talk about food security, and they have just devastated it.

“There is a new fertiliser tax, they have changed the rules around double-cab pick-ups. They need to rethink the whole budget – it is just bad, bad, bad.

“They have also cut off BPS payments – farming is an 18 month or two year cycle, you can’t just change your budget.

“The knock-on effect for the rural economy is devastating.”

Cllr Mark Mather, who is a tenant farmer and represents the Wooler ward for the Conservative Party on Northumberland County Council, was also present.

He said: “As a tenant farmer, the inheritance tax doesn’t directly affect me.

“However, this budget is an attack on the rural economy because of the tax on fertiliser and the reduction in payments. We have just had one of the worst harvest on record, we financially can’t continue like this.

“My concern as a councillor is everyday people aren’t going to be able to afford the high-quality, high-welfare food we are proud to produce and will have to buy sub-standard food that has been imported.

“That has huge health impacts. People’s life expectancy could be reduced, that’s how serious it is.

“Personally, I just feel so upset that we don’t have a Government that is going to listen. There will be a huge knock-on impact on things like vets, machinery sellers and even the local pubs – if farmers have pounds in their pockets, they spend it.”

The Government has also come under fire for changing the rules around agricultural property relief when it comes to inheritance tax. While the Government say it is “committed to supporting farmers and rural communities” and “helping families to pass their land on to the next generation” the sector has warned that farms will become smaller and smaller as a result of the changes.

From April 2026, inherited agricultural assets worth more than £1m, which were previously exempt, will have to pay inheritance tax at 20%. Conservative councillor Guy Renner Thompson branded the move a “massive broken promise”.

Fellow Tory councillor John Riddle, who is also a farmer, added: “My father fought through the war and managed to buy a farm he passed down to me. I would hope to be able to pass it on myself.

“They’re doing away with the little benefits we had. I just think these are real taxes against the rural economy.”

Defending the policies, a Government spokesman said: “The Government’s commitment to our farmers remains steadfast. It’s why we have committed £5 billion to the farming budget over two years – more money than ever for sustainable food production.

“We understand concerns about changes to Agricultural Property Relief but the majority of those claiming relief will not be affected by these changes. They will be able to pass the family farm down to their children just as previous generations have always done.

“This is a fair and balanced approach that protects the family farm while also fixing the public services that we all rely on. We remain committed to working with the NFU and listening to farmers.”

The Government has also pointed out that a farm owned by two people will be able to pass on land and property valued at up to £3 million to a child or grandchild tax-free. This is made up of £1 million, where they combine their standard £500,000 tax-free allowances, and on top of that, an additional £1 million tax-free allowance each for agricultural property inheritance.

It is also claimed that “most estates” will not be affected by the changes. The Government say reforms to agricultural property relief are expected to affect the wealthiest 500 estates each year with smaller farms not affected by the changes.

Speaking on the BBC’s Farming Today, Secretary of State for Environment, Food and Rural Affairs Steve Reed said he understood the “anxiety” felt by farmers around the changes, but added that almost three quarters of claimants “would pay nothing” and that these farms would pass “without inheritance tax liability”.