Farmers demonstrate in London over revised inheritance tax rules

Thousands of individuals have staged a protest in London concerning modifications to inheritance tax for farmers, which were revealed in the Budget statement. Notable participants marching in Whitehall included TV presenter Jeremy Clarkson, who declared “it’s the end” for farmers, as he urged the government to reconsider its stance. The prime minister expressed understanding of farmers’ worries and affirmed he “wants to support” them, but noted that “the vast majority” would remain unaffected. Commencing April 2026, inherited agricultural assets valued over £1m, previously exempt, will become subject to the levy at 20% – representing 50% of the standard inheritance tax charge. Additional exemptions might allow a couple who are married or in a civil partnership to transfer an agricultural property valued up to £3m. However, numerous farmers contend that despite possessing substantial assets, such as land and livestock, they lack sufficient liquid funds, and these alterations would necessitate selling off assets to cover the tax liability. Prior to the demonstration, approximately 1,800 National Farmers’ Union (NFU) members convened close to Parliament for a large-scale lobbying effort targeting Members of Parliament. The group’s president, Tom Bradshaw, delivered an fervent address, characterizing the tax changes as destructive, a “stab in the back” for farmers, wrong, and unacceptable. He informed the demonstrators that the changes were the “straw that broke the camel’s back”. In a subsequent interview with Sky News, he stated that Labour had “destroyed” a “contract” between farming and the government originating from World War Two. “We’d love to pay more tax,” Mr Bradshaw added. “If we get proper margins from food production, and we end up swelling the Treasury coffers, bring it on.” He continued, “But at the moment the supply chain doesn’t give us those returns that enables us to save the money to pay the inheritance tax that this government now wants to take.” He further noted that Environment Secretary Steve Reed had previously stated, during his time in opposition, that Labour would not change agricultural property relief. Since 2019, expenses for pig farming have escalated by 54%, cattle by 44%, and cereal by 43%, as food, fuel, and fertiliser prices are climbing at a pace significantly exceeding the price increases farmers can implement for their produce. Agricultural subsidies have also seen a reduction since Brexit. Official government studies indicate that an average farm last year generated an approximate profit of £45,300 – however, this amount might be inflated since it stems from a survey that omitted the least profitable agricultural enterprises. The precise count of the UK’s 210,000 farms potentially impacted by the inheritance tax revision remains contentious. The government asserts it will impact the wealthiest 500 estates each year, but the NFU and the Country Land and Business Association (CLA) have projected that as many as 70,000 farms, each valued over £1m, might be impacted. From 2021 to 2022, 117 farms exceeding £2.5m in value were passed on through inheritance. On Tuesday, Reed informed the Commons Rural Affairs Committee that numerous farmers demonstrating against the tax adjustments held “incorrect” views regarding the policy – and he dismissed assertions that the government had miscalculated the number of individuals who would be impacted. He remarked: “Many of them, probably happily, are wrong because there are things that they can do to plan their tax affairs as most businesses or asset owners would do to limit their liability.” He said: “The numbers I’ve heard bandied around are enormous and very, very frightening if people were to believe them.” He conceded that the modifications would be “unsettling” and affirmed he was “listening” to the anxieties, yet maintained that the majority of farmers would not experience an increase. Present at Tuesday’s gatherings was Gloucestershire livestock farmer David Barton, who assesses his enterprise – which has been in the family since 1913 – to be valued at approximately £5m in assets, but states it yields limited annual profit. Mr Barton expressed apprehension that the suggested inheritance tax revisions might result in his son confronting an £800,000 charge and said the Budget “has just ripped the heart out of us”. He is currently contemplating transferring his estate as a gift, a move he thinks would exempt it from inheritance tax if he survives for seven years, yet worried he lacked the financial means to cease employment. Other demonstrators indicated they would be compelled to liquidate their farms to settle tax obligations. Jen, a seventh-generation farmer from Yorkshire, who did not provide her surname, informed the PA news agency: “If the Budget goes through, then that means I won’t be able to take her over my family farm because between me and my brother, we would have to sell up to be able to pay the tax.” She added: “It’s something we’ve both been passionate about from when we were little kids, ever since we could walk, always been involved – it’s a lifestyle.” The 24-year-old indicated that they would owe around £1.2m. “We have spoken to our accountant, solicitors, and once something happens to our parents – unless there is some change, unless there’s something we can do – then it’s not possible for us,” she said. Jeremy Clarkson, who owns Diddly Squat Farm in Oxfordshire – which features in the Amazon series Clarkson’s Farm – expressed his belief that the inheritance tax alteration constituted “a very rushed last-minute decision”. He commented: “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.” BBC Newsnight’s Victoria Derbyshire questioned Mr Clarkson at the demonstration regarding his reason for participating in the rally: “So, it’s not about you, it’s not about your farm and the fact you bought a farm to avoid inheritance tax?” Describing the inquiry as “Classic BBC”, Mr Clarkson said: “I wanted to shoot… which comes with the benefit of not having to pay inheritance tax. Now I do. But people like me will simply put it [money] in a trust.” He continued: “And so long as I live for seven years, that’s fine… But it’s incredibly time consuming to have to do that. And why should all these people have to do that? Why should they?” The regulations governing inheritance tax imply that the sum individuals are obligated to pay can differ. Addressing media representatives from the G20 summit in Rio de Janeiro, the prime minister asserted that the “vast majority” of agricultural properties would remain “unaffected” by the Budget modifications. Sir Keir Starmer – who emphasized his upbringing in a rural setting – stated he “gets” the worries of farmers and mentioned that the government was utilizing the Budget to allocate funds to other sectors impacting rural communities, such as hospitals, schools, and housing. He said: “I think it’s very important for me to keep making the case that it’s only farms and assets over £3m in a typical case of parents wanting to pass on to their children, and therefore, for that reason, I’m confident that the vast majority of farms will not be affected.” He noted that £5bn had been committed across two years “in farming and food sustainability. That’s hugely important for farmers, an additional amount for flooding that impacts them and on disease outbreak”. In response to an inquiry about whether the government would review the policy, the official spokesperson for the prime minister responded: “No – we have set out the reasons we have taken this difficult decision and why we believe it’s a fair and proportional approach.” Just prior to the conclusion of the demonstration, Conservative Party leader Kemi Badenoch ascended the stage amidst enthusiastic applause, where she vowed to overturn what she termed “the family farms tax”, a measure she claimed would “destroy farming as we know it”. The Liberal Democrats dismissed as “utter rubbish” the assertion that only 500 of the UK’s wealthiest farmers’ estates would be affected each year. Tim Farron, the party’s environment spokesperson, informed the BBC: “The only way that people can pay the inheritance is get rid of the farm – so corporates buy it.” He added: “It’s cruel, it’s unfair, it’s also incredibly stupid”.