London: Thousands of British farmers are gathering in Parliament Square to protest the planned removal of an inheritance tax exemption, a move they claim endangers family-run farms and the nation’s food supply.
Finance Minister Rachel Reeves announced in October that from 2026, farmers owning land valued at over £1 million ($1.26 million) will no longer be able to transfer their farms tax-free to their heirs.
The policy, part of a broader strategy to fund public services, has drawn sharp criticism from the farming community, who argue it undermines the viability of agricultural businesses.
Critics of the so-called “tractor tax” argue that it will force heirs to sell farmland to cover tax bills, jeopardizing food production. Many family farms, operating on tight profit margins, say the tax change could make their businesses unsustainable.
Protest organisers expect around 20,000 farmers to join the demonstration, which will feature symbolic actions such as children driving toy tractors.
Reeves defended the policy, emphasising that it targets only the wealthiest estates, with just 500 farms affected annually. The proposed tax rate for affected farms will be 20 percent, compared to the usual 40 percent, and can be paid over ten years.
“I understand the concerns, but this reform will help fund schools and healthcare services that rural communities rely on,” stated Reeves.
Prime Minister Keir Starmer echoed these sentiments, stating during the G20 summit in Brazil that the vast majority of farms would remain unaffected. He also highlighted the government’s £5 billion in support for the agricultural sector over the next two years.
The protest underscores the growing divide between the government and the farming community, as farmers face increasing economic and environmental pressures.
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