Farmers across the UK gathered in Westminster to protest inheritance tax changes.
- The National Federation of Builders supports the farmers’ stance against tax changes.
- Construction faces similar challenges with generational business impacts.
- The protest highlights broader economic concerns affecting multiple sectors.
- A call for government reevaluation to prevent negative impacts on businesses.
On 19th November 2024, thousands of farmers from various parts of the United Kingdom converged in Westminster. Their demonstration addressed grievances related to proposed modifications in inheritance tax and agricultural property relief. These tax changes could potentially hinder the growth and sustainability of their family-run farms. Such fiscal policies threaten to exacerbate existing financial strains within the agricultural sector.
The National Federation of Builders (NFB), through its chief executive Richard Beresford, has expressed solidarity with the farmers’ cause. Beresford noted that construction and agriculture share common challenges, including operating on tight margins and dealing with aging workforces. He remarked, “Construction companies are also generational businesses operating on tight margins, uncertain cashflow and aging workforces. We therefore stand behind farmers who oppose this budget decision because the growth-hindering, anti-business tax changes also apply to our industry.”
The construction sector, like agriculture, is particularly vulnerable to these tax changes. With many construction firms being family-run, there is growing concern over the potential closure of businesses, alterations in operational structures, or a reduction in business size. Beresford highlighted that such outcomes could lead to a decrease in directly employed workers, increased subcontracting, and added pressure on state pensions and public services.
There is an alarming trend towards a reduction in new learners and reskilling within construction as small and medium-sized enterprises (SMEs) are crucial to training apprentices. SMEs account for training eight out of ten apprentices in the construction industry. This decline could be detrimental to rural areas where local construction companies often serve as major employers. Beresford also emphasized that fewer businesses would be available to undertake essential infrastructure projects, including the building of public housing, necessary for meeting housing demands and contributing to carbon reduction goals.
Some in the construction industry are considering selling their businesses rather than passing them on. While selling ensures the business’s survival, it brings risks to workforce stability, expertise retention, and local investment continuity. Without local buyers, there is a threat of losing regional investors critical to community economic health. Beresford warned that unless there is a policy shift, the current government risks being perceived as responsible for the collapse of essential sectors that sustain the country’s food supply and infrastructure development.
A reconsideration of the proposed tax changes is imperative to safeguard both agricultural and construction sectors, vital to the nation’s economy.
