Thousands of farmers have staged a rally against the government’s proposed inheritance tax reforms, branding them a “betrayal” that threatens the future of family-owned farms.
Tom Bradshaw, president of the National Farmers’ Union (NFU), received a standing ovation at Church House as he condemned the policy as “the straw which broke the camel’s back”.
“To launch a policy this destructive without talking to anyone in farming beggars belief,” Bradshaw told the 600 NFU members in attendance. Highlighting the severe inflationary pressures and challenging weather conditions over the past 18 months, he added: “You in this room have nothing left to give. It’s wrong on every level and, just as bad, it won’t achieve what the Treasury wants to achieve.”
The government aims to raise £520 million a year by 2029 through the inheritance tax changes, targeting wealthy individuals who invest in large estates to reduce their tax bills. However, Bradshaw warned that the reforms would incentivise people to withdraw money from pensions to invest in agricultural land worth £1 million, potentially undermining the policy’s intent.
Emotionally moved during his speech, Bradshaw spoke of the “unacceptable human impact” on elderly farmers who risk losing their life’s work due to the budget. “We know that any tax revenue raised will be taken from our children and raised from those that die in tragic circumstances or within the next seven years,” he said.
Farmers argue that the seven-year gifting rule—which exempts gifts from inheritance tax if the giver lives for seven years after the transfer—would not effectively apply to them. This is because many farmers need to draw a pension from the farm after passing it to the next generation, which counts as a reserved benefit. Additionally, if they continue living on the farm post-transfer, they would need to pay rent to avoid inheritance tax charges.
A standoff is unfolding in Westminster, with farming leaders insisting that the Treasury is “working from the wrong figures”. The government maintains that 73% of farms will not be affected by the changes, urging farmers to “look at the facts” in historical claims data. The NFU disputes this, stating that Treasury officials based their figures solely on Agricultural Property Relief (APR) claims, neglecting the Business Property Relief (BPR) claims that are crucial for machinery and livestock.
“Most inheritance cases combine Agricultural Property Relief and Business Property Relief,” the NFU informed its members. “HMT has completely misunderstood its own data and ignored claims made by farmers under the BPR regime.”
At the rally, each of the 600 seats bore a message for the government: “Government needs to halt this policy. The policy is broken and based on the wrong evidence.” The atmosphere was charged with palpable anger, culminating in a pointed reminder: “When you make a promise to farmers, you keep it.”
The farming community feels particularly aggrieved as, while in opposition, Labour had assured them there were no plans to alter inheritance tax. Sir Keir Starmer, speaking at the NFU conference in 2023, promised to provide “certainty” to farmers.
