In a rare and vigorous critique, Tom Bradshaw, president of the National Farmers’ Union (NFU), expressed deep frustration following this week’s budget announcement, stating, “Before the election, Keir Starmer promised to establish a new relationship with farming and the countryside.
Well, he’s certainly done that.” This unprecedented outburst signals a significant shift in the agricultural community’s sentiment, reminiscent of the backlash over unpopular Brexit trade deals.
The catalyst for farmers’ ire lies in the Chancellor’s alterations to Agricultural Property Relief (APR). Environment Secretary Steve Reed had previously assured that Labour would not amend this crucial tax loophole aimed at preserving family farms.
However, the recent announcement from Rachel Reeves revealed that starting April 2026, the initial £1 million of agricultural property value will remain exempt from inheritance tax (IHT).
Above this threshold, combined relief from APR and Business Property Relief (BPR) will drop to 50% of the standard 40% IHT rate, effectively imposing a 20% tax on the full value of farms exceeding £1 million.
Budget cuts threaten nature-friendly farming practices, prompting fears for future food security.Bradshaw condemned this change, emphasizing the impact on farm viability: “When you look farmers in the eye and make them a promise, keep it.”
Contrary to perceptions that this affects only wealthy farms, the Country Land and Business Association estimates around 70,000 farms could be impacted, as many farmers are asset-rich yet cash-poor.
This poses a threat to generational farm continuity, prompting concerns over the future of family-run farms.
Additionally, the farming community faces more challenges as Defra confirmed potential cuts to nature-friendly farming budgets, jeopardizing environmental protections.
The government’s efforts to save £600 million in agricultural spending could lead to intensified farming practices, undermining long-term sustainability.
As the agricultural sector grapples with these changes, the focus remains on the critical need for government accountability in fostering a supportive environment for farmers.