Farmers across the UK are outraged after Treasury officials dismissed industry-backed alternatives to the controversial inheritance tax reforms. With thousands of family farms at risk, leaders warn that the policy could force land sales and disrupt food production.
The UK’s farming community is in uproar following a tense meeting with Treasury officials, where ministers refused to reconsider controversial changes to inheritance tax (IHT) on agricultural property. Farming leaders, who had hoped for constructive dialogue, left Westminster with what they described as “boiling blood” after their proposed alternatives were dismissed outright.
The government’s planned reforms, set to take effect in April 2026, will impose a 20% inheritance tax on farms valued over £1 million, scrapping long-standing exemptions that have traditionally allowed family farms to pass from one generation to the next without financial penalties. Treasury officials argue that the policy is necessary to generate funds for public services, including the NHS, but farmers warn it could devastate the industry, forcing asset-rich, cash-poor families to sell their land.
The discussions, which involved representatives from the National Farmers’ Union (NFU), the Tenant Farmers Association (TFA), the Country Land and Business Association (CLA), and the Central Association of Agricultural Valuers (CAAV), among others, quickly soured. Exchequer Secretary James Murray and farming minister Daniel Zeichner stood firm, rejecting proposals such as a ‘clawback mechanism’ that would have ensured IHT was only levied when farms were sold, rather than inherited.
NFU president Tom Bradshaw did not mince words following the meeting, stating:
“The Government resolutely believes it is right and that the exemptions provided are generous. They don’t care about the human impact, the intergenerational impact, or the future of food security in Britain.”
George Dunn, TFA chief executive, was equally scathing, describing the meeting as “one of the most unproductive” in his 28 years in the sector.
“They were unprepared, unwilling, and arrogant enough to say: ‘We’ve done all the thinking. We’re not making any changes.’”
The backlash has not been limited to farmers. The CLA estimates that up to 70,000 UK farms could be affected, including those as small as 100 acres. The policy has also drawn criticism from the independent Office for Budget Responsibility, tax advisors, major food retailers, and even the Efra Select Committee, which has warned of its detrimental impact on UK food security.
Victoria Vyvyan, CLA president, accused the government of ideological stubbornness:
“The Treasury was simply going through the motions and showed no interest in farming or family businesses. This inheritance tax policy is already damaging the economy and could ultimately reduce tax revenues.”
Industry experts fear the policy will accelerate the decline of family-owned farms, reducing UK food production at a time of growing geopolitical uncertainty. The NFU has repeatedly stressed that food security is national security, a point seemingly lost on Treasury officials.
Bradshaw warned that if the government refuses to engage, the consequences will be severe:
“For the 70 million people on this island, food security matters. If this policy goes ahead, it will place our food supply at risk. The government has not even carried out an impact assessment—it is simply ploughing ahead regardless.”
With the Treasury refusing to budge, farming leaders are now turning their attention to Parliament, aiming to rally political support for a vote against the Finance Bill later this year. They are particularly focused on persuading backbench MPs to break ranks with the government.
Meanwhile, public protests are expected to intensify. In recent weeks, hundreds of tractors have blocked Whitehall in opposition to the IHT changes. Farmers are now contemplating further action, though Bradshaw emphasized the need to maintain public support:
“We must keep public support at all costs. Political pressure will be our way through this.”
Despite the fierce opposition, the government remains defiant. A Treasury spokesperson defended the policy, stating:
“Our reforms to Agricultural and Business Property Relief will mean three-quarters of estates will continue to pay no inheritance tax at all, while the remaining quarter will pay half the inheritance tax most businesses pay. This is a fair and balanced approach, which ensures we can fix the public services we all rely on.”
Labour’s rationale that the £500 million raised will support the NHS has also come under scrutiny. Critics point out that this sum would fund the health service for just one day, making the justification “disingenuous” at best.
As things stand, the Treasury’s rigid stance has left farmers feeling unheard and unsupported. The NFU and other agricultural groups are determined to fight on, warning that the long-term damage to British farming could be irreversible.
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