On Monday, Keir Starmer reiterated the government’s claim that “the vast majority of farms and farmers will not be affected not at all,” despite warnings that the Treasury Department has vastly underestimated the impact.
The NFU has warned that two-thirds of farms will be affected by the tax, while the government estimates that only 27 percent would be forced to pay.
The Prime Minister told reporters on Monday that he “understands that this is a concern”. However, Ms Reeves has refused to change or pause the policy.
Farmers say they will be forced to sell farmland to pay the tax because of the small profit margins in farming compared to the value of assets. This would then endanger food safetythey warned.
Support groups in rural areas also warn about it a growing mental health crisis among farmers about the tax, which will come into effect from April 2026.
Baroness Mallalieu, who is also chair of the Countryside Alliance, said: “Devastating family farms is an unforeseen consequence resulting from hasty decision-making by the Ministry of Finance.”
“Unfortunately, this will only underline the perception that Labor has become an urban party, disconnected from the large proportion of the community who live and work in rural areas,” she said.