Rachel Reeves has been warned she faces a “humanitarian crisis” in farming if she continues to stand firm on plans to change inheritance tax rules - as thousands march on London for a fresh protest in Westminster on Monday.
The tractor rally, organised by Save British Farming, comes as MPs debate an e-petition with almost 150,000 signatures calling to keep the current tax exemptions for working farms.
Under the chancellor’s plan, a 20 per cent inheritance tax rate will be introduced on farms worth more than £1m - a move farming leaders claim will lead to the closure of many family farms as they urge the government to rethink the policy.
Fears have also been raised over the suicide risk for farmers wanting to avoid the new rules, which come in April 2026.
Liz Webster, founder of Save British Farming, told The Independent: “We are really scared that we are going to see a humanitarian crisis....elderly farmers now know if they die before April next year there will not be a bill for their farm which is unaffordable, the farm would have to be sold or part of it.
“Many of them will think “I don’t want to leave my family burdened with an unaffordable debt, they [my family] will lose their home, their livelihood.
“There are thousands of farmers within this category. That is why we are so animated because you look, in Covid, everyone stayed at home to protect the elderly, and now we have got this in front of us, it’s inhumane what they [Labour government] have done.”
Ms Webster said the change in inheritance tax rules compounded growing pressures faced by farmers such as increased costs, uncertainty over a trade deal with America and a rise in national insurance for employees.
Click here for live updates on the farmers’ protest in London on Monday
She said she would welcome negotiations with Labour ministers, and warned if Ms Reeves did not rethink her plan she would be “directly blamed” for any farmer suicides, adding the chancellor’s post and the party’s position in government were under threat over the policy.
Montgomeryshire and Glyndŵr MP Steve Witherden became the first Labour MP to voice concerns over the plan. He said the changes risked “a deeply detrimental effect on working farms”. Many other newly-elected Labour MPs sitting on rural constituencies have stayed in line, although some have promised to take farmers’ fears to The Treasury.
Farmers told The Independent their concerns over the changes to inheritance tax rules shortly after its announcement last year. Many said they were already struggling to grapple with the government’s new post-Brexit subsidies, which have started to replace direct payments, as well as rising costs in the sector and extreme weather.
Frome Livestock Market’s managing director Bradley Towel said: “Whatever people think about inheritance tax, ultimately, the direction of travel is away from protecting family farms, which are now, frankly, being run by the older generation. There’s a lot of concern about the future.”
Wiltshire farmer Caroline Cunningham said: “They [politicians] just think of farmers as being rich, which just isn’t always the case.
Farmer John Strachan added: “Already many family farms have been sold – this will only see more disappear as the younger generation can’t afford to pay the tax with more land used for things like solar farms.”
Another farmer called Dominic, who did not want to share his full name, said: “It would appear to be a tax intended to restrict wealthy landowners, but in reality it will end up hitting family farms.
“It has completely missed the target. Perhaps they don’t care, they think we are all Tory voters who will never vote for them anyway.”
Away from the market’s cafe, in Herefordshire, farmer Sam Stables runs a charity with a 24/7 mental health helpline for farmers in the county. The 37-year-old tried to take his own life 14 years ago.
“We haven’t seen people hit the panic button yet following the Budget,” he said. “But I fear if things don’t change we will see greater demand.”
Last month a government spokesperson said: “Our reform to Agricultural and Business Property Relief will mean estates will pay a reduced effective inheritance tax rate of 20 per cent, rather than standard 40 per cent, and payments can be spread over 10 years, interest-free.
“This is a fair and balanced approach, which fixes the public services we all rely on, affecting around 500 estates a year.”
If you are experiencing feelings of distress, or are struggling to cope, you can speak to the Samaritans, in confidence, on 116 123 (UK and ROI), email jo@samaritans.org, or visit the Samaritans website to find details of your nearest branch.
This is a free, confidential crisis hotline that is available to everyone 24 hours a day, seven days a week. If you are in another country, you can go to www.befrienders.org to find a helpline near you.
