Farmers across the United Kingdom are mobilizing against proposed changes to inheritance tax (IHT) by Chancellor of the Exchequer Rachel Reeves, which they deem “unfair and unjust.” On Monday, hundreds of food producers participated in go-slow protests nationwide in anticipation of the Chancellor’s Budget announcement scheduled for Wednesday. A larger demonstration is expected in London, where farmers will arrive with their tractors hours before Reeves addresses Parliament.
Among the organizers of Wednesday’s action is Newbury farmer Dan Willis, who emphasized the urgency of the situation. He stated, “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. We have not gone away and we will not back down. This unfair, unjust family farming tax needs to be reversed.” The protests on Monday marked the third such event, following similar rallies held in February and December 2023, after Reeves announced IHT changes during her Budget speech last October.
According to the new rules, which will take effect from April 2026, combined agricultural and business property assets up to £1 million will continue to receive 100% relief. However, anything above that threshold will be taxed at an effective rate of 20%. Many farmers, particularly those who are asset-rich but cash-poor, are expressing concern that they may need to sell portions of their land to meet tax obligations, potentially jeopardizing food production.
The Daily Express has been actively campaigning against the proposed IHT changes through its “Save Britain’s Family Farms” initiative. Mo Metcalf-Fisher from the Countryside Alliance remarked that the “family farm tax” has caused significant distress in rural communities. He noted that since the previous Budget announcement, farmers, along with public support, have engaged in various demonstrations to voice their concerns. He added, “It is clear to almost everybody that the Government needs to get back around the table with the farming sector to work out a way forward that won’t see thousands of farming families thrown under the bus.”
The President of the National Farmers Union, Tom Bradshaw, warned that many family farms are halting investments and may be forced to sell parts of their farms to cover IHT liabilities. Additionally, some horticultural businesses are facing skyrocketing employment costs due to increased employer national insurance contributions introduced in the last budget.
Gavin Lane, the President of the Country Land and Business Association, expressed his apprehension about the potential impact of the upcoming budget. He stated, “The last Budget shook the countryside, and the next one could hit even harder.” Lane highlighted several proposals under consideration, including capping lifetime gifting, extending national insurance to rental income, and potential changes to capital gains tax, all of which could adversely affect rural businesses. He warned that these tax changes could compel rural enterprises to reduce their growth, ultimately harming employment and investment.
In response to the growing unrest, the Conservative Party has called on the government to take immediate action to support farmers and food producers. Shadow Environment Secretary Victoria Atkins recently outlined five measures that could provide relief to the sector, including the cancellation of IHT changes and the swift opening of applications for the Sustainable Farming Incentive scheme.
Environment Secretary Emma Reynolds has indicated a commitment to the future of the agricultural sector. She announced new policies aimed at supporting rural businesses, such as the establishment of a “rural taskforce” that will publish 50 actions early next year. These measures include simplifying the process for constructing reservoirs on farms and developing a rural and wildlife crime strategy. Reynolds stated, “This Government sees the rural economy as absolutely fundamental to our growth mission. When rural economies succeed, the whole country succeeds.”
She also mentioned an upcoming review into farming profitability and the development of a comprehensive farming roadmap, all set to be unveiled in the coming months. “Let me be clear about what we’re building together, a rural economy that thrives with sustainable, profitable farm businesses that can plan for the long term,” Reynolds added.
A spokesperson for the Treasury provided a counter-narrative, asserting, “We’re backing British farms with a £1 million annual investment allowance for plant and machinery investments, billions for sustainable food, and action to cut EU export costs.” They noted that currently, 40% of agricultural property relief, amounting to £219 million, is allocated to just 117 estates, and reforms aim to redirect that funding into essential public services.
As the Budget approaches, tensions between the farming community and the government remain high, with farmers continuing to demand a reassessment of the proposed changes to inheritance tax and a renewed commitment to supporting the agricultural sector.
