Elon Musk has hit out at the Labour government over its plans to hit some farmers with inheritance tax as those from the agriculture industry plan huge protests.
Chancellor Rachel Reeves unveiled the new policy in the Budget, meaning that from 2026, inheritance tax relief for business and for agricultural assets will be capped at £1million.
Many farmers are furious as this could see them hit with a huge tax bill when their farms are passed down to family members, even risking putting them out of business.
But Prime Minister Sir Keir Starmer has defended the policy, saying he is “absolutely confident” that most farmers will be exempt.
Amid growing controversy surrounding the policy, X and Tesla boss Elon Musk has waded into the debate.
He posted on X: “Britan is going full Stalin.”
He wrote this in response to an op-ed written in the Guardian by Will Hutton, which stated: “Farmers have hoarded land for too long. Inheritance tax will bring new life to rural Britain.”
Between 10,000 and 40,000 farmers are expected to attend a protest in London.
Meanwhile, the National Farmers’ Union (NFU) is lobbying MPs to try to force a U-turn from the Labour government.
Jeremy Clarkson, who runs his own farm in Oxfordshire, has also been a vocal critic of the inheritance tax changes.
Following the Budget, he said: “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.”
In 2021, he told The Times newspaper that avoiding inheritance tax was “critical” in his decision to buy the farm.
Tom Bradshaw, of the National Farmers’ Union, said: “This Budget not only threatens family farms but also makes producing food more expensive, which means more cost for farmers who simply cannot absorb it and it will have to be passed up the supply chain or risk the resilience of our food production.”
Sean McCann, of the insurer NFU Mutual, added: “Agricultural property relief is in place to protect British agriculture and ensure family farms are not broken up when they’re passed on to the next generation.
“These changes mean in many cases we could see land and buildings being sold on the farmer’s death to pay the tax bill, with the next generation of farmers inheriting smaller, less efficient farms as a result.”
