Inheritance tax won’t achieve government’s goal – NFU

• Tax ‘betrayal’ of farming families

• Government unveils finance bill

• Ministers refuse to discuss plan

Industry leaders have again warned that imposing inheritance tax on farming families will fail to achieve the government’s aims.

The NFU issued the warning as the government laid out draft legislation for its finance bill – including plans to levy 20% inheritance tax on farming assets worth more than £1 million from April 2026.

NFU president Tom Bradshaw urged the government to look again at the union’s alternative solution he says would prevent farmers from becoming “collateral damage” from the planned reforms.

‘Clawback solution’

The current policy would fail to achieve the government’s intention to stop wealthy people from buying farmland to avoid inheritance tax. Neither would it generate as much revenue as it should, he said.

On the other hand, the NFU’s clawback solution would allow the Treasury to raise the revenue it seeks without tearing apart farming families or jeopardising domestic food production, said Mr Bradshaw.

“At the heart of this battle are the elderly farmers who have devoted their entire lives to growing food for the country and supporting their rural communities. They should not become collateral damage.

“To see them face such uncertainty, knowing the legacy they and their families have worked hard for and grown could be ripped away by this tax, is heartbreaking.

“I cannot begin to imagine the fear many must be feeling right now – their homes, their livelihoods and everything they’ve worked for is under threat.”

Persistent efforts

Mr Bradshaw said MPs from all parties – including the government’s own – had called on Chancellor Rachel Reeves to reverse her plan. So too had county councils, businesses and more than 250,000 members of the public.

“Despite our persistent efforts, Chancellor Rachel Reeves still refuses to meet us,” said Mr Bradshaw. “When you undermine farm businesses, you undermine a vital part of our national infrastructure.”

“To ignore the consequences this tax will bring would be a betrayal of the very people who feed our nation. We cannot stand by and watch the backbone of the countryside be broken when there is a credible alternative being offered.

“This is a moment that demands listening, compassion and action. The government needs to sit down with farming representatives to find a solution that protects the future of our domestic food production – before it is too late.”

Strategy focuses on Good Food Cycle

Farm minister Daniel Zeichner has unveiled the next stage of the government’s food strategy – including plans for a sustainable supply chain.

The Good Food Cycle aims to encourage healthier diets in a way which works for consumers as well as producers. It includes a 10-point plan drawn up with industry representatives and consumer groups.

Mr Zeichner said: “Food security is national security – we need a resilient food system that can weather any storm while ensuring families across the country can access affordable, healthy food.”

The government’s goal was a food system which would help the businesses that feed our nation to grow and thrive, said Mr Zeichner. This would mean more jobs and stronger local economies, while making it easier for families to eat and feel better.

“This isn’t just about what’s on our plates today, it’s about building a stronger food system for generations to come, supporting economic growth, health and opportunity as part of our Plan for Change.”

The government says fresh partnerships with big food companies will see them share data on healthy food sales, creating more transparency and a level playing field across the industry.

NFU president Tom Bradshaw said a long-term strategy was important, but the policy behind it had to move at pace to provide much-needed certainty in the short-term and restore farmer confidence.

Mr Bradshaw said: “We need everyone in government to recognise that a resilient food system is not just an ambition but a necessity, and that a thriving, profitable farming industry is critical to delivering this.”