Chancellor Rachel Reeves has introduced significant tax reforms in the latest budget, sparking concern within the farming community.
A key change is the introduction of a 20% inheritance tax on agricultural estates worth over £1 million, due to take effect from April 2026. Many farmers fear this policy will threaten family-run farms and place further strain on the agricultural sector.
Alistair Carmichael, chair of the UK's environment committee, has warned that without a clear rural policy, the growing disconnect in farming communities will continue to worsen. He noted that while the inheritance tax changes have triggered widespread frustration, farmers have been struggling for years with rising costs, reduced subsidies, inflation, and post-Brexit trade challenges.
The National Farmers’ Union (NFU) has strongly opposed the new tax measures. President Tom Bradshaw has highlighted the mounting pressures on farmers, including rising costs for fuel, feed, and fertiliser. Combined with policy shifts and extreme weather conditions, he believes that the industry is already stretched to its limits.
In response to the reforms, thousands of farmers have taken to the streets in protest. A demonstration in London on 19 November saw tractors driven near Downing Street as part of a wider campaign to push for government action. The NFU has vowed to continue lobbying against the tax changes, arguing that they could force many farmers to sell their land, ultimately reducing domestic food production.
Despite the backlash, the government insists that most farmers will not be affected by the reforms. A spokesperson reiterated the government's commitment to supporting farmers and rural communities, citing planned investments in sustainable food production. However, many within the industry remain unconvinced, fearing that the new financial burden could lead to further hardship and uncertainty for the farming sector.
The debate over the tax changes continues, with growing calls for the government to reconsider policies that could have long-term consequences for the future of UK agriculture.
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