News in brief: December 2024

The news agenda for landowners was dominated by the surprise announcement regarding inheritance tax in the autumn budget and the subsequent reaction.

The proposal to enforce an effective tax rate of 20% on agricultural assets worth more than £1m from April 2026 led to widespread condemnation, with farmers gathering in London on 19 November to protest the change that many believe will spell the end for many family farms.

Prime Minister in 'listening mode'

Estimates for the number of farmers who took to Whitehall to protest about the government’s changes to inheritance tax ranged from 10,000 to 45,000. Their point was made in emphatic fashion, but the wait to see how the government will respond goes on. The week following the protests the NFU met privately with Sir Keir Starmer at Number 10 to raise concerns regarding the controversial changes. Following the meeting, NFU President Tom Bradshaw said: “I welcome the Prime Minister asking to hear directly about farmers’ concerns, and I am grateful to him for taking the time to do so. I hope we can work together towards a resolution on this issue.” Carter Jonas Partner, Mark Charter, said: “Starting the conversation about succession is often one of the hardest steps, and the changes announced in the budget have certainly brought the importance of planning into sharp focus,” says Carter Jonas Partner Mark Charter. “We are seeing clients taking the initiative and looking at the right plan for their business. That will include gifting, putting assets into trusts, and other succession options, but these are big decisions and not something to be rushed into unless there are over-riding health or age concerns.”

Public support for farmers

Since the mass rally, farmers have returned to London twice to continue their demonstrations – once in tractors, and once to convene with other industries affected by the tax policy shift. Sentiment around direct action – strikes and blockades in particular – remains mixed. More than half the public would support farmers if they decided to strike, according to a new poll. The research conducted by Ipsos revealed that 55% of respondents would support farmers striking, mirroring the level of support the public believe nurses and ambulance workers should receive if they chose to strike. “This is underpinned by a clear sense that farmers are being unfairly treated by the British government – only pensioners (themselves a source of public concern over the removal of the universal winter fuel allowance) are more likely to be seen as getting a bad deal,” says Gideon Skinner, Senior Director of UK Politics at Ipsos.

Defra closes capital grants due to demand

The government has confirmed it will temporarily close new applications to capital grants following ‘unprecedented demand’. The grants, which are designed to help farmers meet environmental standards and work more efficiently, will be removed "so that funding can be prioritised to where it is most needed". Grants to temporarily close include those for silage clamps, slurry stores, dry stone walls, fencing and new hedges. “To ensure the funding can be prioritised to help build a sustainable farming sector, we’re simplifying and rationalising grant funding,” an online Defra blog explained. “Part of the overall capital grant offer has temporarily closed to most new applications. A further update on this will be shared in early 2025.”

Bird flu cases continue to rise

There were 14 confirmed cases of avian influenza in December as the government has raised the avian influenza risk level in kept poultry to ‘medium, with low uncertainty’, prompting calls for farmers to tighten biosecurity protocols. With migratory bird patterns expected to heighten the risk of AI cases this winter, farms must ensure their biosecurity measures are robust and strictly followed. Julian Sparrey, Group Technical Director at Livetec Systems, says: “We’ve seen increased outbreaks in the UK directly correlate with particularly cold winters in Eastern Europe, as more wild birds travel west. But with a case of the H5N5 variant in Yorkshire and the H5N1 variant in Cornwall, it’s important to stay alert wherever you are in the country.” 

New agri-tech strategy necessary

A refreshed government agri-tech strategy is necessary to unlock the potential of agriculture and horticulture, new analysis concludes. In its ‘Back to the Future’ report Agri-TechE outlines its belief that a new government report is necessary to guide the industry in the next decade and update the previous guidance. “The 2013 strategy engendered a lot of fresh thinking, energy, external investment and innovation in the agricultural and horticultural sectors,” says Dr Belinda Clarke, Agri-TechE director. “But the sector is now in a very different place and needs new government focus to shape the future of agri-tech to enable it to help the sector meet new priorities.”

Clock ticking on Class Q planning changes

Rural property owners considering an application to convert a building into a dwelling under Class Q permitted development rights should be aware of changes which could affect the size of the house they are able to build.

One of the major changes under the Town and Country Planning Order 2024 concerns the ‘larger’ and ‘smaller’ dwellinghouse criteria, currently relating to applications for property over or under 100sqm.

This will be removed in 2025 and a single limit of 150sqm per dwelling applied unilaterally.

Currently a single dwelling could be up to 465sqm – considerably more than the new limit.

Transitional arrangements are only available until 20 May 2025 when the new rules will come into force.

There are several other changes being applied, but most are beneficial such as extending the number of houses able to be created from five to 10.