Should Labour U-turn on farmer inheritance tax?
Farmers are absolutely furious, with some even threatening ‘direct action’ as they take aim at Chancellor Rachel Reeves‘ controversial family farm tax.
Hot on the heels of yesterday’s protests outside Westminster, there’s now talk of strikes – and even the possibility of empty shelves – if farmers don’t get the government to back down on changes to inheritance tax announced in the recent Budget.
More than 10,000 farmers and supporters gathered in London yesterday to protest plans to impose a 20% inheritance tax on agricultural assets worth more than £1 million, starting in April 2026.
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Labour insists that only the wealthiest 500 estates each year will be affected, with the new policy bringing in £520 million to plug the £22 billion ‘black hole’ the Tories left behind. Plus, they argue that with other allowances, as much as £3 million could be passed on without triggering inheritance tax. But the National Farmers Union and the Country Land and Business Association estimate that up to 70,000 farms could still be impacted by the changes.
At the rally, there were emotional speeches and impassioned calls for Ms Reeves to reconsider. Olly Harrison, one of the protest organisers, spoke to the crowd about his family’s 175-year history of farming in Merseyside. “Me and my ancestors have worked tirelessly over those years to build the farm as it is today, but I could be the last person to produce food on that land,” he said. “The government has taken away the ability for me to pass on the family farm in a financially stable way to my three children. That makes me so angry.”
Tom Bradshaw, president of the National Farmers Union, couldn’t hide his anger either, calling the tax changes a ‘stab in the back’. While he didn’t suggest a clear solution, he did urge Chancellor Reeves to sit down with him to work things out. “The impact on retail prices is going to have to be dramatic,” he warned, citing a combination of cost hikes and weather problems farmers have already had to endure.
But the government is standing by its decision. Environment Secretary Steve Reed argued that Labour has already committed £5 billion to support sustainable food production in the UK, calling it the “biggest budget” of its kind in the country’s history. He also pointed out that only around 500 farms would be affected by the inheritance tax changes, meaning the majority of farmers wouldn’t pay more.
So, should Labour U-turn on this? It’s clear that tempers are running high, and the farming community is ready to make their voices heard if the government doesn’t listen.