Rachel Reeves Tells Farmers There Will Be No U-Turn On Inheritance Tax Changes

Rachel Reeves has warned farmers preparing to take part in a mass anti-government protest that there will be no U-turn on controversial changes to inheritance tax rules.

The chancellor announced in last month’s Budget that farms worth more than £1 million which are handed down to a family member after the owner dies will be subject to 20% inheritance tax rather than zero, as is the case at present.

Farmers say that will put many of them out of business, and will make their feelings known at a lobby of MPs in Westminster on Tuesday, which has been organised by the National Farmers’ Union.

Thousands more are expected to join a separate rally in Whitehall.

Celebrities including TV presenter and farmer Jeremy Clarkson – who told The Times in 2021 that avoiding inheritance tax was “critical” in his decision to buy land – are expected to join the rally.

But in a joint-statement with rural affairs secretary Steve Reed ahead of the demos, Reeves said: “With public services crumbling and a £22 billion fiscal hole that this government inherited, we have taken difficult decisions.   

“The reforms to agricultural property relief ensure that wealthier estates and the most valuable farms pay their fair share to invest in our schools and health services that farmers and families in rural communities rely on.”

The pair said farmers were “the backbone of Britain”, and said the government is investing £5 billion into farming over the next two years.

But NFU president Tom Bradshaw said: “There’s a complete disillusionment and distrust, and feeling of betrayal, that [the government] doesn’t understand food production or even want to understand food production.

“Farmers are cross, they’re worried, they feel they’ve nothing to lose, I don’t know where this ends. I don’t believe the government have any choice but to rethink this policy.”