Thousands of family farms shut in the run-up to Labour’s inheritance tax U-turn
More than 6,200 family farms have closed following Chancellor Rachel Reeves’ announcement of a controversial inheritance tax plan during last year’s Budget, reports BritPanorama.
This figure, reported by the Office for National Statistics, represents the highest number of closures since records began in 2017. The data reflects a challenging environment for farmers, exacerbated by ongoing economic pressures and uncertainties.
Following a recent decision to raise the inheritance tax threshold from £1 million to £2.5 million—a move celebrated by many, including TV farmer and campaigner Jeremy Clarkson—experts warn that the damage may be irreversible. David Exwood from the National Farmers’ Union stated, “The number of closures underscores the challenges and lack of confidence.”
He noted that multiple factors are contributing to the crisis: “Cash flow pressures, extreme weather, global volatility, the family farm tax, and uncertainty over environmental schemes have all made it harder.” The situation has prompted sector representatives to call for comprehensive support measures to aid struggling farms.
Victoria Atkins, shadow environment secretary for the Conservative Party, welcomed the Labour U-turn but lamented the high cost incurred by the farming community. She asserted, “And that will not be forgotten, I suspect.”
Local farmer Clive Bailye expressed the stark impact on the industry, stating, “Since the 2024 Budget, this has been a huge dark cloud hanging over the industry, which has taken away the incentive to continue.”
The closures highlight an urgent need for political solutions to ensure the sustainability of family farming in the UK.
The rise in farm closures illuminates the broader socio-economic implications of tax policies and highlights the fragility of agricultural livelihoods amid fluctuating market conditions.
