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UK extends seasonal farm worker scheme for five years as inheritance tax row rumbles on

by February 26, 2025
February 26, 2025
UK extends seasonal farm worker scheme for five years as inheritance tax row rumbles on

In an effort to ease tensions with the farming sector, Environment Secretary Steve Reed is set to confirm a five-year extension of the UK’s seasonal farm worker scheme.

The announcement, due at the National Farmers’ Union (NFU) conference, follows weeks of discontent sparked by inheritance tax changes in the spring budget.

Under the extended scheme, which was previously scheduled to expire in 2024, an annual quota of 45,000–55,000 visas will remain available to foreign workers for up to six months. This arrangement provides farms with a consistent seasonal workforce, particularly for labour-intensive fruit and vegetable harvesting. The NFU has repeatedly argued that without this scheme, British agriculture would face severe labour shortages, with an estimated £60 million worth of produce wasted in the first half of 2022 due to unpicked crops.

Reed’s announcement comes amid fierce criticism from farmers and industry bodies over the government’s inheritance tax (IHT) overhaul, a measure introduced by Chancellor Rachel Reeves. Critics claim the new rules threaten family-run farms, many of which have relied on long-standing reliefs to pass businesses on through generations. Some tax experts counter that loopholes had to be addressed, but leading figures at the NFU accuse ministers of breaking promises with what they deem a “morally wrong” policy.

Speaking at the NFU conference in central London, Reed will attempt to reassure farmers that the government intends to boost profitability in agriculture. “I will consider my time as secretary of state a failure if I do not improve profitability for farmers,” he is expected to say. “Ensuring farming becomes more profitable is how we make businesses viable for the future—and secure the long-term food security this country needs.”

However, industry leaders, including NFU president Tom Bradshaw and CBI chair Rain Newton-Smith, have warned of the policy’s far-reaching consequences. They say the new IHT rules risk undermining smaller farms struggling to stay afloat, particularly when many are already grappling with soaring input costs, supply chain disruptions and ongoing labour challenges.

Beyond addressing labour shortages, Reed will unveil a £110 million investment into agricultural technology, aimed at developing more advanced, automated methods of harvesting. Although the government hopes that robotics will ultimately reduce reliance on seasonal workers, large-scale deployment remains in its infancy. For now, many growers continue to depend on human pickers, especially for labour-intensive crops that technology cannot yet handle efficiently.

Reed will also announce the creation of a new national biosecurity centre. Focused on tackling animal diseases such as foot-and-mouth and bluetongue, the facility signals the government’s intent to safeguard the UK’s farming sector amid mounting environmental pressures and globalised trade risks.

With this extension of the seasonal worker scheme, the government is betting on a middle-ground approach: mitigating immediate labour shortfalls while paving the way for a more technologically driven farming future. The measure may go some way towards soothing industry frustrations, but whether it can truly mend the fractured relationship between Whitehall and the farming community—especially given the heated inheritance tax debate—remains to be seen.

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UK extends seasonal farm worker scheme for five years as inheritance tax row rumbles on

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