Four in five farmers fear their businesses will collapse within a decade, as anger grows over the Labour government’s inheritance tax proposals.
The figures are included in new survey published today (26 August), revealing deep concern across the sector as the government pushes ahead with the so-called 'family farm tax'.
The poll of 500 farmers and landowners, conducted by the Country Land and Business Association (CLA), found 80% worried about survival over the next ten years, while more than 60% have considered selling their farms and leaving the industry altogether.
The survey comes as the Treasury presses on with controversial plans to cap agricultural and business property relief from April 2026.
But the political fallout is stark. Not a single respondent said they would vote for Labour at the next election, with support split almost evenly between the Conservatives (38%) and Reform (36%).
The findings highlight the potential electoral cost for Labour in rural constituencies, many of which it is targeting in its bid to return to power.
Earlier this summer, the Treasury published its impact assessment alongside draft legislation. It argued that capping inheritance tax reliefs would have no “significant macroeconomic impacts”, was “not expected to have a material impact on food security” and would not affect the UK’s ability to import food.
But the CLA’s findings directly challenge those claims. “The Treasury says these reforms will barely touch rural Britain," said the body's president, Victoria Vyvyan said.
"Our polling shows they will force hard choices on farms that have sustained communities for generations – selling their land, laying people off, shelving plans for the future.
“Already, families are weighing up which parts of their business they can afford to keep. Some are holding back investment; others are wondering if they can hand the farm on at all.
“Rural Labour MPs can see what’s coming. They know it will drain the life from the countryside and strip away the trust of the people who sent them to Westminster. If they support it, their voters won’t forget.”
The survey revealed that 69% of farmers expect to sell land or take out loans to keep their businesses afloat, with nearly half predicting they may have to sell at least a quarter of their farms.
Almost nine in ten respondents have already paused or delayed investment since the budget, with over a quarter (27%) holding back more than £150,000.
Separate research earlier this year by Family Business UK and CBI-Economics warned that the reforms could cost more than 200,000 jobs during this parliament, lead to a net fiscal loss of £1.9 billion for the Treasury, and strip £14.9bn from the economy in lost business activity.
