Farmers say inheritance tax changes will create 'massive' problems for the industry

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Farmers in Cumbria and southern Scotland say inheritance tax changes for agricultural families will create "massive implications" for the future of the industry.

Thousands of people including members of the National Farmers' Union have gathered outside Parliament to protest against the introduction of farming inheritance tax.

A 20% rate was announced by the Chancellor Rachel Reeves in last month's budget.

The tax announcement - set to come in from April 2026 - will apply to combined agricultural and business property worth more than £1m.

An inheritance tax rate of 40% is the standard rate applied to other land and properties.

John Longmire, an Ulverston farmer and Chair of Cumbria NFU, says the policy will 'hurt' families across the UK.

He said: "These proposed changes announced in the budget will create massive implications for family farms. It hurts when they turn round and say they've done this so it does not affect family farming - it's totally untrue.

"There was no consultation on the effect this would have on family farms and ultimately, they said they would not touch it not long before the budget."

Peter Douglas, a farmer from Jedburgh, in the Scottish Borders, says he decided to join the rally in London because he feels "this is one of the final straws" for farming.

He said: "We've all come down because they brought this policy out of the blue, it was not in the manifesto - they have not got a mandate for doing it.

"We provide food, we provide landscape... and we feel like the rugs have been pulled off from under our feet. It feels very emotional, there seems a real togetherness about something that we can all get behind. It's not just the sheep farmers, it's not the poultry farmers - it's our way of life.

"I think this could turn out to be a momentum changer for the countryside," Peter added.

Environment Secretary Steve Reed - appearing before a parliamentary committee - says he rejects farmer's claims that some assets worth less than £1m will be affected.

In an interview with ITV News, he said: “It's only right that we've had to ask the wealthiest landowners and the biggest farms to pay their fair share. I would emphasis only 500 farms will be affected, the vast majority of farmers will pay no more under the new scheme as they do under the current one.

"This government is on the side of farming, we've just allocated £5bn to the industry, that's the biggest budget in our country's history for sustainable farming."


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