A Lincolnshire farmer has hit out at Labour’s inheritance tax changes that were announced in the recent Budget, claiming the policy will “cripple” family farms and make it nearly impossible to pass them down to the next generation.
Andrew Ward, 63, who runs a farm in Leadenham, said the new rules would leave him with a massive tax bill and questioned the future viability of family-owned agricultural businesses.
In the Budget, Rachel Reeves introduced a cap of £1 million on inheritance tax relief for farms, meaning that any assets over this threshold will be subject to tax.
Ward said this change places a burden on farmers who are already facing rising costs.
He told LincolnshireLive: “Farmers are feeling extremely let down.
“Labour clearly doesn’t understand agriculture or how family farms have survived for so long.”
He also explained that while £1 million might seem like a significant amount, it falls far short of covering the value of even a small farm.
“That would barely get you 30 acres,” he said, adding that he farms around 1,000 acres, which is typical for many farmers.
Ward added: “It would cost us thousands of pounds per acre to hand down. I’m going to have to find £1 million to pay the taxman if I want to pass my farm on – and farmers don’t have that sort of cash.”
Ward also voiced frustration over the increase in National Insurance contributions for employers, calling it “crippling” at a time when many farms are struggling financially.
He warned that more family farms could go out of business, adding: “The government should be going after the really big landowners, not family farms.”
What’s more, the Lincolnshire farmer claimed that costs on his farm have surged by 44 percent since 2019, yet food prices remain stagnant.
“It makes me wonder why I’m carrying on,” he said. Ward added that he would consider selling land to solar companies if the opportunity arose, even though it would reduce food-producing land in the area.
Local officials and industry representatives also criticised the Budget’s impact on agriculture.
Councillor Colin Davie, who oversees economic development and environment at Lincolnshire County Council, called the Budget “an attack on rural England and the farming community.”
Jane Bassett, the chair of the Midlands regional board for the National Farmers Union (NFU), echoed these concerns, saying: “All sectors of farmers and growers will be impacted by the Budget with rising costs and a tough winter ahead.”
She added that while farmers welcomed flood support funds from the previous government, “many farms will be unable to have any chance of handing over to their families to continue to produce food in the region”.
In defence of the Budget, Reeves said the government was making “very difficult choices” to “fix Britain’s foundations” and close a £22 billion deficit.
She insisted that the changes would primarily impact the wealthiest and claimed the reforms to inheritance tax and Agricultural Business Relief were designed to protect working people.