How Labour’s inheritance tax hike for farmers could spell the end of family farming_Nhy
Family and tenant farmers were last night left fearing their businesses may not survive Labour’s ‘disastrous’ decision to scrap their inheritance tax relief.
Industry leaders accused the Government of breaking ‘clear promises’ not to tamper with exemptions for agricultural property.
The National Farmers’ Union predicted the change – axing Agricultural Property Relief and Business Property Relief on farms worth more than £1million – would ‘snatch away the next generation’s ability to carry on producing British food’ – and could lead to higher prices.
And the Country Land and Business Association said the move, from April 2026, would hit 70,000 farms – calling it ‘nothing short of a betrayal’ which would ‘jeopardise the future of rural businesses’.
Tory MP Neil O’Brien said: ‘She has gone way, way too low with the threshold for agricultural property – this is the end of the family farm.’
Chancellor Rachel Reeves said the country had ‘voted for change’ and vowed to ‘invest’ as she mounts one of the biggest raids in history in the Commons
Industry leaders accused the Government of breaking ‘clear promises’ not to tamper with exemptions for agricultural property (file image)
Ms Reeves carried out the traditional photo op outside the famous No11 black door today
Steve Ridsdale will face a £600,000 inheritance tax bill when his parents leave him their farm
Farmer Clive Bailye, who runs The Farming Forum discussion website, posted a tombstone image on social media. He said: ‘When my parents pass away, I will have no choice but to sell the land and property. My children will never have the opportunity to farm.’
The Staffordshire farmer added: ‘There are next to no farms worth under £1million except hobby farms. A £1million farm is 100 acres just for the land and you can’t make a living from 100 acres. It’s almost an insult to say £1million protects the family farm.
‘In a sector with the highest rate of suicide of any profession, some might think it’s time to pass on the farm before this comes in. Is the Government going to have blood on their hands?’
Jeremy Clarkson, broadcaster and owner of 1,000 acre farm Diddly Squat in Oxfordshire, said: ‘Farmers. I know that you have been shafted today. But please don’t despair. Just look after yourselves for five short years and this shower will be gone.’
Kirstie Allsopp, broadcaster and property expert, said: ‘Rachel Reeves had f***** all farmers, she has destroyed their ability to pass farms on to their children… it is an appalling decision which shows the Government has ZERO understanding of what matters to rural voters.’
Last December, then shadow environment, food and rural affairs secretary Steve Reed assured the National Farmers’ Union that Labour had ‘no plans’ to axe the tax breaks.
And in February 2023, Sir Keir Starmer appeared to acknowledge the value of British farmers, telling the NFU conference: ‘Every day seems to bring a new existential threat to British farming. You deserve better.’
The changes mean inheritance tax will apply at 20 per cent to 50 per cent of the value of farms worth more than £1million – with one expert saying 90 per cent of farms could be affected. Tenant farmers could be forced out as large landowners can secure alternative tax exemptions if land is used differently.
Tom Bradshaw, president of the National Farmers’ Union, said: ‘It’s been a disastrous budget for family farms. Just because a farm is valuable as an asset it doesn’t mean those who work it are wealthy.’
Shadow farms spokesman Steve Barclay said: ‘Labour have broken a clear promise.’
Jeremy Clarkson said farmers had been ‘shafted’ as he broke his silence on Labour’s inheritance tax hike announced in the Budget on Wednesday
Kirstie Allsopp, broadcaster and property expert, said: ‘Rachel Reeves had f***** all farmers, she has destroyed their ability to pass farms on to their children’
The Budget tax hike rivals 1993’s eyewatering revenue-raiser in the wake of Black Wednesday – and might be even bigger if measured at current prices rather than as a proportion of GDP
