A furious Lee Anderson has vowed to “stand up” for farmers and written to Chancellor Rachel Reeves demanding she “reverse” a decision to bring in inheritance tax on agricultural property.
At present farms can be passed on in families 100% free from Inheritance Tax, but from April 2026 only properties valued up to £1million will receive full relief, with those above that value attracting only 50%.
Campaigners argue that the sweeping changes to the sector will mean around 30% of the 209,000 farms in Britain will be affected by the new tax changes, meaning farmers who have cared for the land for generations may not be able to pass on their farms to their families.
Taking to X, Mr Anderson, Reform UK MP for Ashfield, shared a letter written by his party to the Chancellor alongside the caption: “Reform MPs have written Rachel Reeves about her decision to hammer farmers in the budget.
“This decision needs to be reversed and quick. Only Reform will stand up for our farmers.”
Ms Reeves has tried to defend her decision which appeared to go against promises made by Labour before the General Election.
She claimed the new Budget measures would close a loophole for the “wealthiest landowners” making them on a par with “middle-class families”.
But in a blistering attack, the letter from the Reform UK party says: “This raid on farmers will decimate rural communities up and down the country. Farming communities are the bedrock of rural areas in the UK, many farmers barely scrape a living farming land, which they often don’t consider an asset which can be sold and hope to pass on to the next generation.
“We urge you to reverse your policy and do the right thing for the foundation of our country. Let’s not bite the hand that feeds us.”
In December the National Farmers Union (NFU) reported that then Shadow Department for Environment Food and Rural Affairs Steve Reed confirmed the Labour Party had no plans to change inheritance tax including APR (Agricultural Property Relief), if it wins the next election.
Speaking at the time NFU President Minette Batters said it was “good to see Labour has listened to our concerns and recognised the importance of keeping this policy”.
But speaking to LBC Radio, The Chancellor said: “If you are a couple with a home, you can pass a million pounds on tax-free to your children.
“If you have farmland or any land, you, under our plans now, can pass on another million pounds above that first a million pounds allowance tax-free. And then beyond that, there will be inheritance tax.
“At the moment, Nick, you can have some of the wealthiest landowners, not farmers, but wealthy landowners in this country who pay no inheritance tax whatsoever, while middle-class families do. That is not right, and that’s why we’ve closed that loophole.”
Current NFU president Tom Bradshaw said farmers had been left “reeling” by Ms Reeves decision.
Mr Bradshaw, who is meeting Environment Secretary Steve Reed on Monday, said the current plans to change Agricultural Property Relief (APR) and Business Property Relief (BPR) “need to be overturned and fast”.
Mr Bradshaw added: “Farmers are rightly angry and concerned about their future and for the future of their family farms, having been reassured by minsters in the lead up to the budget that APR and BPR changes were not on the table.
“The Treasury’s figures which claim this will only affect one in four British farms are misleading.
“It’s clear the Government does not understand that family farms are not only small farms, and that just because a farm is an asset it doesn’t mean those who work it are wealthy.
“I have said, every penny the Chancellor saves from this will come directly from the next generation having to break up their family farm. It simply mustn’t happen.”
