On a chilly Tuesday morning, thousands of UK farmers gathered outside Parliament, sending a powerful message to the government about a tax reform they claim could devastate family farms across the country. With banners, bullhorns, and even toy tractors, these farmers voiced their frustration over the government’s decision to end a decades-old inheritance tax break for agricultural properties. The backlash was swift, with protestors warning that the change could be the final blow to a sector already under pressure.
As the protests escalated, many farmers vowed to take even stronger action if the government doesn’t reconsider. In this post, we’ll dive into what the inheritance tax hike means for the future of British farming and why it’s become such a flashpoint for rural communities.
The Inheritance Tax Change: Why Farmers Are Furious
The UK government’s controversial decision to scrap a tax break on agricultural properties has sparked widespread protests, but what exactly is the issue?
Currently, agricultural property in the UK is exempt from inheritance tax, a break that has been in place since the 1990s. This exemption has allowed family farms to pass down through generations without the crushing burden of inheritance tax. However, the government’s recent budget announced a significant change: From April 2026, farms worth more than £1 million ($1.3 million) will face a 20% inheritance tax when passed on to the next generation.
For many family-run farms, this move feels like a betrayal. Olly Harrison, a fifth-generation farmer from near Liverpool, said that the tax hike could “destroy” his ability to keep the farm running, a sentiment shared by many in the industry. He added that the only thing that’s kept him going has been the hope of passing the farm on to his children. Now, that hope is on the brink of being taken away.
The Farmers’ Fight: Why This Tax Hike Hurts
The inheritance tax change has ignited a broader debate about the future of British farming. Here’s why so many farmers feel this policy could push them to the brink:
1. High Property Values, Low Profits
While farmland has become increasingly expensive, many farms operate on razor-thin margins. Most British farmers don’t see the huge profits that high land values suggest. For example, grazing livestock farms had an average income of just £17,000 ($21,000) in the year ending February 2024—far below what would be needed to cover a 20% inheritance tax bill.
2. The Final Straw
The UK farming sector has already been battered by a decade of volatility. From Brexit’s impact on trade deals to the ongoing pressure from unpredictable weather, farmers have faced relentless challenges. Many feel that the inheritance tax hike is simply the “final straw” in a long line of financial pressures that have already left them struggling.
As David Exwood, Deputy President of the National Farmers’ Union (NFU), pointed out, this policy is part of a long list of tough choices and broken promises. Farmers are tired of the constant uphill battle, and this tax change has only intensified their frustration.
3. A Fight for Family Farms
For farmers, this isn’t just a financial issue—it’s about the survival of family farms. The emotional toll of potentially losing the ability to pass down a farm to the next generation is immense. Many farmers are worried that this tax will force them to sell their land just to cover the costs, potentially leading to the end of multi-generational farming in the UK.
The Public Protests: Farmers Take to the Streets
The frustration was palpable as thousands of farmers descended on London. The protest, organised by the National Farmers’ Union (NFU), was one of the largest of its kind in recent years. Farmers from across the UK, many dressed in the familiar countryside uniform of Barbour jackets, stood shoulder to shoulder, holding placards reading, “No Farmers, No Food” and “Stand with a Farmer, Not Starmer.”
In an unusual move, the protestors even brought toy tractors and made it clear they were prepared to escalate their actions if the government doesn’t listen. Some protestors were already calling for more dramatic demonstrations, drawing comparisons to the large-scale protests seen in France, where farmers have frequently used roadblocks and disruptive tactics to voice their anger. The protest on Parliament Square was peaceful, but the message was clear: The farming community feels they’ve been ignored for too long.
The Government’s Response: Who Will Benefit from the Tax?
Despite the overwhelming outcry from farmers, the government has remained firm in its stance. The Treasury argues that the inheritance tax hike will only affect the wealthiest 25% of farms, which are valued over £1 million ($1.3 million). In fact, it claims that many farming estates can still benefit from various loopholes, allowing them to pass down estates worth up to £3 million ($3.9 million) tax-free.
Supporters of the tax argue that it will target wealthy investors who have bought farmland as a way to avoid paying inheritance tax on other forms of wealth. According to Steve Reed, Environment Secretary, the tax change will help rein in the rising cost of farmland, which has increasingly been driven by investment firms and high-net-worth individuals buying agricultural land as a long-term asset.
What’s Next for UK Farmers?
So, what happens now? Farmers are not backing down, and the protests in London were just the beginning. The NFU has vowed to continue its campaign and has called for more politicians to stand with farmers. Meanwhile, opposition parties, including the Conservative Party and Reform UK, have rallied behind the farmers, condemning the tax hike as a betrayal of rural communities.
If the government does not reconsider, we may see even more intense protests, with farmers from across the UK making their voices heard.
Conclusion: The Fight for Family Farms Continues
The battle over the inheritance tax hike is far from over. With the deadline for the policy change set for 2026, farmers still have time to lobby the government and ensure their concerns are heard. But the pressure is mounting, and many are warning that the survival of family farms in the UK is at risk.
The next few years will be critical in determining the future of farming in Britain. If the government doesn’t listen to the farmers’ pleas, the very fabric of rural life in the UK could be in jeopardy.
