Farmers across the United Kingdom have pledged to resist what they describe as an “unfair and unjust” inheritance tax change proposed by Chancellor of the Exchequer Rachel Reeves. The inheritance tax (IHT) adjustments touch on a sector already facing significant challenges, prompting widespread protests leading up to the Budget announcement on March 6, 2024.
On Monday, hundreds of food producers engaged in go-slow demonstrations nationwide. This was the third such protest since similar rallies took place in February and December following the Chancellor’s previous announcements. Thousands more are expected to converge on London with their tractors just hours before Ms. Reeves presents the tax measures in the House of Commons.
Dan Willis, a farmer from Newbury and one of the protest organizers, emphasized the collective effort of farmers, stating, “We are all representing the working people of Britain to keep up the pressure on this present government to withdraw the proposed inheritance tax changes.” He added, “This unfair, unjust family farming tax needs to be reversed.”
The recent IHT changes, as outlined in last year’s Budget, will take effect from April 2026. Under this new structure, combined agricultural and business property assets up to £1 million will receive full relief, but anything exceeding that threshold will incur a tax at an effective rate of 20%. Many farmers, particularly those with significant land assets but limited cash flow, are concerned that they will be forced to sell portions of their land, potentially jeopardizing food production viability.
The Daily Express has actively campaigned against the IHT changes through its “Save Britain’s Family Farms” initiative. Mo Metcalf-Fisher of the Countryside Alliance noted that the proposed tax has generated widespread anxiety among local farmers. Since the announcement, numerous demonstrations have occurred, reflecting the deep unrest felt across the agricultural community. “Given the strength of feeling within the farming sector, it is very unlikely these demonstrations will diminish,” he said.
The president of the National Farmers Union, Tom Bradshaw, warned that many family farms are either halting investments or anticipating the sale of land to cover the impending IHT liabilities. Additionally, horticultural businesses have reported sharp increases in employment costs due to elevated national insurance contributions introduced in last year’s budget.
Concerns regarding future taxation measures further compound the anxiety among rural businesses. Gavin Lane, president of the Country Land and Business Association, expressed worries about proposals that could cap lifetime gifting and extend national insurance to rental income. “Taken together, these taxes could force rural businesses to pull back rather than grow,” he stated, emphasizing the risk of job cuts and stalled investments.
In light of these pressing issues, the Conservative Party has urged the government to take swift action to support farmers and food producers. Shadow Environment Secretary Victoria Atkins recently outlined five measures the government can implement to alleviate immediate cash flow pressures, including repealing the proposed IHT changes.
The government has acknowledged the situation, with Environment Secretary Emma Reynolds stating her commitment to “focus on the future” of the agricultural sector. She outlined plans for a rural taskforce and a series of actions aimed at supporting rural businesses. Furthermore, Reynolds mentioned an upcoming review of farming profitability and new policies aimed at improving the agricultural landscape.
“Let me be clear about what we’re building together,” Reynolds stated, “a rural economy that thrives with sustainable, profitable farm businesses that can plan for the long term.”
In response to the outcry from the agricultural community, a spokesperson for the Treasury highlighted ongoing investments aimed at supporting British farms, including a £1 million annual investment allowance for plant and machinery. The spokesperson also noted the need to reform agricultural property relief, which disproportionately benefits a small number of large estates.
As the farming community prepares for the Chancellor’s Budget announcement, the outcome of these protests and the government’s subsequent responses may shape the future of agriculture in the UK, a sector that plays a vital role in the nation’s economy.
