Nigel Farage has issued a stark warning to Prime Minister Keir Starmer and Chancellor Rachel Reeves, accusing them of “declaring war on small family farms” over changes to inheritance tax relief on agricultural assets. The Reform UK leader described the move as an “inheritance tax raid” that would “destroy rural communities”.
The controversy stems from Chancellor Reeves' Budget announcement last week, which from April 2026 will subject inherited agricultural assets worth over £1 million to 20% inheritance tax, a change from the previous full exemption. The cap includes land, livestock, farmhouses, sheds and machinery, and the Country Land and Business Association estimates that over 70,000 farms could be affected.
Farage posted a video on social media platform X visiting a 300-acre family farm in his Clacton constituency, speaking with third-generation farmer James Martin. In the video, Farage said: “The Budget has been just the most massive shock for the farmer here.” He highlighted that Elon Musk had also criticised the policy, urging the Labour government to “leave British farmers alone”.
Martin, the farmer, expressed distress over the potential impact, noting that he might have to “stop, to be honest, just so I can keep a roof over the heads”. Farmers who are asset-rich but cash-poor will be hardest hit, as they may need to sell land or machinery to cover the tax bill, risking the breakup of small family farms and damaging food security.
The change has sparked widespread backlash, with celebrity figures such as Jeremy Clarkson and Kirstie Allsopp also criticising the policy. Clarkson argued that farmers “have been shafted”, while Allsopp said the Chancellor had “destroyed the ability [for farmers] to pass farms on to their children”.
