In a bid to rebuild ties with farmers following a backlash over inheritance tax changes, Environment Secretary Steve Reed has announced the extension of the seasonal farm worker scheme for another five years. Reed will unveil the extension at the National Farmers’ Union (NFU) conference in central London on Tuesday, alongside the opening of a new national biosecurity center to address agricultural diseases such as foot-and-mouth and bluetongue.
The announcement follows a wave of anger from the farming community after the government’s unexpected changes to inheritance tax rules, which were revealed in Rachel Reeves’ spring budget. Farmers expressed concerns that the alterations could threaten their family-run businesses, while some tax experts criticized the proposals, arguing they were poorly planned. However, others have pointed out that there are loopholes in the current system that need to be addressed.
Reed has been working to mend relationships with the farming sector, and his speech will emphasize that improving farm profitability is his top priority. He is expected to say, “The underlying problem is that farmers do not make enough money for the hard work and commitment they put in. I will consider my time as secretary of state a failure if I do not improve profitability for farmers across the country.”
“My focus is on ensuring farming becomes more profitable because that’s how we make your businesses viable for the future. And that’s how we ensure the long-term food security this country needs,” Reed will add.
At the NFU conference, Reed’s predecessor, Thérèse Coffey, faced a frosty reception in 2023, with some farmers even booing her as she addressed their concerns. This year, the CBI chair, Rain Newton-Smith, will address the government’s recent inheritance tax changes, stating, “You’ve been battling so many challenges… most recently, changes to inheritance tax and business property relief at the budget, which the NFU has said could affect 75% of farms. Some see those solely as personal taxes, but farming is an industry where the professional is deeply personal. And I know so many of you are fearful of the impact – fearful you can’t pass livelihoods on to future generations.”
Tom Bradshaw, president of the NFU, is also expected to deliver a critical speech, calling the government’s inheritance tax policy “morally wrong” and urging ministers to “do the right thing” by reversing the changes. A protest is also anticipated at the conference against Reed and the inheritance tax proposals.
In an effort to support the farming community, Reed will pledge a £110m investment in farming technology and announce new requirements for government catering contracts to prioritize British produce.
The NFU had long advocated for an extension of the seasonal farm worker scheme, which became necessary after Brexit led to the end of the free movement of workers between the UK and the EU. Before Brexit, the farming sector relied heavily on EU workers to pick fruit and vegetables during harvest periods. These workers would come to the UK for short-term roles and then return to their home countries once the work was finished.
However, with the end of free movement, the government was forced to introduce a temporary seasonal worker scheme, allowing workers to stay for six months at a time. When the scheme was set to expire in 2021, the NFU successfully lobbied for a three-year extension through 2024. Last year, the Labour government confirmed that the seasonal worker visas would continue into 2025. The NFU has estimated that £60m worth of produce was wasted in the first half of 2022 alone due to a shortage of pickers.
The scheme has an annual cap of 45,000 to 55,000 workers, who can only stay for six months, cannot access public funds, and are not permitted to bring their families with them. The government hopes that technological advancements, including robots capable of picking fruit and vegetables, will eventually reduce the need for human workers in the agricultural sector. However, this technology is still in its early stages, and it is not yet suitable for all types of farming.
As the UK government seeks to balance technological innovation with the immediate needs of the farming community, the future of the seasonal worker scheme remains a vital issue for both farmers and policymakers alike.
Stay tuned to London Pulse News for further updates on this story and other farming-related developments.
