Shropshire farmers prepare to head to Westminster as anger over Labour's Inheritance Tax reforms grows

Kier Starmer's government has faced a storm of criticism since the announcement that from April 2026 agricultural assets exceeding £1 million in value will no longer be exempt from Inheritance Tax.

Under plans unveiled in the autumn Budget on October 30, Inheritance Tax would be levied at 20 per cent on agricultural assets above £1 million, which includes livestock, farmhouses, sheds, and machinery - although Chancellor Rachel Reeves has said that in some cases the threshold could in practice be about £3 million.

This decision, labelled by some as 'disastrous' and a 'death knell,' has already ignited outrage and warnings that it could lead to the demise of farms that have been in families for generations, as well as jeopardising national food security.

Over the weekend, Welsh farmers descended on the coastal town of Llandudno in their tractors to express their anger, with chants of "enough is enough" emanating from the convoy. 

Despite the backlash, the Prime Minister has defended the policy, stating that he was “absolutely confident” that the overwhelming majority of farmers would be exempt.

Ministers contend that the change will deter investors from sidestepping Inheritance Tax by purchasing farmland - much of which remains underutilised for production.

Labour's analysis reveals a decline in the amount of agricultural land actively used for farming and a significant recent increase in wealthy individuals and institutions acquiring farmland across England.

But that comes as little reassurance to Shropshire's farmers, who have this year reportedly faced the 'worst harvest in living memory' which followed years of disruption, thanks to Covid, Brexit, and the cost of living crisis.

Dozens of the county's farmers are heading to the capital tomorrow (Tuesday) to join a protest that has been organised to coincide with a mass lobby being held by the National Farmers' Union (NFU), who will meet MPs to make the case for reversing the tax decisions.

The NFU has planned for 1,800 registered members to attend Church House, Westminster, where they will meet with their MPs, as well as across in Parliament, to explain the real-life impact changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) will have.

One of those who will be boarding the early coach to London is dairy farmer and Wem NFU branch chairman, Neale Sadler. Neale's family's farm has been in the family since his grandfather took it over in 1950.

He said: "It's very concerning, I'll be 55 in a couple of weeks and both my parents are in their 80s - this is something that's potentially going to affect me in the very near future. 

"All sectors of farming have been at rock bottom in recent years, there's not one element of farming that you could utilise to pay Inheritance Tax. Shrewsbury MP Julia Buckley stressed to us that they didn't want to tax our profits - but the reality is there are no profits. 

"The only option would be for farmers to sell land to pay an extra tax - which means potentially losing 15 or 20 per cent of your farm, making it even less profitable than it is now.

"My grandfather bought our farm in 1950, worked very hard all of his working career and my father took over in the 1980s, he will then pass that farm over to me. 

"I'm pretty certain I will be the last farmer in our family, I have two children and all they've seen in their lifetime is a lot of hard work and very little money - why would they want to take that on?" 

Ludlow farmer Graham Price, NFU chairman for Shropshire, is among those travelling to London.

He said: "The vast majority of family farms will be affected by this. It is going to cause a lot of mental stress and worry.

"People thought everything would be okay and they would be able to hand their farms on to the next generation and all of a sudden they are discovering that is not the case. The next generation will have to review their position and whether there's a future for them or whether they should look to other jobs.

"What I want to do is sit at the table and explain my situation and how it affects me. Hopefully that will strike home more and be more meaningful than leaders speaking on behalf of the farmers - eyeball MPs across a table and hopefully individual, personal stories will then get fed back to the Treasury.

"From my point of view, it will make it difficult, perhaps even impossible to hand it on to my next generation. I have two younger members of my family who have been away to agricultural college to learn the trade and they have returned back to be partners in the business. They are enthusiastic but we always felt there wouldn't be an issue handing the business over to them.

"Hopefully we can share our stories and strike a chord with MPs."

Arable farmer Andrew Williamson, from near Bridgnorth, said the "shock" Budget felt "like an attack on farmers".

He said: "The Budget was a shock, even more so because the government said they wouldn't touch APR. That's a concern, with them saying one thing and then turning around and doing it. 

"It feels like an attack on farmers and they are reducing BPS [Basic Payment Scheme] payments quicker than they said they were going to as well so it feels like one thing after another. 

"As a farmer, you want to feel valued but we don't feel we are at all. The farming industry was at a low ebb before the Budget with regards to the weather, with an unfavourable autumn, and other challenges.

"This is another pressure and people will have to reappraise their futures in the industry. The government say they will use money to put into public services, NHS, transport, etc."

Alex Phillips, partner and head of the Agriculture and Rural Affairs Division at MFG Solicitors, said: “Farming families are feeling particularly let down following the Chancellor’s Budget.

“You can feel the mood and despair just by looking at social media, with one farmer claiming that he can no longer afford to die, and the National Farms Union president, Tom Bradshaw, scathingly referring to the Budget as disastrous for the future of family farms and a threat to the resilience of our food production. 

“Many have said that these changes could severely hamper a farmer’s ability to pass the family farm onto their children and grandchildren without having to sell a significant part of the land to pay tax, which for many may not even be possible without risking the viability of the entire farm.

“The Chancellor claims that only six per cent of estates will pay Inheritance Tax this year, but the general consensus amongst agricultural professionals is that in reality all but the smallest of farms will be affected at a time when the industry is looking to the Government for support.

“Farming families will now need to seriously consider their futures to ensure the preservation of their farms, many of which have been in their families for several generations, as well as the general future sustainability of their businesses and the country’s food production.”