The Chancellor has been accused of “thievery” after removing the inheritance tax exemption from farmers which could cost them their livelihoods.
Farmers have warned the government this could now lead to “catastrophic” food prices putting food security at risk with shortages.
The IHT change applies to family owned and run farms and from April 2026, £1 million of agricultural and business assets will not be taxed.
However, most farms are worth a fair few million, therefore the IHT will then apply for farmers of a 50% relief, that will be an effective rate of 20%.
More than a third of the UK’s 209,000 farms could end up going bust by being forced to pay extortionate tax bills.
Shadow Farming Minister Robbie Moore who has a farming background warned Labour’s move will be “catastrophic for family farms.”
He told Sky News, “This is effectively thievery, putting two fingers up to the farming industry. They’ve completely underestimated the effect this will have, it creates a lot of uncertainty in terms of how that land will be managed.
“If you want to invest in that holding to produce food, you need certainty, and what the announcement creates is uncertainty. It will have a direct impact on the food security agenda and food prices further down the line.
The Amazon Prime Clarkson Farm owner, Jeremy Clackson wrote on X, “Farmers. I know that you have been shafted today. But please don’t despair.
“Just look after yourselves for five short years and this shower will be gone,” meaning he is hoping Labour will be voted out.
Kirstie Allsopp who is the Location, Location, Location presenter blasted the Chancellor accusing her of having “f****d” farmers.
