In November, an extensive gathering of British farmers descended upon Westminster, with some navigating tractors around Parliament Square.
They were protesting against the Labour government’s recent decision to implement an inheritance tax on their assets for the first time in over thirty years.
This Tuesday, they are poised to converge on London once more for the National Farmers’ Union (NFU) annual conference, where the controversial tax is anticipated to dominate discussions once again.
In her inaugural budget last October, Chancellor of the Exchequer Rachel Reeves announced a reduction in the inheritance tax exemption for agricultural land.
According to the new policy set to commence in April 2026, farms valued above £1 million will incur a 20% tax upon being transferred to the next generation. The threshold for couples bequeathing their estate jointly will increase to £3 million.
The issue has escalated into a significant political challenge for Prime Minister Keir Starmer, whose initial seven months in office have been characterised by falling approval ratings.
Despite this, the government has maintained its stance, and a recent discussion with farm sector representatives concluded without resolution.
The Labour government will be sending Steve Reed, Secretary of State for Environment, Food and Rural Affairs, to the conference. Reed has been at the forefront of the backlash against this tax adjustment.
This week, he disclosed initiatives to encourage more public sector entities to purchase British produce, aiming to garner support from the agricultural community.
The government maintains that the new tax will affect only around 500 farms annually, a fraction of the UK’s total number of farmers.
However, the NFU argues that more holdings will meet the new threshold than the government anticipates, and that the policy poses a threat to Britain’s food security while disproportionately affecting farming families who are already dealing with high energy costs and the repercussions of Brexit.
“Food security should be at the forefront of everyone’s agenda,” stated NFU head Tom Bradshaw following last week’s fruitless meeting, expressing concern over the policy’s impact on intergenerational farm transfers.
