Farmers across the United Kingdom have mobilized to protest against proposed changes to inheritance tax (IHT) by Chancellor of the Exchequer, Rachel Reeves. They are demanding a reversal of what they describe as an “unfair and unjust” tax policy that threatens the viability of family farms. On Monday, hundreds of food producers participated in go-slow demonstrations nationwide, with thousands more expected to converge on London on Wednesday, just hours before Reeves presents her Budget in Parliament.
The protests occur against a backdrop of increasing anxiety within the agricultural sector. Dan Willis, a Newbury farmer and one of the protest organizers, 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 marks the third such demonstration since changes to IHT were first announced last October.
Under Reeves’ proposal, from April 2026, agricultural and business property assets valued up to £1 million will continue to receive 100% relief. However, any amount above that threshold will incur an effective tax rate of 20%. Farmers, who are often asset-rich but cash-poor, fear they may be compelled to sell land to meet tax obligations, potentially jeopardizing food production.
The Daily Express has actively campaigned against this tax increase through its Save Britain’s Family Farms initiative. Mo Metcalf-Fisher from the Countryside Alliance voiced the concerns of many, stating, “The family farm tax has caused a huge amount of anxiety across the countryside… 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.”
Investment in family farms is already stalling due to the uncertainty surrounding the tax changes. Tom Bradshaw, president of the National Farmers Union, warned that many farms are halting investments or preparing to sell part of their operations just to pay the IHT bill. The impact extends beyond inheritance tax; some horticultural businesses have also faced increased employment costs following changes to employer national insurance contributions announced in the previous budget.
The Country Land and Business Association‘s president, Gavin Lane, stressed the gravity of the situation, stating, “The last Budget shook the countryside, and the next one could hit even harder.” He highlighted potential new taxes such as capping lifetime gifting and extending national insurance to rental income, which could hinder the financial stability of rural businesses.
In the face of these challenges, opposition Conservative Party members have called for immediate government action to support farmers, food producers, and fishermen. Victoria Atkins, Shadow Environment Secretary, recently sent a letter to Emma Reynolds, the current Environment Secretary, outlining five measures to ease cash flow pressures, including reversing the IHT changes and expediting applications for a new Sustainable Farming Incentive scheme.
Reynolds, in her recent remarks, emphasized the government’s commitment to the rural economy, stating, “This Government sees the rural economy as absolutely fundamental to our growth mission.” She announced the formation of a rural taskforce that will present 50 actions to assist rural businesses early next year, alongside plans for a rural and wildlife crime strategy. Reynolds also mentioned an upcoming review into farming profitability and a redesigned sustainable farming incentive subsidy scheme.
The Treasury has responded to concerns by highlighting support measures, including a £1 million annual investment allowance for plant and machinery and efforts to reduce costs associated with exporting to the European Union. A spokesperson noted that reforms to agricultural property relief aim to ensure that vital public services receive necessary funding.
As the Budget approaches, farmers remain resolute in their demands. The outcome of the upcoming governmental discussions will be closely watched, as many in the agricultural sector hope for a resolution that supports the sustainability of family farms across the UK.
