Britain’s farmers have raised the alarm over the future of the industry, warning that Labour’s new inheritance tax reforms could force widespread sales of land, job losses and a collapse in investment. The concerns follow a new poll by the Country Land and Business Association (CLA), which represents 28,000 farmers and rural businesses across England and Wales.
The survey of nearly 500 CLA members found that almost 80 per cent of farmers fear their businesses will not survive the next decade. More than 30 per cent said they had seriously considered selling their farms and leaving the industry within five years, while nearly 70 per cent expect they will be forced to sell land or take on debt simply to stay afloat.
At the centre of farmers’ anxieties is the government’s decision to overhaul inheritance tax rules. From April 2026, inherited agricultural assets valued above £1 million will face a 20 per cent levy — a dramatic shift from the previous full exemption. The Treasury expects the policy to generate around £520 million annually by 2029.
Farmers argue the change will have devastating consequences. According to the CLA, 90 per cent of farmers have delayed or paused investment since the announcement last October, with more than a quarter putting off plans worth over £150,000. CLA president Victoria Vyvyan warned that the reforms would dismantle businesses that have sustained rural communities for generations.
“Our polling shows these reforms will force hard choices on farms — selling land, laying off staff and shelving future plans,” Vyvyan said. “Some families are questioning whether they can even hand their farms on to the next generation.”
The poll also revealed striking political implications. Not a single farmer surveyed said they would vote Labour at the next general election. Instead, 38 per cent backed the Conservatives, 36 per cent favoured Reform UK, and 21 per cent were undecided. The Liberal Democrats received less than 4 per cent support. Vyvyan cautioned that Labour risks alienating its rural MPs if they back the policy, saying, “If they support it, their voters won’t forget.”
The reforms come at a time of mounting pressures on British agriculture. The National Farmers Union (NFU) has warned that many medium-sized farms will struggle to generate enough income to pay the tax without selling off land. Rising costs, global market volatility, new regulations and the abrupt closure of the Sustainable Farming Incentive scheme earlier this year have added to farmers’ difficulties.
The Commons environment, food and rural affairs committee has urged ministers to delay the inheritance tax changes by at least a year, citing insufficient consultation and affordability analysis. However, Defra has defended the reforms, pointing to a record £11.8 billion allocated for sustainable farming and highlighting that a large share of existing agricultural tax relief benefits only a handful of wealthy estates.
Despite government assurances, confidence in the sector is faltering. With farmers openly questioning whether they can survive another decade, the reforms are fast becoming a defining test of Labour’s relationship with rural Britain.
