Thousands of farmers have rallied against the government’s proposed inheritance tax reform, calling it a “betrayal” that threatens the future of family farms.
Tom Bradshaw, president of the National Farmers’ Union (NFU), received a standing ovation at Church House as he slammed the policy as “the straw that broke the camel’s back”.
“Introducing this damaging policy without talking to anyone in the farming beggars belief,” Bradshaw told the 600 NFU members in attendance. Highlighting severe inflationary pressures and challenging weather conditions over the past 18 months, he added: “You in this room have nothing to offer. It is wrong on every level and, worse, it will not achieve what the Ministry of Finance wants to achieve.”
The government aims to raise £520 million a year by 2029 through inheritance tax reforms, aimed at wealthy people investing in large estates to reduce their tax bills. However, Bradshaw warned that the changes would encourage people to take money out of their pensions to invest in £1 million worth of farmland, which could undermine the purpose of the policy.
Emotionally moved during his speech, Bradshaw spoke of the “unacceptable human impact” on older farmers who are at risk of losing their livelihood because of the budget. “We know that any tax money collected will be taken from our children and raised by those who die in tragic circumstances or in the next seven years,” he said.
Farmers argued that the seven-year gift rule—which exempts gifts from inheritance tax if the donor lives for seven years after the transfer—would not work well for them. This is because many farmers need a farm pension after passing it on to the next generation, which is counted as retained earnings. Additionally, if they continue to live on the farm after the transfer, they will have to pay rent to avoid inheritance tax charges.
Tensions are brewing in Westminster, with farming leaders insisting the Treasury is “working on the wrong numbers”. The government insists that 73% of farms will not be affected by the changes, urging farmers to “look at the facts” in historical application data. The NFU disputes this, saying Treasury officials based their figures only on Agricultural Property Relief (APR) claims, ignoring Business Property Relief (BPR) claims which are important for machinery and livestock.
“Most property cases include Agricultural Property Relief and Business Property Relief,” the NFU informed its members. “HMT completely misunderstood its data and ignored the claims made by farmers under the BPR regime.”
In the rally, each of the 600 seats had a message for the government: “The government should stop this policy. The principle has been violated and is based on incorrect evidence.” The scene was filled with obvious anger, which culminated in a direct reminder: “When you make a promise to farmers, you keep it.”
The farming community is very upset as, when the opposition party, Labor assured them that there are no plans to change the inheritance tax. Sir Keir Starmer, speaking at the NFU conference in 2023, promised to give “certainty” to farmers.
