(Commonwealth_UK) Thousands of British farmers gathered in London on Tuesday to express their discontent with a new government proposal regarding inheritance tax on agricultural assets. The protest saw tractors and coaches filled with farmers from across the UK—England, Scotland, Wales, and Northern Ireland—converging on Parliament Square, braving the bitter cold to demonstrate their opposition. This protest came as leaders from the National Farmers’ Union (NFU) held discussions with Members of Parliament (MPs) in Westminster.
Among the protesters was Kieron Goodall-Lomax, a sheep farmer from Derbyshire, who spoke to The London Standard about his concerns. He argued that the proposed changes to inheritance tax on farming assets were a sign of a Labour Party government disconnected from rural communities. Goodall-Lomax warned that the plan would put immense pressure on an already struggling industry, potentially leading to the collapse of family farms across the country. “This is just going to break up family farms,” he lamented, noting the severe challenges farmers already face.
Shortly after its landslide victory in the July general election, Prime Minister Keir Starmer‘s Labour government introduced the controversial inheritance tax reforms. The proposal, detailed by Chancellor of the Exchequer Rachel Reeves in last month’s budget, will see the introduction of inheritance tax on agricultural estates valued above £1 million ($1.27 million). Under the current system, the 1992 Agricultural Property Relief (APR) allowed such estates to be exempt from inheritance tax, but beginning in April 2026, farming assets worth more than this threshold will be subject to a 20 percent tax—half of the standard 40 percent rate imposed on other assets over £325,000 ($412,000).
This shift has raised alarms among agricultural workers who fear it could decimate the UK’s farming communities. Farmers argue that many agricultural families may own land worth millions, but they often lack the liquidity to cover the new tax burden. As a result, inheritors of these valuable estates might have to sell off family farms to cover the taxes, which could potentially jeopardize the food security of the UK. Shadow Secretary of State for Environment Victoria Atkins, a vocal critic of the reforms, highlighted this financial reality on the BBC, stressing that many farmers are “asset rich, but cash poor.”
The government, however, sees the reforms as necessary to plug a growing fiscal deficit and fund essential services, including the National Health Service (NHS). The new inheritance tax measures are expected to generate up to £520 million ($660 million) annually. The government has also argued that farmers remain a priority for support, citing their importance to the country’s food security and national well-being. In a joint statement, Chancellor Reeves and Secretary of State for Environment, Food, and Rural Affairs Steve Reed expressed their commitment to the farming community but emphasized the need to raise more funds for public services that support both urban and rural populations.
The NFU sharply contests Reeves’s claim that the tax changes will not affect 72 percent of British farms. The union points to data from the Department for Environment, Food, and Rural Affairs (Defra), which suggests that a large portion of the country’s 209,000 farms are worth more than £1 million, meaning they would be liable for the new inheritance tax. Critics argue that the Treasury’s claim is based on outdated information, including figures from past claims for APR, and does not account for assets eligible for Business Property Relief (BPR)—another scheme that applies to farming assets. The NFU disputes the government’s calculations, asserting that the true number of affected farms is likely much higher than 72 percent, with many farms now valued at over £1 million.
The lack of clarity regarding the scope of the reforms has led to growing unease within the agricultural sector. Last week, Jeremy Moody from the Central Association of Agricultural Valuers (CAAV) raised concerns about the government’s lack of comprehensive data on farms’ total value, especially about BPR claims, which include machinery, livestock, and other farming assets not covered under APR. Moody argued that failing to address the full scope of these assets in the government’s calculations leaves important gaps in the discussion about the reforms’ potential impact.
Despite the mounting backlash, Prime Minister Keir Starmer has remained resolute in his stance, insisting that the vast majority of farmers will not face any negative consequences. In an interview with the BBC, he emphasized his confidence in the government’s position, claiming that the reforms would not harm most farms. However, this assertion has done little to quell the concerns of those in the farming community, who argue that the government’s approach is too narrowly focused and ignores the real financial pressures faced by many farm owners.
Farmers continue to grapple with the prospect of a future where inheritance tax burdens will limit their ability to pass on their livelihoods to the next generation. The government’s plans are set to go into effect in 2026, but with opposition from the agricultural sector intensifying, it remains to be seen whether there will be any significant changes to the proposal or if the government will stand firm on its decision. What is clear, however, is that the tension between rural communities and the government is far from over.
