Keir Starmer stands by farm tax shake-up as main protest looms

Keir Starmer has doubled down on his inheritance tax shake-up for farmers – saying the “vast majority” will be unaffected.

He said in most cases the changes will not kick in unless the land being handed down is worth £3million.

It comes as new analysis found the value of farmland has risen by four times the rate residential homes have gone up by since 2010. Thousands of farmers are expected to descend on London on Tuesday for a huge protest over the Budget plan.

But the PM rubbished claims the Government had turned its back on the farming community, pointing to billions of pounds of investment.

In her Budget last month Chancellor Rachel Reeves announced tax breaks for farmland worth over £1million will be closed. But she said a string of protections for spouses and children of farmers who die mean the threshold will be three times this sum in most cases.

Mr Starmer told reporters on the flight to the G20 Summit in Brazil: “I think it is very important that we support farmers. That’s why we’ve put £5billion in the Budget for the next two years into farming.

“That is not to be overlooked. That is the single biggest sum of money in a Budget over a two-year period that has ever been put down in relation to farming.” He also pointed to £250million to help with flooding and disease control for farmers.

But he admitted: “Obviously, there’s an issue around inheritance tax and I do understand the concern.”

The PM went on: “The threshold for a typical case is £3million.” The Government announced it is removing inheritance tax relief on agricultural land. Since 1984 landowners have been able to pass this on without being hit. It has sparked concerns that some are buying it up in order to avoid paying it.

In 2017 BBC Countryfile host and farmer Adam Henson said “pop stars, film stars and hedge fund managers are buying land so it is difficult for young people to get into farming”.

Analysis of data by real estate consultancy Knight Frank shows the average cost of an acre of farmland rose from £5,397 in 2010 to £9,335 this year. This is an increase of over 70%.

A Labour source told The Mirror : “Labour is asking rich estates and farms with the highest values to pay their fair share.”

The PM said: “For a typical case, which is parents with a farm they want to pass on to one of their children, by the time you’ve taken into account not only the exemption for the farm property itself, but also the exemption for spouse to spouse, then parent to child, it’s £3million before any inheritance tax will be payable.

“That’s why I am absolutely confident the vast majority of farms and farmers will not be affected by this. It’s important for us to keep communicating how that works.”

From April 2026, farmers will pay 20% on eligible assets – half the standard inheritance tax rate. Farming groups warn the measures will destroy family farms or see them carved up.

Tom Bradshaw, President of the National Farmers’ Union, said on Sunday: “I have never seen the united sense of anger that there is in this industry today. The industry is feeling betrayed, feeling angry.” Mr Starmer said it is a “matter for police” how they respond to the protest in London.