On Monday, 10 February 2025, central London became the epicentre of a significant demonstration as hundreds of farmers gathered in Whitehall to protest the government's proposed changes to inheritance tax laws affecting agricultural properties.
Organised by the campaign group Save British Farming, the protest featured a procession of tractors and even tanks, causing considerable disruption in the heart of the capital.
The contentious policy, announced in the October 2024 Budget by Chancellor Rachel Reeves, plans to introduce a 20% inheritance tax on farms valued over £1 million, effective from April 2026. Previously, agricultural properties benefited from a 100% relief, allowing family farms to be passed down through generations without incurring tax liabilities.
The government argues that this change is necessary to address a £22 billion fiscal deficit and to prevent wealthy individuals from exploiting agricultural land for tax avoidance.
Farmers, however, contend that the new tax will force them to sell portions of their land to meet the financial demands, thereby threatening the viability of family-run farms. Tom Lucas, a 16-year-old farmer from Cambridgeshire, exemplified the dedication and concern of the farming community by driving his 1970 Massey Ferguson tractor for eight hours to join the protest. He expressed his fears, stating, "If I want to take over our little family farm, which is 130 acres, then I'll have to find quite a lot of money... It is heartbreaking."
The demonstration garnered support from various quarters, including major supermarkets such as Tesco and Lidl, which have backed the National Farmers Union's call to reverse the policy. They have voiced concerns about the negative impact on smaller farms, future food security, and investment in the British food system.
In Parliament, MPs debated an e-petition with more than 148,000 signatures, urging the government to maintain the current inheritance tax exemptions for working farms. Labour backbenchers have called for "meaningful tweaks" to the proposed policy, acknowledging the unique challenges faced by the farming community. Sam Rushworth, Labour MP for North Northumberland, highlighted that few farms in his constituency would fall below the £1 million threshold, adding that "raising the threshold would provide instant peace of mind to family farmers."
Despite the mounting pressure, the government remains steadfast in its stance. Environment Secretary Steve Reed defended the tax changes as a measure to counter wealthy investors using agricultural land for tax avoidance, stating it had become "the most effective way for the super rich to avoid paying their inheritance tax."
The protest underscored the deepening divide between the government and the farming community. As tractors lined the streets of Westminster and farmers voiced their concerns, the message was clear: the proposed inheritance tax changes are seen not just as a financial burden, but as a threat to a way of life that has sustained British agriculture for generations.
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