Farmers face a brutal blow as the Labour Government pushes through plans that could see them forced to sell fields for a fraction of their true worth to make way for new homes and hospitals.
Under Labour’s new Planning and Infrastructure Bill, councils will get sweeping powers to seize land via compulsory purchase orders – but here’s the kicker: they’ll only have to pay its current value, not the higher price it could fetch with planning permission.
It’s a devastating hit for landowners, who could be robbed of massive payouts if officials decide their land is ripe for housing, hospitals, or schools. The move is already being slammed as another attack on the countryside by the Labour Government, coming hot on the heels of last year’s inheritance tax hike – dubbed the ‘tractor tax’ – that walloped farmers with a 20% bill.
‘We’re getting Britain building’ – Rayner
Housing Secretary and Deputy PM Angela Rayner insists the plans are about “getting Britain building again” and boosting growth by slashing red tape.
She said: “We’re creating the biggest building boom in a generation – as a major step forward in getting Britain building again and unleashing economic growth in every corner of the country.”
But furious farmers and rural groups say they’re being punished, as they’ll also have to flog land to cover rising inheritance tax bills from April 2026.
Gavin Lane, deputy vice-president of the Country Land and Business Association, warned: “We urgently need more affordable housing, but pushing landowners into selling land isn’t the answer.”
‘Hope’ slashed from landowners’ wallets
At the moment, land seized under compulsory purchase is paid at ‘hope value’ – the price it could reach if planning permission was granted. But under Labour’s plan, that’s scrapped.
Previously, public authorities needed a Government minister’s sign-off to ignore hope value. Not anymore – this Bill lets councils, mayors, and inspectors brush it aside without permission.
The Bill also makes it easier for local authorities to cut hope value for land bought for parish, town, or community councils. However, if land already has planning permission, owners will still get the higher price.
A Government consultation last year said too much land “suitable for housing” was lying empty instead of being developed. Ministers insist there are safeguards to stop abuses of the new powers.
But landowners face an uphill legal battle if they want to fight back. They can object to a compulsory purchase order, but only on technical grounds, which could leave them tangled in expensive court fights.
‘Step too far’
The backlash is growing. The Countryside Alliance slammed the move, warning Labour was hammering farmers at a time when they’re already under pressure.
Tim Bonner, chief exec of the Countryside Alliance told the Telegraph: “We have been supportive of many of the Government’s changes to planning policy, but giving councils more power to reduce the value of land is a step too far, especially in the context of such a challenging outlook for farmers and the inheritance tax fiasco.”
“This isn’t about blocking development – it’s about paying a fair market price for land. We need more houses, but not at the cost of basic principles.”
Labour under fire on the countryside
It’s not the first time Labour has been accused of declaring war on rural Britain. From the ‘tractor tax’, to plans for banning trail hunting, and tightening gun laws, critics say this latest move is just another nail in the coffin for countryside communities.
Rayner remains defiant, insisting: “The Planning and Infrastructure Bill will unleash seismic reforms to help builders get shovels in the ground quicker.”
She promised the reforms would deliver Labour’s “ambitious” target of 1.5 million new homes by 2030, tackling the housing crisis head-on.
But Labour’s housebuilding goals are already under scrutiny. Housing Minister Alex Norris dodged questions on Monday when asked if the target of 370,000 homes a year would be hit by 2025. Even Labour’s own Matthew Pennycook, the minister of state for housing, admitted the target was “incredibly stretching”.
For farmers and landowners, it looks like Labour’s big building push comes with a heavy price – and they’re the ones footing the bill.
Read more here: https://www.telegraph.co.uk/news/2025/03/10/farmers-sell-fields-to-councils-lower-value/
