Farmers march in inheritance tax protest in London

Thousands of people have protested in London over changes to inheritance tax for farmers announced in the Budget.

Among those marching to Whitehall was Jeremy Clarkson, who said “it’s the end” for farmers, as he called for the government to change its mind.

Prime Minister Keir Starmer said he understood the concerns of farmers and “wants to support” them, but “the vast majority of farms, would be unaffected at all by this”.

From April 2026, inherited agricultural assets worth more than £1m, which were previously exempt, will be liable to the tax at 20%, half the usual rate.

Other allowances could mean a married couple or those in a civil partnership could pass on a farm worth as much as £3m without paying inheritance tax.

The Met Police estimated there more than 10,000 people took part in the protest to Whitehall, which has now ended.

In response to video on social media appearing to show tractors knocking over police signs at the protest, the Met said “driving over a police barrier line is not acceptable and the drivers will be reported for the offence”.

Clarkson said he said he thought the change to inheritance tax was “a very rushed last-minute decision”.

“I think we all make mistakes in life, and I think it’s time for them to say ‘you know what, we’ve cocked this one up a bit’ and back down.”

National Farmers Union (NFU) president Tom Bradshaw told protesters the changes were the “straw that broke the camel’s back”.

The number of farms that could be affected by the inheritance tax change is disputed.

The government says it will only affect the wealthiest 500 estates each year but the NFU and the Country Land and Business Association (CLA) have estimated up to 70,000 farms could be affected.

Inheritance tax rules mean the amount people are liable to pay may vary.

• Under the new rules farms would be affected by the 20% inheritance tax on any value above £1m (not on the whole value)
• There is no inheritance tax to be paid on the value of property up to £325,000, bringing the untaxed total to £1.325m
• If a farmer is married, their spouse would be able to pass on another £1.325m tax free, taking the total untaxed amount to £2.65m
• In addition, there is an £175,000 tax-free allowance on a main residence when it’s being passed on to children or grandchildren. This brings the total untaxed amount for a farming couple to up to £3m

Among those attending Tuesday’s events was Gloucestershire livestock farmer David Barton, who has a 265-acre farm near Cirencester that has been in his family since 1913.

He estimates his 400-cattle business is worth around £5m and is worried the proposed changes to inheritance tax could see his son facing a £800,000 bill.

“This budget has just ripped the heart out of us because I know my son will not be able to pay the inheritance tax,” he said.

He is now considering gifting his estate, which he believes would fall outside of inheritance tax if he does not die within seven years, but feared he was not in a financial position to stop working.

Baroness Minette Bridget Batters, a farmer and ex-NFU president, has called for measures to protect farmers from additional costs.

She told Today it felt like “the penalties just continue to grow” for farmers, with the rise in the National Living Wage, National Insurance hikes and now the inheritance tax.

Speaking to broadcasters from the G20 summit in Rio de Janiero, the prime minister insisted that the “vast majority” of farms would be “unaffected” by the Budget changes.

Sir Keir – who highlighted his childhood growing up in the countryside – said that he “gets” farmers’ concerns and that the Labour government is using the Budget to invest in other areas which affect rural communities, such as hospitals, schools and housing.

He said £5bn was pledged over two years “in farming and food sustainability. That’s hugely important for farmers, an additional amount for flooding that impacts them and on disease outbreak”.

When pressed on whether any changes could be made to the inheritance plans, the PM replied: “I think it’s very important for me to keep making the case that it’s only farms and assets over £3m in a typical case of parents wanting to pass on to their children, and therefore, for that reason, I’m confident that the vast majority of farms will not be affected.”

Ahead of the rally, student Alaw Jones, who is the ninth generation of her family to farm livestock in west Wales, said her parents had always planned to hand down the business to her and her sister but now “all the work they have done to build the business and get this farm to stand on its own just feels like it’s for nothing”.

She added: “Mental health is a massive issue in the agricultural industry and this feels like the final nail in the coffin for those farmers who are already struggling.”

Rupert Dale’s family run a hay farm on the Worcestershire/Shropshire border supplying livestock farmers across the country.

He said the family now fear they will have to sell up, explaining: “Me and my brother would have to pay an immense sum for our farm to carry on and that’s a sum that we spoke about together as a family that we would not be able to finance and afford.”

Students’ Union president Alexandra Godfrey said: “I think this is one of the most pressing challenges in the farming sector and we all need to rally together to tell the government how we feel. If not now, when?”

Shortly before the rally ended, Conservative Party leader Kemi Badenoch took to the stage to loud cheers as she pledged to reverse what she called “the family farms tax”, which she said would “destroy farming as we know it”.

“We know the burden that farmers are carrying… we want you to know that we have your backs,” she said.

Badenoch went on to list some difficulties farmers face, including climate change, before suggesting that farming is “critical to growth” and warning that young farmers will leave if the tax change goes ahead.

“Farming is the backbone of this country,” she said.

The Liberal Democrats said it was “utter rubbish” to say only 500 of the UK’s wealthiest farmers’ estates would be affected each year.

The party’s environment spokesman Tim Farron told BBC Breakfast: “The only way that people can pay the inheritance is get rid of the farm – so corporates buy it.

“It’s cruel, it’s unfair, it’s also incredibly stupid”.