Why are Britain’s farmers protesting?
Farmers have been taking to the streets in Whitehall, to voice their anger at the Labour government’s decision to impose inheritance tax on agricultural property.
Industry experts warn that the move, first put forward by chancellor Rachel Reeves during her first Budget last October, could seriously affect Britain’s food security and the future of family farms.
But what are the key reasons behind the protests?
What are the changes to farm inheritance tax?
For years, farming families have been able to pass down their land without worrying about inheritance tax, thanks to full relief under Agricultural Property Relief (APR) and Business Property Relief (BPR). But that’s changing. Under new rules, any agricultural assets worth over £1 million will now face a 20% tax.
The government insists that, with exemptions for farm property and married couples, most won’t have to pay until their estate reaches £3 million. However, many farmers argue that the reality will be far tougher, putting family-run farms at risk.
Why has the government introduced the changes?
Labour says these tax changes are needed to help fill a £22 billion gap in the public finances. The Treasury argues that just 7% of the wealthiest estates claim 40% of Agricultural Property Relief (APR), costing the government £219 million a year.
Ministers say they’re making the system fairer by tightening tax relief on farmland. But many in the farming community feel those in power don’t understand the realities of rural life.
How many farms will be affected?
The Treasury says only 500 estates a year will have to pay inheritance tax under the new rules. But farming leaders aren’t so sure.
The NFU points to figures from the Department for Environment, Food and Rural Affairs (Defra) showing that 66% of English farm businesses having a net value of more than £1 million. And with APR and BPR now merged into a single £1 million allowance, it’s not just land being taxed — livestock, machinery, and even stored grain could push more farms over the threshold.
However, the Government has countered this analysis, stating that looking at asset value alone does not necessarily mean the farm will be affected, as it depends on individual circumstances.
Why are farmers worried?
Farmland might be worth a lot on paper, but farm incomes are often tight. Many families simply don’t have the cash reserves to cover a big inheritance tax bill, meaning they could be forced to sell land or break up farms that have been passed down for generations.
NFU president Tom Bradshaw has warned that elderly farmers could be hit hardest, unable to restructure their businesses in time. Others fear the changes will discourage investment, as farmers hold back on growing their businesses to avoid future tax burdens.
Tenant farmers could also feel the knock-on effects if landowners decide it’s no longer worth keeping farmland in use.
Critics say the policy risks driving down food production and making life even harder for Britain’s struggling farming communities. Tom Bradshaw also previously said there is a feeling among farmers that the Government does not understand food production.
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