Dame Angela Eagle has ruled out softening the inheritance tax hike on farmland, despite growing anger from rural communities who warn the move could push family farms out of business.
The farming minister said the Treasury is not “going to move” on Chancellor Rachel Reeves’ plans, which were announced last October and are due to come into force in April 2026.
The controversial measure will see agricultural property relief (APR) capped at £1 million, with anything above facing a 50 percent liability.
Farmers have warned that families could be forced to sell land, livestock and equipment to pay the bills, leaving businesses unviable.
Speaking on the BBC’s Farming Today on Friday (17 October), Eagle stressed: “The announcements have been made and the situation will be as it was announced.
"But remember that three-quarters of estates will continue to pay no inheritance tax at all, while the remaining quarter will pay half of the inheritance tax that most people pay."
Earlier this month, reports suggested the Treasury had been presented with other models in the run up to November's autumn budget, including the “minimum share rule” proposal from the Centre for the Analysis of Taxation (CenTax) that would overhaul the current system.
Under this approach, full relief would apply up to £5 million per person (£10m for couples) where farmland or business assets make up at least 60% of an estate. Between £5m and £10m there would be 50% relief, with no relief beyond £10m.
Advisers described the idea as a potential “game changer” for British agriculture, claiming it could not only protect small and medium-sized farms but also double projected revenues from the reform — raising an estimated £1bn instead of £500m.
But Eagle told the BBC earlier today: "I’m afraid there aren’t going to be any changes with respect to the announcement that were made previously about inheritance tax, in this instance.
"We have been in discussions, the Treasury have made their announcements and they aren’t going to move."
For almost a year, farming groups have rallied against the government’s plans, with thousands protesting in Westminster and a new nationwide “day of unity” protest set for 24 November.
This will feature tractor-led go-slow demonstrations, with farmers staging protests on major routes across England, Wales and Northern Ireland.
Organised by numerous grassroots groups, including Farmers To Action and Digon Yw Digon (Enough is Enough), they argue the current scheme risks penalising family businesses that underpin the UK’s food production.
With Reeves holding firm and farmers vowing to escalate their action, the standoff over inheritance tax looks set to become one of the most heated flashpoints between government and the countryside in the months ahead.
