Farmers across northern England are voicing strong opposition to proposed changes to inheritance tax relief, which they argue could devastate the rural economy and force many younger farmers out of the industry.
Around 50 protesters gathered outside the Northern Farming Conference in Hexham, Northumberland, to voice their concerns directly to Rural Affairs Minister Daniel Zeichner.
The changes, outlined in Chancellor Rachel Reeves’ recent Budget announcement, include a 20% inheritance tax on agricultural assets exceeding £1 million.
While Reeves has suggested that in some cases the threshold may be closer to £3 million, the proposed alterations have sparked fears that family farms will no longer be able to pass down the generations without crippling tax burdens.
Andrew Moralee, a farmer from Willington, County Durham, and one of the protestors, shared his concern, saying, “I’m here because I’d like to hand the land to my son, but these changes will make that very hard.”
Moralee, who farms 500 acres alongside his son Jack, explained that the tax increase could push younger generations away from farming. “This inheritance tax change is going to be a real issue for us,” he said. “It’ll mean young people leave the industry.”
Farming advocates argue that the tax hike would impact more than just the wealthiest landowners, highlighting the plight of smaller family farms with low incomes but high land values. Simon Bainbridge, a farmer from Northumberland, who attended the conference, emphasized the financial strain of recent years.
“Farmers have already endured two poor harvests,” he said, adding that reduced financial support was exacerbating the difficulties. “It feels like an attack on all sides.”
In response, Chancellor Reeves defended the reforms, stating that maintaining the current system was no longer “affordable” for the government.
According to the Budget documents, the government is seeking to restrict the “generosity” of agricultural property relief (APR) and business property relief (BPR) for the wealthiest estates, claiming that only the country’s 500 largest estates would be affected.
However, critics argue that even farms of modest size would struggle under the proposed tax changes.
Mark Mather, a tenant farmer from Northumberland, voiced similar concerns. “These changes will leave the poorest buying sub-standard food that’s come halfway across the world,” he said.
Mather, who also serves as a Conservative councillor for Wooler, highlighted the challenges faced by farmers in rural areas, especially in light of shrinking support.
Rural communities have been hit hard in recent years, with hill farm incomes plummeting by 41% in the last five years, according to Liberal Democrat environment spokesman Tim Farron.
Farron, the MP for Westmorland and Lonsdale, a rural constituency in Cumbria, argued that the tax changes would lead to the breakup of family farms.
“The majority of people this will hit run what we would refer to as small family farms,” he explained. “Huge acreage, with value in the farm buildings, but tiny incomes.”
Despite the backlash, Minister Zeichner defended the government’s stance. Speaking at the conference, he pointed to a “record” £500 million farming budget for the next two years, claiming that it would fund services like rural crime prevention and health improvements for rural communities.
However, for many farmers, these measures may not be enough to offset the financial challenges posed by the inheritance tax changes.
As tensions continue to rise, it is clear that the inheritance tax reforms are a flashpoint for rural communities, with many farmers fearing that the changes could have long-term consequences for the future of family-run agriculture in the UK.
