Environment secretary Steve Reed to unveil farming reforms to ease tension over inheritance tax

Government Introduces New Policies to Address Farmer Concerns

In a recent effort to alleviate the growing discontent among farmers, the UK government has unveiled a series of new policies aimed at easing the financial burden on the agricultural sector. At the heart of the controversy is the introduction of an inheritance tax on farms, a move that has sparked significant outrage. Environment Secretary Steve Reed is set to address these concerns at the upcoming National Farmers’ Union (NFU) conference, where he will outline measures designed to support farmers and enhance agricultural profitability.

Extending the Seasonal Worker Visa Program

Among the key announcements, the extension of the seasonal worker visa program stands out as a crucial step toward addressing labor shortages in agriculture. This program, long advocated for by the NFU, will now run for five years with annual reviews to ensure it meets the evolving needs of the industry. Farmers have faced challenges in harvesting crops due to insufficient labor, a problem exacerbated since the UK’s departure from the European Union. The visa extension is expected to provide much-needed stability, allowing farmers to plan with greater confidence and security.

Reactions from Farmers and the NFU

Despite the positive reception of the visa extension, the introduction of the inheritance tax remains a contentious issue. NFU President Tom Bradshaw has criticized the government for what he describes as a "morally wrong" policy, accusing officials of breaking promises made to the farming community. Bradshaw emphasizes that the tax change undermines the ability of family-run farms to plan for the future, casting a shadow over their hopes and investments. Farmers have taken their concerns to the streets, staging protests in Westminster to voice their opposition.

Economic Challenges and Government Support

The government’s decision to impose a 20% inheritance tax on farms valued over £1 million, effective from April 2026, is defended as a measure to combat tax avoidance and promote a more equitable distribution of land ownership. However, farmers argue that this policy threatens the survival of small-scale farming operations. In response, the government is also introducing measures to prioritize British produce in public sector catering contracts, aiming for at least 50% of food used in government institutions to be sourced domestically. This move is expected to bolster the market for local farmers and enhance food security.

Investments in Agricultural Sustainability

In addition to labor and market support, the government has announced a significant investment of £110 million in agricultural technology. This funding will assist farmers in adopting innovative tools, such as electric weeders, designed to reduce chemical use and promote environmentally friendly practices. This initiative reflects a broader commitment to sustainability and long-term food security, aligning with the goals outlined in the NFU’s strategy for the future of British agriculture.

A Call for a RESET in Government-Farmer Relations

While the government’s measures have been met with cautious optimism, the NFU is urging a fundamental shift in the relationship between policymakers and farmers. Bradshaw calls for a "RESET," emphasizing the need for trust and collaboration. The-government’s decision to impose the inheritance tax, despite earlier assurances, has eroded confidence within the farming community. As Steve Reed acknowledges, the profitability of farming is crucial for the sector’s viability and the nation’s food security. Moving forward, both sides must work together to address the challenges facing British agriculture, ensuring that policies are both fair and effective in supporting this vital industry.