Prime Minister invited to Lincolnshire farm amid inheritance tax dispute

A farmer has extended an invitation to the prime minister to tour her property, aiming to demonstrate firsthand the potential effects of inheritance tax rule modifications, which were unveiled in the recent Budget. Commencing April 2026, agricultural assets inherited with a value exceeding £1 million, previously exempt, will become subject to a 20% tax rate, which is half the standard rate. Martha Hayes, a fourth-generation farmer operating in Spridlington, situated north of Lincoln, expressed her desire for Sir Keir Starmer to observe the challenges associated with food production and the narrow profit margins characteristic of family farms. The prime minister stated that he “understands farmers’ concerns” and noted that the government has committed £5 billion to the agricultural sector, in addition to funds designated for addressing flooding and disease outbreaks. These remarks were made during a series of interviews conducted on BBC Local Radio on Friday. Sean Dunderdale, a presenter for BBC Radio Lincolnshire, questioned Sir Keir on various subjects, such as farming, pylons, and solar farms. During this, Ms Hayes inquired whether the prime minister would agree to an independent assessment of the number of farms that would be impacted by the new regulations. The government contends that the current inheritance tax system lacks fairness and sustainability, citing that other individuals with sufficient wealth are taxed at 40%, whereas farmers are not subject to any charge. Ministers further assert that these exemptions have incentivized certain individuals to acquire farmland, thereby inflating its value, predominantly as a means to circumvent inheritance tax. Sir Keir indicated that the modifications would impact only a limited number of family farms, as a standard farm could transfer land and property worth up to £3 million without incurring tax. “It’s not fair” has emerged as a prominent complaint from farmers, anti-pylon and anti-solar farm activists, and pensioners in Lincolnshire. They claim that the county, responsible for a quarter of the nation’s fresh vegetable production, faces being covered by extensive solar farms, pylons, and electricity substations, while family farms might be sold to cover inheritance tax obligations under the new regulations. Campaigners argue that Lincolnshire is being utilized as a “dumping ground,” concurrently with its elderly residents enduring cold conditions, layering clothing due to apprehension about using heating. The prime minister’s concise reply was: “it’s for the greater good”. He asserted that green energy initiatives and pylons would result in reduced energy costs. The prime minister further stated that funds saved by discontinuing winter fuel allowances for affluent pensioners and eliminating all farm tax exemptions are required for schools and hospitals. The government had previously indicated that only 500 of the wealthiest landowners in the UK would be impacted by this alteration. In contrast, the National Farmers’ Union (NFU) projected that as many as 70,000 farms could be affected overall. Ms Hayes raised concerns regarding the discrepancy between the figures provided by the NFU and those from the government. She commented, “You only need to see 20,000 farmers stood on the street on Tuesday to know that the vast majority of farmers are going to be impacted by this change.” “I’d like to invite him to my farm, see the difficulties in producing food, the small margins, and then he might understand the impact this policy will have.” Sir Keir was additionally questioned concerning solar farms, pylons, and winter fuel payments. He noted that elevated energy prices impact all citizens and that the government is compelled to make challenging decisions to help reduce energy costs. Regarding winter fuel payments, the prime minister stated that it “makes sense” to discontinue payments for “relatively wealthy” pensioners and encouraged those requiring assistance to apply for pension credit. He added that the funds conserved would be allocated to finance hospitals and schools.