Farmers across the UK are expressing their frustration with the government’s inheritance tax reforms. They showed up in town centers with their tractors to protest during a National Day of Unity.
The Treasury expects these changes, announced in last October’s budget, to generate up to £520 million annually. However, farmers and advocacy groups warn that these reforms could threaten family farms that have been passed down for generations, potentially harming the entire agricultural industry.
On this protest day, participants brought food, tractors, and livestock to demonstrate in cities and towns throughout the UK.
The protest was organized by the National Farmers Union (NFU). A day earlier, NFU leaders handed over a petition with over 270,000 signatures to government officials, urging them to reconsider what they call a “devastating family farm tax.”
NFU president Tom Bradshaw raised alarms about possible food shortages if farmers resort to striking in response to the reforms.
The protests took place in various locations, including Cambridge and Selby in North Yorkshire, and the focus was on increasing public awareness. An NFU spokesperson commented, “It’s about showing appreciation for public support and reminding people that our challenges continue.”
They also expressed a desire to discuss the decisions made by Chancellor Rachel Reeves and seek a review of the reforms.
What are the proposed changes to inheritance tax for farmers?
For decades, since 1984, farmers and owners of agricultural land have benefited from inheritance tax relief. There are two main types: Agricultural Property Relief (APR) covers land and buildings, while Business Property Relief (BPR) applies to assets like livestock and farming machinery.
Starting in 2026, these 100% reliefs will end. A new structure will provide limited relief of £1 million, with an additional £500,000 possible for farmers. If a farm is co-owned by a couple, this relief can increase to £3 million. Any excess tax owed will be at a rate of 20%, significantly lower than the standard 40%.
Livestock farmer Rachel Hallos, who attended the protest, hopes that the events will shine a light on how these changes could undermine farming operations. She worries that the government’s priorities are not in line with the needs of food production and the environment.
In Northern Ireland, the Ulster Farmers Union also organized protests, including a significant display of tractors in Derry/Londonderry, featuring slogans like “Save Our Family Farms.”
During a conference, Environment Secretary Steve Reed mentioned that a healthy environment is crucial for food production. He committed to collaborating with farmers to adopt more eco-friendly practices.
Additionally, a government spokesperson outlined plans to invest £5 billion in farming over the next two years, the largest budget ever for sustainable food production in the UK. They stated that reforms to the Agricultural and Business Property Relief would reduce the effective tax rate, supporting farmers and aiming to benefit around 500 estates annually.
