Farmers react with ‘fury’ and ‘anger’ after Treasury meeting over inheritance tax

Farmers’ Fury Over Inheritance Tax Plans: A Growing Crisis

The UK’s farming community is bracing for a major crisis as the government stands firm on its controversial inheritance tax plans, despite fierce opposition from farmers and rural organizations. The National Farmers Union (NFU) has expressed deep frustration and anger over the proposed changes, which farmers argue will disproportionately affect small and medium-sized farms, threatening their viability and the future of food production in the country. Tom Bradshaw, NFU President, recently met with Treasury officials, where he outlined alternative solutions to the tax reforms. However, the government has refused to budge, leaving farmers feeling betrayed and ignored. “Disappointment doesn’t describe how I feel,” Bradshaw said, emphasizing the union’s outrage over the lack of movement. “The message was clear to them today—go away,” he added, reflecting the growing disconnect between the government and the farming sector.

The Government’s Stance: A Tax Reform They Insist Is Fair

The contentious inheritance tax plan, announced in last October’s budget, will introduce a 20% tax on farms worth more than £1 million from April 2026. The government claims that the reforms will only affect the wealthiest estates, with approximately 500 estates annually impacted. They argue that the new tax rate is a fair adjustment, as it replaces the standard 40% rate for other businesses. Additionally, farmers will have the option to spread tax payments over 10 years, interest-free. A government spokesperson defended the policy, stating, “Our commitment to farmers and rural communities remains steadfast.” They also highlighted a £5 billion investment in farming over the next two years, the largest-ever budget for sustainable food production in the UK. However, farming groups remain unconvinced, asserting that the reforms will have far-reaching consequences for family-run farms and intergenerational succession.

Farmers’ Concerns: A Threat to Family Farms and Food Security

The NFU and other farming organizations have warned that the inheritance tax changes will not only hit wealthy landowners but also devastate small and medium-sized farms, many of which are family-run. These farms, though not necessarily wealthy, often have high land values that push them over the £1 million threshold. As a result, passing the farm to the next generation could become financially impossible, forcing families to sell their land or take on crippling debt. Bradshaw highlighted the human and intergenerational impact of the policy, accusing the government of ignoring the broader implications for food production and rural communities. “They don’t care about the human impact… or food production,” he said. The NFU has proposed an alternative “clawback” scheme, where tax would only be charged when a farm is sold, rather than at the point of inheritance. Despite these proposals, the government has refused to engage, leaving farmers feeling dismissed and undervalued.

Protests and Public Support: Farmers Take a Stand

The fury among farmers has spilled into public protests, with hundreds of tractors blocking Whitehall and Downing Street in recent weeks. These demonstrations are a testament to the growing frustration within the farming community, which feels its concerns are being consistently ignored by policymakers. Tom Bradshaw has urged farmers to maintain public support, recognizing its importance in pressuring the government. “Public support is absolutely fundamental to pressurizing the government,” he said. “We must keep public support at all costs as that will drive political support.” While some have called for more disruptive actions, such as blockading food depots, Bradshaw has cautioned against alienating the public, emphasizing the need for strategic and sustained pressure. The NFU’s approach reflects a delicate balance between expressing anger and maintaining the goodwill of the broader population, without which their campaign risks losing momentum.

Political Fallout: Opposition Criticism and Rural Divide

The row over inheritance tax reforms has also sparked political tensions, with opposition parties accusing the government of mishandling the situation. Victoria Atkins, the Shadow Environment, Food and Rural Affairs Secretary, criticized the government’s approach, saying, “Calling farmers in for a meeting to patronize and ignore them shows Labour are driven only by metropolitan arrogance.” Similarly, Liberal Democrat spokesperson Tim Farron MP accused the government of “throwing farmers to the wolves.” These comments highlight the deepening divide between rural communities and central government, with many feeling that their interests are being sacrificed for the sake of revenue generation. The government, however, remains defiant, insisting that its reforms are fair and necessary to fund public services. As the standoff continues, the farming sector is bracing for what could be a make-or-break moment for family farms and the future of UK agriculture.

Conclusion: A Battle for the Future of Farming

The inheritance tax dispute has become a symbol of the wider challenges facing UK farmers, from financial pressures to a sense of being disconnected from decision-makers in Westminster. The NFU’s frustration reflects a broader anxiety about the long-term sustainability of small and medium-sized farms, which are not only economic hubs but also the backbone of rural communities. While the government insists that its reforms are balanced and fair, farmers argue that the policy fails to account for the unique nature of farming businesses and the importance of intergenerational succession. As protests continue and tensions rise, the outcome of this battle could shape the future of farming in the UK for generations to come. For now, the farming community remains united in its determination to fight for a policy that recognizes their value and ensures the survival of family farms.