Farmers across the UK are furious at the news that farm inheritance tax relief will be limited to £1m.
The National Farmers’ Union said it was a “catastrophic budget” for family farms that would “take away the ability of the next generation to continue producing Britain’s food” and result in farmers being forced to sell their land to pay tax.
Many took to social media to express their frustration, with broadcasters Jeremy Clarkson and Kirstie Allsopp also saying the decision showed the government’s ” There is little understanding of the importance of rural voters”.
The government said it remained committed to supporting farmers and “the vital role they play in feeding our country”.
In Wednesday’s Budget, the Chancellor announced that while business and agricultural assets worth less than £1 million will continue to be exempt from inheritance tax, assets over that amount will be reduced by 50%, with an effective tax rate of 20%.
Over the years, APR tax credits have allowed small family farms – including land used to grow crops or raise animals, as well as farm buildings, cabins and houses – to be passed down from generation to generation.
Somerset farmer Richard Payne told the BBC he had told his son to consider a career outside farming because inheritance tax would make the industry “completely unviable”.
He added that the £1 million limit would only apply to the smallest farms, a change that could lead to more land being purchased by larger businesses, changing the future shape of British farming.
“Things are going to change dramatically in this land. Everyone says they don’t like big farms and they don’t want factory farming, but I think this is going to be one of the answers to all of this,” he explained .
Somerset farmer Holly Purdey, vice-president of England’s Nature-Friendly Farming Network, said “longevity and a generational mindset” were often key motivators for farmers to care for their land, but this drive may disappear.
However, she added that the forced sale of land on large farms due to changes in tax breaks could help bring more newcomers into farming.
On X, many farmers said the decision would spell the end of small family farms.
Jeremy Clarkson, host of the TV show Clarkson’s Farm, posted a message telling farmers not to despair but that “in just five short years of looking after yourselves this shower will be gone”.
Broadcaster Kirstie Allsopp said the chancellor had destroyed farmers’ ability to “pass their farms on to their children and grandchildren and undermined the future of all our great estates”.
She added: “This is a shocking decision that shows the government has zero understanding of the importance of rural voters.”
Steve Barclay, the shadow secretary of state for rural affairs, said on X that Labor had “broken their clear commitments to farmers” by changing tax breaks.
Rural Land and Business Association president Victoria Vyvyan said the change was “nothing short of a betrayal” and as Secretary of State Steve Reed said last year: “We have no intention of changing the APR.”
She added that an estimated 70,000 farms could be adversely affected by the £1 million cap: “This has a huge impact on the livelihoods of British farming and is hampering growth and investment.”
NFU president Tom Bradshaw said: “This is a devastating budget for family farmers.
“Shamelessly breaking clear commitments on agricultural property relief will deprive the next generation of the ability to continue to produce Britain’s food, plan for the future and protect the environment.”
But the government said the change was expected to affect only about 2,000 estates each year.
Following Wednesday’s budget announcement, the government said it would maintain England’s £2.4 billion agriculture budget for 2025/26.
“Our commitment to farmers and the important role they play in feeding our country remains unwavering,” said Food Security Minister Daniel Zeichner.
