A Growing Divide: Farmers and Government Clash Over Tax Changes Amidst Inflation

The rift between farmers and the government remains deep, even with a significant £2.7 billion boost to agriculture announced in a recent spending review. Tom Bradshaw, president of the National Farmers’ Union (NFU) and a farmer from Essex, has voiced strong concerns over the impact of proposed changes to inheritance tax on agricultural land, citing them as a ”very real threat” to farming businesses. He claims that these tax changes, set to take effect in April 2026, will impose a 20% inheritance tax on inherited agricultural assets exceeding £1 million, reversing previous exemptions.

Bradshaw emphasizes the human impact of this policy, declaring it ”simply not acceptable” and a barrier to mending the relationship between farmers and the government. He argues for a balanced investment focus on both food security and land management, especially in light of increasing global insecurity. According to him, farmers are actively investing in infrastructure, but government hesitation on reform and investment is damaging their future viability.

Despite these concerns, the government maintains that food security is pivotal. Farming minister Daniel Zeichner MP affirmed the commitment to farming, highlighting the increased funding for sustainable practices and emphasizing the need for further support to food producers. However, there is fierce contention regarding the impact of the tax changes. Estimates from farmers’ groups suggest it could negatively affect up to 70,000 farms, though government figures dispute this, suggesting about 500 estates would be impacted annually.

Farmers criticize the government’s reliance on flawed data, and the debate continues as groups push back against what they see as detrimental policy changes. As the situation unfolds, the rift may widen unless further dialogues can address the farmers’ concerns on taxation and investment.