'Farm inheritance tax will devastate us'

About 100 tractors have taken to a city's streets to protest the government's proposed changes to inheritance tax.

Farmers have caused congestion in Oxford city centre, with some seen holding banners saying "Ditch the Family Farm Tax" and "Fight the Tax".

Measures announced by Rachel Reeves in October's Budget included applying inheritance tax to agricultural assets worth more than £1m for the first time.

The protest came as Environment Secretary Steve Reed told the annual Oxford Farming Conference that the changes were "very unwelcome".

"It wasn't something we intended or wanted to do before we saw the state of the public finances, and of course, I regret that, but we tried to make it a little easier," he told farmers.

As Mr Reed addressed the conference, the tractors outside continuously honked their horns in protest - which could be heard inside the venue.

Speaking at the protest, farmer Jonathan Smith told the BBC that the inheritance tax plan would "devastate family farms".

"They just wont be able to continue farming, and if they don't then the whole country will have a problem with food supply," he said.

His wife Heidi added that the changes would "affect a vast number of farmers".

"It's going to be particularly difficult for farmers in high-value land areas, such as Oxfordshire.

"Our children when we pass the farm on will not be able to pay the inheritance tax whilst keeping the farm intact," she said.

Under the proposals, farmers would have ten years to pay 20% tax on inherited agricultural assets worth more than £1m from April 2026.

The government has said it wants to make the system fairer and discourage wealthy people from investing in land solely to avoid the tax.

Talking to the BBC ahead of his speech, Steve Reed said the changes were a "difficult decision" that the government "had to make because of the appalling financial inheritance" it received from the previous government.

He said his priority now was "putting money straight into the pockets" of farmers.

"We want to see farmers make a much better profit for all the hard work they put in to feed us, so were going to the use the power of the public purse to back British," he added.

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