Labour is under fire for allocating over £500 million to support farming projects abroad while facing accusations of undermining British agriculture with changes to inheritance tax.
New analysis reveals that £536 million is being funnelled into 10 overseas programmes across Africa, Asia, and South America, including a low-carbon agriculture initiative in Brazil, the world’s 11th-richest country.
Some projects span more than a decade, with one £206 million scheme running from 2012 until 2031.
Among the initiatives is a £16 million programme aimed at cultivating tea in Rwanda for the first time, according to figures obtained by the Taxpayers’ Alliance and shared with The Daily Express.
The controversy comes as Chancellor Rachel Reeves faces widespread anger for cutting inheritance tax relief on farms and businesses.
Under the revised rules, farmers must pay 20% tax on the value of their farms exceeding £1 million, a move expected to raise £500 million in revenue.
Robert Jenrick, a shadow cabinet minister, criticised Labour for prioritising foreign farming projects over British livelihoods. “Spending hundreds of millions on foreign farmers while British farmers are being devastated by cruel inheritance tax changes feels like a slap in the face,” he told The Express.
He urged Labour leader Keir Starmer to reverse the decision, accusing him of breaking an election promise.
The tax changes have sparked widespread protests, with over 20,000 farmers marching on Whitehall earlier this week.
High-profile figures, including celebrity farmer Jeremy Clarkson and Lord Lloyd-Webber, joined the demonstrations. Clarkson accused Reeves of delivering farmers “a knee in the nuts.”
Rupert Lowe, agriculture spokesman for Reform UK, called for an immediate halt to foreign farming aid. “I’ve written to the Foreign, Commonwealth and Development Office demanding that no British taxpayer money is spent on overseas farms,” he said on social media.
The criticism also highlights the broader debate over the UK’s foreign aid budget. Despite cutting the overseas aid target from 0.7% to 0.5% of gross national income in 2021, the UK spent £15.3 billion on foreign aid in 2023, equivalent to 0.58% of gross national income.
A £105 million programme launched in 2023 by the Foreign, Commonwealth and Development Office (FCDO) supported “resilient farming systems” in unspecified countries, raising further questions about spending priorities.
Joanna Marchong, from the Taxpayers’ Alliance, urged Labour to refocus on domestic agriculture. “Reeves should cut funding to farms abroad and prioritise supporting British farmers who contribute to food security and local communities,” she said.
Labour’s manifesto earlier this year promised to restore the foreign aid target of 0.7% “as soon as fiscal circumstances allow.” However, Reeves did not reinstate the target in her 20 October Budget, drawing criticism from billionaire philanthropist Bill Gates.
The controversy has deepened divisions within Labour and among British farmers, with many calling for urgent action to protect domestic agriculture and rural livelihoods.
