British Farmers Urge Andy Burnham to Abolish Inheritance Tax

British farmers are urging Prime Minister Andy Burnham to completely abolish the inheritance tax on family farms in the upcoming Budget. The tax was introduced in 2024 by former Chancellor Rachel Reeves, applying a 20% levy on estates exceeding £1 million. In response to initial backlash, the government increased the threshold to £2.5 million for individuals and £5 million for married couples.

Agricultural leaders and political opponents argue the levy forces the sale of land to cover tax bills, threatening the viability of multi-generational farms already facing rising costs and poor harvests. The National Farmers Union stated the tax is stifling investment and threatening food-producing businesses. While the government previously defended the threshold increase as a balance between protecting small farms and ensuring large estates contribute, Prime Minister Burnham has indicated he will review the policy.

Opposition from the Conservative Party and Reform UK has intensified, with both pledging to reverse the tax. Reports suggest the government may now abolish or further reduce the levy in the next Budget to provide certainty for the sector.