Thousands of farms across Britain have been condemned to extinction today by Rachel Reeves’ budget in what has been labelled the ‘death knell for family farms.’
The Labour Chancellor’s budget has effectively scrapped the relief farmers enjoyed from inheritance tax when their farms passed to their children after their death.
Farmers will now have to pay 20 per cent tax on assets over £1 million, meaning a huge tax bill many will be unable to fund from farm income as farms tend to be asset rich but cash poor.
As a result, farmers will be forced to sell chunks of land to foot the tax bill, breaking up land that has been passing down through families for generations, damaging the fabric of Britain’s countryside and worsening our food security.
Olly Harrison, a cereal farmer near Liverpool, told GB News this morning: “If I find out today that I’ve worked all my life to hand my farm down to my kids only for someone who thinks they’re Robin f**king Hood to take it all away, I’ll be the first to drive my tractor down to London.”
Kirstie Allsopp, the TV presenter, said: “Rachel Reeves had f**ked all farmers, she has destroyed their ability to pass farms on to their children, and broken the future of all our great estates, it is an appalling decisions which shows the government has ZERO understanding of the what matters to rural voters.”
Rupert Lowe, a Reform MP, said: “Labour’s policy on Agricultural Property Relief is catastrophic for farming investment/continuity.
“Small family farms will be forced to sell when a death occurs. Has the Govt actually spoken to farmers?
“I will request a rethink and full consultation with the farming community.”
Government statistics show 17% of UK farms failed to make a profit in 2022/23, while 59% made a profit of less than £50,000, leaving little scope to pay inheritance tax out of farm income.
With the price of land high in Britain, it will only take about 60 or 70 acres to trigger the £1 million threshold and incur inheritance tax, according to No Farms No Food.
Di Clements, a dairy farmer in southwest Wales, said of Labour potentially scrapping APR: “This would be the final straw for many family farms and have fatal consequences for rural Britain and our food security.
“We always knew Labour never cared for farmers, but if the chancellor does this she will have proved us right.”
Rachel Reeves announced her momentous budget this afternoon to a raucous chamber. It included £40billion worth of tax rises.
On inheritance taxes applied to farms, the Chancellor said: “We will reform agricultural property relief and business property relief.
“From April 2026, the first £1 million of combined business and agricultural assets will continue to attract no inheritance tax at all, but for assets over £1 million, inheritance tax will apply with 50% relief, at an effective rate of 20%.”
