Thousands of farmers assembled in London to object to proposed changes to inheritance tax laws included in the last Budget. Farmers, many of whom are asset-rich but cash-poor, have expressed worries about the suggested changes affecting agricultural holdings valued above £1m.
Why Are Jeremy Clarkson and Farmers Leading the Protest March?
TV personality Jeremy Clarkson, best known for his Amazon series Clarkson’s Farm, was among those marching through Whitehall voicing strong criticism of the government’s decision. Declaring, “It’s the end for farmers,” he urged the government to change its course. Clarkson said the suggested tax cuts were a “very rushed last-minute decision” and attacked the administration for not realising the difficulties farming families face.
“I think we all make mistakes in life, and I think it’s time for them to say, ‘you know what, we’ve cocked this one up a bit,’ and back down,'” Clarkson said, stressing the challenges farmers would have under the new tax laws.
What Are the Proposed Tax Changes?
Previously free from inheritance tax, inherited agricultural assets valued above £1m will be liable to a 20% inheritance tax rate from April 2026, half the normal rate. The new regulations do, however, offer some concessions allowing married couples or civil partners to pass on a farm worth up to £3 million free from tax.
Under present regulations, principal houses inherited by children or grandchildren are exempt from inheritance tax on the first £325,000 of an estate’s worth. Depending on the situation, these allowances taken together would provide agricultural families with untaxed assets worth £3m.
Many farmers, however, contend that these developments would force them to sell their farms to pay for taxes as they are often land-rich but suffer from cash flow because of growing running expenses.
Why Do Farmers Fear Financial Ruin?
Organising a sizable demonstration with about 1,800 members advocating MPs, the National Farmers’ Union (NFU) Declared the government’s plan to be a “stab in the back” for farmers, Tom Bradshaw, president of the NFU, gave a fervent speech criticising it. “It’s wrong, it’s unacceptable, and it’s destructive,” Bradshaw remarked, his frustration with the revised inheritance tax law evident.
Bradshaw also highlighted the breakdown of a historic agreement going back to World War Two, therefore drawing attention to the strained relationship between farmers and the government. “We would love to pay more tax,” he said, “but right now the supply chain does not provide us the returns needed to save the money to pay the inheritance tax this government now wants to take.”
What Are the Struggles of Modern Farmers?
In recent years, farmers have had a growing financial strain. While food, fuel, and fertiliser prices continue to soar at a rate much above what farmers can charge for their goods, costs for pig farming have increased by 54%, cattle by 44%, and cereal by 43%. Government subsidies have also been dropping following Brexit, therefore further stressing farm revenues.
Bradshaw underlined that although official studies show the typical farm made a profit of £45,300 last year, this figure is probably overstated since it ignores the farmers most in difficulty. He also questioned the government’s projection that just 500 of the richest estates would be impacted by the revisions, contending that up to 70,000 farms would possibly be subject to significant inheritance tax liability.
What Are Farmers' Concerns About the Tax Impact on Their Estates?
David Barton, a Gloucestershire cattle farmer whose family has held a farm since 1913, among the demonstrators Barton, whose company is worth roughly £5m, voiced great worry about how the tax changes would affect his family. Although he feared he might not have the financial means to cease working if he were to do so, Barton said, “This budget has just ripped the heart out of us.” He may have to consider gifting his fortune to avoid paying the inheritance tax.
Others demonstrating also expressed similar worries. Yorkshire’s seventh-generation farmer Jen said her family would have an inheritance tax bill of £1.2 million. “If the budget passes, that means I won’t be able to take over my family farm as, between my brother and me, we would have to sell up to be able to pay the tax. From our early years, both of us have been driven by something.
How Is the Government Responding to Farmers' Concerns?
Prime Minister Rishi Sunak defended the suggested reforms in the face of widespread demonstrations, arguing they would not impact most farmers. Emphasising that the government is dedicated to helping rural areas, he stated, “The vast majority of farms will be unaffected by the changes.” Along with improvements in sectors like hospitals and homes that affect rural communities, he also pointed out £5 billion in financing for agricultural and food sustainability.
Leader of the opposition Labour Party Sir Keir Starmer admitted farmers’ worries but also voiced hope that most farms would not suffer from the tax reforms. Offering comfort that the government’s policy was fair and balanced, Starmer said, “It’s only farms and assets over £3m in a typical case of parents wanting to pass on to their children.”
What Are the Political Divisions Over the Proposal?
Although the administration insists the tax adjustments are equitable, political leaders of all stripes have expressed disapproval. Declaring it the “family farms tax” and warning that it would “destroy farming as we know it,” Conservative Party leader Kemi Badenoch promised to undo the tax.
The Liberal Democrats have attacked the government’s projection that only 500 estates will be impacted annually, with party environment spokesman Tim Farron charging it of undervaluation of the potential number of farms impacted. “People only pay the inheritance tax by selling the farm; so, corporates buy it. Farron stated, “It’s cruel, unfair, and also quite stupid.”
What Does the Future Hold for Farmers Amid the Proposed Changes?
Farmers’ and sympathisers’ demonstrations keep rising while the administration sticks by its choice. The argument over inheritance tax reforms is far from finished; many advocate a review of the idea to guarantee that financial constraints do not compromise the future of family farming in the UK. The issue still is whether the government would change its policy or carry out its intention to apply the tax adjustments in 2026.
