Chancellor accused of dealing further blow to British agriculture following inheritance tax raid with ‘under the radar’ carbon levy

Labour has been accused of dealing another Budget blow to farmers with its so-called “fertiliser tax”.

In the Budget, Chancellor Rachel Reeves confirmed plans to introduce a levy on key agricultural imports such as fertiliser in order to meet net zero goals. The Telegraph has the story.

The carbon border adjustment mechanism (CBAM), due to begin in 2027, will tax carbon-emitting imports such as fertiliser, cement, aluminium and products from the hydrogen and steel industries.

It comes amid outrage over the Chancellor’s £1 million cap on agricultural property relief, nicknamed the “family farm tax”, also introduced in the Budget.

The carbon tax on fertiliser is expected to be set at around £50 to £75 per tonne.

Government sources said they expect the impact on farmers to be modest and for there to be no effect on food prices.

But farmers disagree, warning it could hurt business and feed through to supermarket shelves.

David Walston of Thriplow Farm, a 900-hectare family farm, told The Telegraph’s Daily T podcast that the carbon tax on fertiliser had been introduced “under the radar” compared to the controversial changes to agricultural property relief.

Read the full story here.