The environment secretary, Steve Reed, faced a tumultuous reception at the National Farmers’ Union (NFU) conference, as his speech was interrupted by angry protesters voicing their opposition to the government’s decision to impose inheritance tax on farms. The controversial policy, set to take effect in April 2026, will require farmers to pay a 20% inheritance tax on farms worth more than £1 million, reversing a previous exemption. Reed acknowledged the strong emotions in the room but made it clear that the government could not reverse the decision, stating, “I’m sorry, it’s a decision that we have had to take.” The announcement was met with muted applause and a hostile audience, as many farmers feel betrayed by the move.
Despite the tension, Reed unveiled several policy measures aimed at easing relations with the farming community. These included the long-awaited extension of the seasonal worker visa program by five years, which is expected to boost farm profitability by addressing labor shortages. Additionally, he announced £30 million to increase payment rates in higher-level stewardship schemes, new requirements for government catering contracts to prioritize British produce, and a significant investment in technology to enhance controls on animal disease and protect farmers in trade deals. While these announcements were welcomed by some, they were overshadowed by the widespread anger over the inheritance tax policy, which has become a flashpoint for farmers across the country.
The inheritance tax policy has been branded “cruel” and “morally wrong” by NFU President Tom Bradshaw, who argued that it places an unfair burden on older farmers and their families. Bradshaw emphasized that many farmers are now forced to confront the dire possibility that unless they pass away before April 2026, their families will be unable to afford the tax, threatening the survival of small farms. “What a cruel position to put elderly people in by no way of warning, by way of a broken promise,” Bradshaw said, urging the government to reverse the decision urgently. Farmers have staged protests in Westminster, reflecting the depth of their frustration and sense of betrayal.
Proponents of the tax change argue that it will help prevent the use of agricultural property for large-scale tax avoidance and ensure that land values align more closely with market values, potentially promoting greater diversity in land ownership. However, these arguments have done little to mollify farmers, who fear the policy will push small farms out of business. During a heated question-and-answer session following his speech, Reed faced repeated challenges from farmers, some of whom suggested that the best tax planning strategy might be for older farmers to die before the changes take effect. Reed expressed sympathy for individual circumstances but stated that it was difficult for him to comment on specific cases.
Reed also highlighted the financial challenges inherited from the previous Conservative government and emphasized the need to stabilize the economy. He acknowledged the “black hole” in public finances and defended the decision to impose the inheritance tax as a necessary measure. “I’ve explained to you why we had to take a decision that I know has been very, very difficult, but we will focus on making farms more profitable, because that seems to me the problem at the heart of the crisis in the sector,” he said. Reed’s remarks were an attempt to shift the focus away from the contentious tax policy and toward the government’s broader efforts to support agriculture, but the anger in the room remained palpable.
The environment secretary also outlined plans for a 25-year farming roadmap and food strategy, which will prioritize food production and enhance the resilience of farm businesses against shocks such as severe weather and animal disease. He stressed his commitment to improving farm profitability, stating, “I will consider my time as the secretary of state a failure if I do not improve profitability for farmers up and down this country.” Reed also reassured the audience that the UK would not compromise its food standards in trade agreements, a statement that resonated with farmers who have long advocated for maintaining high standards in the face of global competition.
In conclusion, the NFU conference highlighted the deepening rift between the government and the farming community over the inheritance tax policy. While Reed’s announcements on seasonal worker visas, stewardship payments, and investments in technology were well-received, they failed to offset the outrage over the tax changes. The government’s decision has sparked widespread protests and accusations of breaking promises, with farmers warning that the policy could decimate small farms and force families to abandon their livelihoods. As the deadline for the tax change approaches, the pressure on the government to revisit the policy is likely to intensify, with farmers demanding urgent action to address their concerns and ensure the future of UK agriculture.
