Rachel Reeves is under fire yet again as the Tenant Farmers Association (TFA) warns her budget tax changes could spell disaster for Britain’s agricultural sector.
Chancellor Reeves’ new inheritance tax policies, which significantly raise taxes on agricultural land, have sparked fury among tenant farmers, who say the changes could jeopardise their futures.
Despite urgent pleas from industry experts, Reeves pushed forward with a plan that slashes the inheritance tax relief limit to £1 million, applying equally to both agricultural property relief (APR) and business property relief (BPR). Many say it’s a move that places tenant farmers, particularly those on large estates, in an impossible position.
TFA Chief Executive George Dunn didn’t hold back, calling the changes “immensely damaging” and pointing out that the £1 million exemption barely makes a dent for small tenant farmers, especially those on large, privately-owned estates.
“By reducing the tax-free threshold to £1 million, Reeves is hitting Britain’s tenant farmers hard,” Mr Dunn said. “For estates worth over £1 million, facing a 20% tax on half their value after every death is a major blow to the let sector.”
From April 2026, these changes will come into effect, potentially sparking a wave of land disposals from private estates, a scenario that hasn’t been seen since the mid-20th century when Labour’s high death duties broke up countless rural estates.
Adding to the frustration, Dunn highlighted that the Chancellor ignored TFA’s proposal for 100% inheritance tax relief on land let for 10 years or more – a policy that would encourage sustainable tenancies, provide economic stability, and protect traditional estates. “Instead, the Chancellor has favoured a blanket approach, penalising estates that work to support long-term farming tenancies,” Dunn added.
With concerns mounting that these changes could decimate family-run farms, Dunn made a direct plea to the Chancellor to “think again” and introduce a provision to exempt land with long-term leases.
