Farmer confronts Steve Reed over inheritance tax betrayal

2 days ago


A Kent farmer has confronted Defra secretary Steve Reed on live radio, accusing his government of abandoning family farms by rejecting a tax plan designed to protect farmers and raise more revenue.

On Nick Ferrari’s LBC show on 3 June, farmer David Catt accused Labour of ignoring farmers by rejecting an NFU and Country Land and Business Association inheritance tax (IHT) clawback plan that would protect family farms and potentially increase tax revenue for the Treasury.

See also: Labour’s farm inheritance tax ‘secrecy’ sparks anger

“You promised to listen to farmers,” Mr Catt told the minister. “So why reject a plan designed to protect family farms? Where’s the proof your policy will do better?”

But Mr Reed completely dodged the question.

He failed to explain why the Treasury dismissed the alternative clawback system, which offered full relief on farms at inheritance but imposed a 40% tax on assets sold within a set period after death, payable from sale proceeds. 

Instead, Mr Reed defended the government’s plan to impose a 20% IHT on agricultural assets valued more than £1m from April 2026.

He claimed only a minority of farmers would be affected and justified the changes by citing a £22bn public finance shortfall.

David Catt in vineyard

Kent fruit and veg farmer, David Catt © David Catt

‘Good deal’ for farmers – Reed

“Most farmers won’t pay this tax,” Mr Reed said, insisting that the policy is a “good deal” for farmers and offers them a better outcome than others who pay 40% IHT.

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He added: “Those that do, pay half the rate of other businesses and have 10 years to pay.”

But Mr Catt hit back, citing conflicting figures from the Treasury and Defra.

“Defra’s own data shows up to 70,000 farms could be hit,” he said. “This isn’t about investors; it punishes the families who farm the land.”

Reed ‘unaware of farm tragedy’

Mr Ferrari pressed Mr Reed on a tragic case revealed by a Sheffield coroner, where farmer Philip (John) Charlesworth took his own life on 29 October last year – the day before the IHT announcement in the Autumn Budget – fearing his family would lose half their farm under the new rules.

“Have you contacted the family?” Mr Ferrari asked.

Mr Reed admitted he hadn’t and said: “I didn’t know about this one.” He then added: “It’s dangerous to speculate why tragedies like this happen.”

Mr Ferrari told him: “Well, you’ve made it worse.”

Mr Reed acknowledged rising mental health challenges in farming and said the government has pledged to invest in mental health support hubs in rural communities.

No contact

However, the minister admitted he had not reached out to farming families affected by suicide.

“We are proud of our farmers,” Mr Reed said, pointing to a £5bn government investment over two years in sustainable farming practices.

He also highlighted efforts to boost farm profitability, including drafting in former NFU president Minette Batters to lead a review.

But Mr Catt warned bluntly: “There is no food policy… British farmers are being squeezed to the brink.”

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