The Labour government is facing mounting criticism after it emerged that the Department for Environment, Food & Rural Affairs (Defra) has conducted no impact assessment on the controversial inheritance tax (IHT) reforms, branded the “family farm tax” by the National Farmers’ Union (NFU).
A Freedom of Information (FOI) request submitted by the Conservative Rural Forum (CRF) has revealed that Defra has not analysed the effect of these sweeping changes on British farmers, their businesses, or their mental health.
The revelation comes as anger grows across the agricultural community, with thousands of farmers descending on London earlier this week to protest the policy.
No Impact Assessment Conducted
The FOI request, submitted on 1 November, sought information on the projected number of UK farms affected by the changes, the financial cost to farmers, and any evaluations of the policy’s impact on food security, business reinvestment, or farmer wellbeing.
In a written response on 19 November, Defra admitted:
“The information that is requested is not held by Defra.”
This means that no analysis, draft documents, or meeting notes regarding the policy’s potential effects exist within the department.
Farmers Left in the Dark
The policy will see previously exempt farms valued at over £1m paying a 20% IHT rate from April 2026. Farmers and rural organisations argue that the changes could devastate family farms and disrupt UK food production.
James Wright, CRF policy director and a farmer from Exmoor, condemned the lack of preparation, saying:
“Without any data to back up their claims, the Labour government is gambling with the livelihoods of farming families and the future of the countryside.
The fact that no research on farm inheritance tax has been done before implementing these reforms just shows that Labour is completely out of touch with farmers.”
Labour Defends the Policy
In response to criticism, Defra Secretary Steve Reed defended the government’s stance at the Country Land and Business Association (CLA) conference in London, insisting that the Treasury’s figures are based on “hard data.”
“The Treasury’s figures are based on hard data from actual claims from the relief. This includes the impact not only of agricultural property relief but also of business property relief,” he said.
He added that only 500 estates would be affected annually, a figure highly contested by leading economists and experts in the field.
Treasury’s Position
A Treasury spokesperson stated:
“We have set out our modelling on the impacts of the changes to agricultural property relief at the Budget, and more recently the chancellor set out further details to the Treasury Select Committee.
As is standard practice, we will publish further analysis of the impacts alongside the draft legislation expected in 2025.”
Despite media speculation that farmers aged over 80 might be exempted from the tax, the Treasury has firmly denied plans for any mitigations or policy adjustments.
Rural Communities Feel Betrayed
The NFU and the Country Land and Business Association have expressed outrage at the lack of consultation with the farming industry. Both organisations are calling for a full impact assessment to understand the consequences of the proposed changes.
Conservative MP Alicia Kearns criticised the government’s handling of the policy, stating:
“Every statement the Government makes on their attack on family farming is therefore based off their ideological views and contempt for our rural way of life.”
A Community Under Threat
With no data to support its claims, Labour’s handling of the IHT reforms has deepened mistrust within rural communities. Farmers argue that the government’s failure to assess the potential fallout risks not only individual livelihoods but also the future of British agriculture.
The NFU has warned that the reforms could devastate farming families who have worked their land for generations, urging the government to reconsider before irreparable damage is done.
For more information go to Farmers Weekly.
