Farmers’ leaders are urging the prime minister to pause changes to agricultural inheritance tax while consulting with them.
National Farmers’ Union (NFU) president Tom Bradshaw informed MPs that farmers are willing to collaborate with the government and suggested various ways to make the policy more favorable.
Protesters drove tractors through Westminster in opposition to October’s Budget, while in the Commons Liberal Democrat leader Sir Ed Davey called for the PM to acknowledge the crucial role played by British family farms.
However, Sir Keir Starmer asserted that the majority of farmers would not be impacted by the tax alterations.
Starting April 2026, inherited agricultural assets exceeding £1m, previously exempt, will now be subject to inheritance tax (IHT) at a reduced rate of 20%.
Couples may be eligible for additional allowances to pass on farms worth up to £3m.
Many farmers argue that they may possess valuable assets in terms of land and livestock but lack liquid cash, leading them to contemplate selling off assets to cover the tax.
Farmers’ leaders testified before MPs on the Commons environment, food and rural affairs committee, with Mr. Bradshaw advocating for tax adjustments to prioritize personal wealth over business wealth for a more favorable outcome.
He emphasized the importance of working together to find a solution that benefits all parties involved rather than the current proposal.
Other individuals, including Victoria Vyvyan, president of the Country Land and Business Association, and Robert Martin, national chairman at the Tenant Farmers Association, echoed concerns over the impact of the tax changes on farmers.
During Prime Minister’s Questions, Sir Ed called for a review of the policy, claiming family farms had been let down by the previous government and feared the recent Budget would be detrimental.
Sir Keir defended the government’s stance, highlighting investments made in farming and emphasizing that the majority of farmers would not be affected by the changes.
While there is discontent over the inheritance tax changes, the prime minister’s spokesperson reiterated that only a small number of estates would be impacted.
Meanwhile, the environment department recently announced substantial payments for nature-friendly farming activities benefitting thousands of farmers and introduced new details for environmental land management schemes.
A government report has highlighted the risks posed by long-term decline in the rural environment and worsening climate change on UK food security, emphasizing the need to address declines in natural capital and extreme weather effects on domestic food production.