Farmers Protest Inheritance Tax Changes, Warning of Business Closures

A farmer participating in a widespread protest against Budget modifications to inheritance tax asserts that some family-owned farms could face being “put out of business.” Dozens of farmers from the North East and Cumbria are traveling to London to demonstrate against proposals announced last month. Among those is Simon Bainbridge, from Northumberland, who stated: “My parents built our farm up from nothing.” A government spokesperson indicated that the administration had inherited a “£22bn fiscal hole” and, with “public services crumbling,” had made a challenging decision to ensure that the relief on inheritance tax remained “fiscally sustainable.” While agricultural land is currently exempt from inheritance tax, starting April 2026, any land valued over £1m will be taxed at a rate of 20% upon the owner’s death, which is half the standard 40% rate. Farmers are also expressing discontent regarding reductions in delinked payments, which are designed to compensate them for the cessation of EU grants. Mr. Bainbridge, who cultivates 1,650 acres (668 hectares) in the village of Cambo, near Wallington, commented: “The land is just a means for each generation to produce food, we never see its value.” Rachel Fife, who operates a tenanted 400-acre (162 hectares) farm with her parents near Chathill, Northumberland, believes the £1m threshold is “too low.” She remarked: “Although as tenants, we are not directly affected, I’m going to London to stand in solidarity.” She added: “We all agree we shouldn’t have millionaires buying up land but the money isn’t there for farming families to pay.” Conservative Mike Starkie, the former Mayor of Copeland, contends that these changes pose an “existential threat” to farmers and the rural way of life. Conversely, Farming Minister Daniel Zeichner has urged farmers to “look calmly” at the government’s plans and maintained that “the vast majority will be fine.” He further stated: “The figures from the Treasury are very clear: under 500 farms a year are likely to be affected.” Daniel Spours, who manages 2,000 acres (810 hectares) at Twizell, near Belford, Northumberland, indicates that other adjustments in the Budget are “hitting farmers hard.” He elaborated: “Reductions in the delinked payments mean this farm is losing £55,000 we were expecting in 2025, just like that.” He continued: “It’s come off the back of two very difficult harvests and lambing and now we’ve got this blow, I just really worry about the future.” A government spokesperson noted that with 40% of Agricultural Property Relief allocated to the 7% wealthiest claimants, this constituted a “fair and balanced approach.” They also stated: “Around 500 claims each year will be impacted and farm-owning couples can pass on up to £3m without paying any inheritance tax.” They concluded: “The £2.4bn announced for the farming budget next year is the largest ever directed at sustainable food production in our country’s history, and there is also £60m for farmers affected by the weather last winter through the Farming Recovery Fund.”