Farmer discontent grows over Labour’s firm IHT position

Fury in the countryside is intensifying over Labour’s proposed changes to farm inheritance tax (IHT), with farmers warning of a “winter of discontent” and fresh mass protests in the pipeline.

Despite calls from within the farming sector and growing unrest in Parliament, the government has shown no signs of backing down ahead of the Autumn Budget on Wednesday 26 November.

Unless amended, the policy will see a 20% levy applied to inherited farm assets over £1m from April 2026 – a move farmers fear will devastate generational family farms and the wider rural economy.

See also: Eagle quashes rumours of ‘family farm tax’ reprieve

Olly Harrison, a Merseyside farmer and organiser of the London tractor rallies, said the mood among farmers had darkened significantly since Defra farming minister Angela Eagle last week ruled out any amendments to the policy in the Budget.

“Farmers are desperate. I can see it is going to be a winter of discontent. Everyone is outraged,” he said.

“Farming is in a worse place now than it was last October, with the weather we have had and the worst harvest for years, cashflow is very low. Plus, we’re getting closer to the April IHT deadline.

“People are getting very, very angry. At the end of the day, they [government] are killing farmers. They are killing the elderly.”

Return to London mooted

Asked whether there was a likelihood that farmers could return to London in their tractors next month, Mr Harrison said: “Without a doubt. I’m sure people are making preparations now.”

Herefordshire farmer Martin Williams, co-organiser of the 10,000-strong London farming rally last November, despite the latest blow, farmers remain hopeful that something can be done on IHT.

“This isn’t over – not by a long shot,” he insisted. “Farming is a long-term game.”

He pointed to growing divisions inside the government, after the farming minister admitted on BBC Radio 4’s Farming Today programme that she had tried to amend the policy – but was overruled by the Treasury.

“Dame Angela’s comments clearly signal a divide between Defra and the Treasury – something we haven’t heard publicly until now,” said Mr Williams.

“It raises the question: were her remarks made to reassure her own farming crowd, or to shift pressure onto the Treasury ahead of possible amendments? Politics is a fickle game, and what’s policy today may be gone tomorrow.”

Labour MP speaks out

Labour is also facing rebellion from within.

Henry Tufnell, Labour MP for Mid and South Pembrokeshire, said the Treasury had underestimated the impact on farming businesses in his constituency.

“I don’t agree with the assessment that the Treasury have made about that impact,” he told GB News.

“I’ve gone and spoken to Pembrokeshire farmers locally.

“I’ve collected a lot of data from them, seen their accounts – they’ve been very, very open about that – and I think the impact on them will be greater than what the Treasury are saying it will be.

“That gives me great concern because agriculture is a huge part of our rural identity and it’s hugely important to Pembrokeshire as a county.

“So, me as their representative in Parliament, I think it’s right that I make that case – even if it makes people in my party feel uncomfortable in terms of thinking, loyalty or trust.”

Tim Farron, Lib Dem agriculture spokesman, called the refusal to amend the policy “hugely disappointing” and warned it would cause “immense damage to environmental stewardship and food production”.

Scottish Conservative Tim Eagle went further, describing the policy as a “cruel family farm tax” and a “devastating blow to the sector”.

‘Still time to change course’

However, Mr Williams said Labour still had time to change course before April 2026.

“Does Labour want to see IHT as their defining moment for the rural economy?” he asked. “The morality of placing people in an impossible position using this policy has to come into question.”

He said farmers were now looking to an upcoming profitability report from Baroness Minette Batters, due by 31 October, to reinforce their case:

“Unfortunately with this IHT cloud over many it’s difficult to see a way forward – when it could so easily be lifted with the stroke of a pen.”

The Labour government insists its farm IHT policy will impact only about 500 farms a year – a claim strongly disputed by the NFU, CLA, TFA, CAAV, Countryside Alliance, and other rural organisations.

A spokesman for the Treasury said: “The chancellor makes tax decisions at fiscal events. We do not comment on speculation ahead of them.”