Chancellor Rachel Reeves delivered a Budget with significant announcements on inheritance tax, granting a full exemption for victims of the Infected Blood scandal while simultaneously facing fierce protests from farmers over planned changes to agricultural taxation.
Key Budget Announcements
During her speech to the House of Commons on Wednesday, Chancellor Rachel Reeves confirmed that all payments from the Infected Blood scheme will be completely exempt from inheritance tax. This move ensures that compensation reaches families without being diminished by tax liabilities, regardless of how the payments are passed to children.
The Chancellor framed this decision as part of a broader principle, stating: “I will not allow the legacies of Conservative neglect to stain our society.” She emphasised that taxpayer money should address injustices rather than fund waste.
In a separate pension-related announcement, Reeves committed to transferring the Investment Reserve Fund of the British Coal Staff Superannuation Scheme to its members. This follows similar action taken last year for the Mineworkers’ Pension Scheme and is designed to provide a fairer retirement deal for those who worked in supporting roles within the coal industry.
Farmer Protests Erupt in Westminster
The Budget day was marked by significant disruption as farmers brought more than a dozen tractors to Westminster, defying a Metropolitan Police ban on agricultural machinery in the area. The protest, which caused rush-hour traffic standstills, was a direct response to the government's proposal to introduce a 20% inheritance tax on farm businesses and land worth over £1 million.
David Gunn, an arable farmer from Kent, explained the protesters' desperation: “Inheritance tax is one reason, it’s going to cripple the farmers, the small family farmers... we don’t make any money.” He accused the government of reneging on its manifesto pledge to support the agricultural sector.
Eighteen-year-old Tyler Carter from Peterborough held a sign reading “Dear London sorry … I’m here to fight for my future!” He expressed fear that the tax reforms would mean his father, and consequently himself, would be put out of work.
Political Context and Police Response
Wednesday's demonstration follows a larger protest in December, where thousands of farmers gathered to voice their opposition to the same inheritance tax plans. The Metropolitan Police had attempted to pre-empt the disruption by imposing conditions to prevent agricultural vehicles from entering Whitehall, citing concerns about “serious disruption” to businesses and emergency services.
Despite these measures, protesters successfully parked tractors outside Parliament, with police officers observed monitoring the situation. The deep-seated anger within the farming community presents a significant political challenge for the government, with farmers linking the tax changes to broader issues of food security and the viability of family-run agricultural businesses.
