The UK government is set to unveil a series of policy measures aimed at addressing the growing anger among farmers over the decision to impose inheritance tax on farms. Environment Secretary Steve Reed is scheduled to announce these measures at the National Farmers’ Union (NFU) conference on Tuesday. The policies include the long-awaited extension of the seasonal worker visa programme, which is expected to bolster farmers’ profits. This move comes amid widespread dissatisfaction from farmers, who have been vocal in their opposition to the inheritance tax policy. The government hopes these new measures will alleviate some of the concerns and demonstrate its commitment to supporting the agricultural sector.
At the heart of the controversy is the inheritance tax policy, which will require farmers to pay a 20% tax on farms valued over £1 million starting in April 2026. Previously, agricultural properties were exempt from this tax. Proponents of the change argue that it will help reduce tax avoidance, align agricultural land values more closely with market values, and promote a more diverse ownership of land. However, farmers have been staunchly opposed to the policy, with many expressing fears that it could force small farms out of business. The NFU has organized protests in Westminster, and tensions remain high as the farming community feels betrayed by the government’s decision.
One of the key measures announced by Environment Secretary Steve Reed is the extension of the seasonal worker visa programme, a policy change that has been a top priority for the NFU. The programme, which will be extended for five years with annual reviews to ensure it meets the needs of the industry, is expected to provide much-needed stability for farmers who rely on seasonal workers to manage their operations. The NFU has welcomed this move, stating that it will help safeguard the future of UK food production. Additionally, Reed is expected to announce new requirements for government catering contracts, which will prioritize high-quality, locally sourced produce. This shift aims to ensure that at least 50% of the food supplied to the £5 billion public sector catering industry comes from British producers or those adhering to higher environmental standards.
The government is also investing £110 million in new technologies designed to support farmers. This includes funding for electric weeders that reduce chemical use, as well as measures to strengthen controls on animal disease and protect farmers in trade deals. These initiatives reflect a broader effort to modernize the agricultural sector and make farming more sustainable and profitable. Environment Secretary Reed has emphasized his commitment to improving the financial viability of farming businesses, stating that he views his tenure as a failure if he does not succeed in making farming more profitable. He has also highlighted the importance of ensuring long-term food security for the UK, which he believes is closely tied to the success of its agricultural industry.
Despite these positive measures, the NFU has called for a “reset” in the government’s relationship with farmers. NFU President Tom Bradshaw has criticized the government for breaking its promises, particularly with regard to the inheritance tax policy. Bradshaw has described the policy as “morally wrong” and accused the government of driving through measures that undermine the viability of family farms. He has urged Environment Secretary Reed to reverse the tax policy, arguing that it undermines farmers’ ability to plan and invest in their businesses. Bradshaw has also expressed disappointment that the government, despite its early promises, has failed to deliver on key commitments, leaving the farming community feeling disillusioned and uncertain about the future.
In summary, the UK government is attempting to address the concerns of farmers through a mix of policy measures, including the extension of the seasonal worker visa programme, investments in technology, and reforms to government catering contracts. However, the inheritance tax policy remains a major point of contention, with farmers and the NFU calling for its reversal. The situation highlights the delicate balance the government must strike between addressing tax avoidance and supporting the agricultural sector, which is not only economically important but also deeply tied to the nation’s food security and rural heritage. As the NFU conference approaches, all eyes will be on Environment Secretary Steve Reed and his ability to restore trust and confidence among farmers.
