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Fury as Reed says IHT revenue will fund mental health

Philip Case 20 May 2025
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Steve Reed at the Efra committee meeting watched by farmers Martin Williams and Olly Harrison © Parliament TVSteve Reed at the Efra committee meeting watched by farmers Martin Williams and Olly Harrison © Parliament TV

Frustrated farmers have been told the inheritance tax (IHT) hike threatening to bankrupt their businesses will help pay for mental health services across the countryside – even as the policy fuels a rise in rural despair and increased fears of tarmer suicides.

In a tense exchange at an Environment, Food and Rural Affairs (Efra) committee hearing, Defra secretary Steve Reed revealed that the £500m a year raised from farm IHT would be used to fund NHS improvements and mental health services, including hubs in every community.

See also: Labour’s farm inheritance tax ‘secrecy’ sparks fury

“There are particularly high levels of mental ill health in rural communities,” Mr Reed told the cross-party committee of MPs. “Those who say they don’t want to raise revenue to fund these benefits need to tell us which benefits they would cut instead.”

Efra chairman Alistair Carmichael responded, saying farmers watching the session would be “shouting at their TV screens” because they already pay taxes.

Mr Reed’s comments sparked fury from Conservative MPs on the committee, who warned that the policy itself is exacerbating the mental health crisis in farming communities.

Conservative MP Sarah Bool

Sarah Bool at the Efra committee hearing © Parliament TV

‘Unbearable’ mental health strain

“I’m staggered,” said Sarah Bool, Conservative MP for South Northamptonshire. “The mental health strain is unbearable. I’ve heard farmers telling me about family members planning things they shouldn’t be doing to escape this.”

Ms Bool urged the Labour government to follow the Efra committee’s recent call to delay the farm tax until 2027 to allow for a full review of its impact on farmers. “Please consider doing this postponement, which will secure better mental health services for our farmers,” she told Mr Reed.

Committee members also warned that many farms would face unmanageable tax bills, wiping out profits for years and forcing families to sell or stop investing.

“You’re not going to make them profitable by whacking them with a great inheritance tax bill,” said Charlie Dewhirst, Conservative MP for Bridlington and the Wolds.

Mr Reed defended the reforms as necessary to correct “years of neglect” under the previous Conservative government, claiming the creation of a Farming Profitability Unit, led by former NFU president Minette Batters, would help the sector grow.

However, without an impact assessment or economic modelling from the Treasury, farmers and opposition MPs argue the policy is being rushed through without fully understanding its consequences.

Farmer reaction

Farmers Olly Harrison and Martin Williams, who helped organise major protests against the tax, were in parliament watching Mr Reed face the Efra committee on Tuesday (20 May).

They told Farmers Weekly the government must urgently rethink the policy.

“We don’t need to have this friction between farmers and the government. We need to work together,” Mr Harrison said.

“Before there is anyone’s blood on their hands, let’s get our heads together and talk about some solutions.”

James Wright, a beef and sheep farmer based on Exmoor and policy director of the Conservative Rural Forum, said: “Labour thinks it can raid and plunder the countryside to pay for promises it made to win the election.

“Instead of playing games and taxing grieving families, Steve Reed should try listening to farmers he’d destroying.”

  • Following the session, the Efra committee shared support resources on X, directing farmers distressed by the hearing to two key charities offering help: the Farming Community Network and Rabi.

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