Labor inheritance tax reforms ‘threaten the fabric of the countryside’

Jeremy Clarkson and the National Farmers Union (NFU) have attacked the Labor Party for failing to deliver on its farm aid promises.

Inheritance tax changes The plans announced in the Budget will contribute to the break-up of family businesses and “threaten the fabric of the countryside”, experts say in an attack on Labour’s latest revenue-raising plans.

In yesterday’s Budget, the Chancellor announced a major overhaul of the inheritance tax system, including changes to relief allowing agricultural land to be transferred tax-free.

From April 2026, only the first £1 million of agricultural land value will be exempt from inheritance tax. Above that threshold, the exemption drops to 50 percent.

This means that inheritance tax will be charged on the full value of farms and estates above £1 million, at an effective rate of 20 per cent.

Reeves claimed the changes would “continue to protect small family farms,” estimating that three-quarters of properties would be exempt. But the decision attracted a lot of criticism from experts.

James Farrell, partner and head of rural consultancy at Knight Frank, said the £1 million threshold was “pretty meaningless” given the level of capital being used in farms and small businesses across the country.

“(The) changes threaten the fabric of the countryside and the communities that for generations have been the stewards of the land on which we all depend for our daily existence.”

“Farms and estates will have to sell land or property to pay inheritance tax, putting all these critical intentions at risk and adding a further challenge to many already beleaguered rural communities,” he said.

Also the National Farmers’ Union (NFU). rejected the decisionwarning that this would contribute to lower domestic production and higher prices.

“Just because a farm is a valuable asset does not mean those who work on it are rich,” says Tom Bradshaw, chairman of the NFU.

“Let’s not sugar-coat this: every penny the Chancellor saves from this will come directly from the next generation having to break up their family farm.”

Bradshaw said the government’s “blatant” broken promises will “take away a huge part of the next generation’s ability to continue producing British food”.

Steve Reed, the Environment Secretary, had previously said the government had “no intention” of changing the lighting.

“If you look farmers in the eye and make them a promise, keep it,” Bradshaw said.

Jeremy Clarkson, who owns a 1,000-hectare farm in Oxfordshire, said farmers have been “cheated” by the tax change.

‘But please don’t despair. Just take care of yourself for five years and this mood will be over,” he posted on X.