Record 6,365 UK Farms Close Amid Inheritance Tax Hike

A record 6,365 agriculture, forestry, and fishing businesses in the UK have closed over the past year, the highest since records began, primarily due to increased financial pressures including a new inheritance tax on family farms. The tax, introduced by Chancellor Rachel Reeves, imposes a 20% rate on agricultural assets above £1 million starting in April 2026, ending previous full relief and forcing some farmers to sell land to cover tax bills. Industry leaders, including the National Farmers' Union and the Country Land and Business Association, warn that rising costs, regulatory barriers, and inheritance tax changes are pushing rural businesses to the brink, leading to plummeting confidence and irreversible closures. Political figures from the opposition blame Labour's tax policies and National Insurance hikes for devastating generational farms and creating job instability, with some citing impacts on mental health among farm families. Farmers also face additional challenges such as poor harvests due to drought and floods, rising fertiliser costs, and Brexit-related export barriers, compounding the sector's struggles. Advocates call for urgent government intervention with clear, long-term policies to stabilize the rural economy and prevent further losses.