Farm tax is risk to UK food security, says former foreign secretary

Rachel Reeves’ inheritance tax hike on farms is a risk to UK food security, James Cleverly has said.

The former foreign secretary told reporters at a press conference at the National Liberal Club in Whitehall he feared the Government had not considered a scenario of “moderate disruption” to food supplies, despite warning signs during the Russian-Ukraine war.

Braintree MP Mr Cleverly spoke after farmers parked two vintage tractors outside the National Liberal Club on Tuesday as part of a protest by Save British Farming against the tax changes.

“I do worry that this Government is really blase about food and farming, because it cannot envisage a circumstance where there is even a moderate disruption of UK accessibility to core foods, particularly carbohydrates,” Mr Cleverly said.

“If they’re right, well, I’m not sure I still agree with driving farms out of business. If they’re wrong, the stakes are so high it is unconscionable.”

The UK is facing “serious risks” to its food security as a result of long-term declines in the natural environment and worsening climate change, according to the latest three-yearly government report on the matter published in December.

The Department for Environment, Food & Rural Affairs (Defra) report also noted how geopolitical tensions have impacted the country, with the Russian invasion of Ukraine leaving the UK facing the highest food inflation in the G7, although “sustained” food item shortages were avoided.

Farmers have argued that Rachel Reeves’ inheritance tax hike on agricultural properties worth more than £1 million would undermine national food security in a critical moment.

Speaking to reporters, Mr Cleverly argued policymakers should treat agriculture with the same respect as they do the automotive industry and technology companies and called the Chancellor’s measures “one of the most stupid and counterproductive proposals I have ever seen”.

“One of the problems we’ve had for a number of decades is we’ve stopped being scared about things that we should be scared of.

“Because we haven’t had food shortages in the UK in living memory, we’ve kind of convinced ourselves that that can never happen.

“I​​ don’t think it will happen. I don’t think it’s necessarily likely to happen, but it’s not something that is helpful to think of as being impossible.

“We had a nasty food inflation spike when Ukrainian grain exports were disrupted, even temporarily.”

Mr Cleverly warned in such a scenario, “voters will go hungry, and then they’ll get angry, and then they will turn on the government”.

He added: “It will be politically catastrophic for the Labour Party. That’s the kind of thing that gets you kicked out of government, not just for one or two political cycles, but potentially permanently.

“The biggest falls come after the biggest victories,” he said, noting how the Conservative’s major losses last year followed the successes the party had in 2019.

A Defra spokesperson said: “Our commitment to farmers remains steadfast.

“This Government are investing £5 billion into farming, the largest budget for sustainable food production in our country’s history.

“Our reform to Agricultural and Business Property Reliefs will mean three quarters of estates will continue to pay no inheritance tax at all, while the remaining quarter will pay half the inheritance tax that most people pay, and payments can be spread over 10 years, interest-free. This is a fair and balanced approach which helps fix the public services we all rely on.”