Chancellor Defends Inheritance Tax Changes for Farms

Chancellor Rachel Reeves has faced backlash from farmers and celebrities over proposed changes to inheritance tax on agricultural land, set to take effect in April 2026. The new policy imposes a 20% tax on business and agricultural assets exceeding £1 million, which critics argue will jeopardize family farms and food production in the UK. High-profile figures like Kirsty Allsopp have publicly condemned the reforms, claiming they undermine the ability of farmers to pass on their land. Although Reeves insists that 73% of farms will be unaffected and argues the changes are fair, farmers like Andrew Ward warn that the cap does not adequately reflect the value of their land, making succession financially burdensome. The National Farmers’ Union has echoed concerns, stating that the changes could lead to higher food prices and threaten the viability of rural businesses. Supporters of the policy argue that only the wealthiest estates will be significantly impacted, suggesting that fears may be exaggerated.