The treasury prohibits the proposed settlement for farmers on the inheritance tax in the United Kingdom

Digest opened free editor

Rola Khaleda, FT editor, chooses her favorite stories in this weekly newsletter.

The Ministry of Treasury has refused to entertain a compromise of the proposal of agricultural groups to alleviate the impact of the tax reforms of the inheritance on the agricultural sector, despite the increasing pressure on the reconsideration of this policy.

Agriculture leaders suggested the Clawback mechanism, which they said would achieve similar revenues with the protection of family farms from the tax, during a long -term meeting between Cabinet Officials and industry.

The groups – the National Union of Farmers, the Farmers Association for Terminors, the Land and Rural Association – criticized the decision of Chancellor Rachel Reeves to end contracts for exemption from death duties for farmers in its budget in October.

But the ministers told the groups that the government will not return to its proposed reforms, which warns this industry that food security in the United Kingdom.

“Our members’ reaction will be a response from anger, which is one of the real anger, the same despair that we have seen in recent months,” said Tom Bradcho, NFU.

We went to the Treasury with a solution. We are aware of the country’s financial hole, “but at the present time, the door is closed from the treasury.”

Clawback – which he suggested for the first time by tax lawyer Dan Nidel from tax policy partners last year – will attract only agricultural assets for tax if sold during an agreed period of time after the inheritance.

This would target the best wealthy individuals who take advantage of the tax exemption, as the groups have argued.

“We have presented a convincing alternative, but the government is deaf to this possibility,” Victoria Vivian, president of CLA, said, adding that it believes that the government’s decision to dig its heels that politics was “ideological.”

“I really didn’t want to believe that this is a paid ideology, but the money is not large enough to justify the attack on our industry,” she said.

One of the officials, who briefed him on Reeves, said that the counselor was determined to move forward in the plan. “We have never suggested that there will be a mitigation,” the official said. “We strongly believe that this is a fair and balanced deal.” The treasury did not immediately respond to a request for comment.

Reforms mean that, as of April 2026, agricultural land owners will be imposed by 20 percent on the ground over a threshold between 1.3 million pounds and 3 million pounds, depending on whether they are married and if they own a house.

The decision has led to a major political reaction, and we are working to stimulate the agricultural society.

Last week, Prime Minister Sir Kerr Starmer was forced to reduce a visit to the development of housing in Milton Keynes after a group of farmers were disrupted in tractors. During a Jarrar protest in London last week, Starmer insisted that “agriculture tops the agenda.”

The opposition parties criticized the reforms, stood by an overwhelming majority with agricultural groups on this issue.

After the meeting, the Minister of Environment in the shadow, Victoria Attins, said that the Labor Party “is clearly not interested in rural societies.”

She added, “Unlike the words that come out of the mouth of Keer Starmer, this is more confirming that farmers are at the bottom of the list of work priorities.”

Tim Farun, a spokesman for the liberal democratic environment and rural affairs, said the government “throws farmers against wolves.”

He warned that “the family farm tax could be the final nail in the coffin of many societies that are struggling to overcome.”

He also called on some of the most important government of the government to reduce reforms.

During a discussion on changes on changes last Monday, Labor Party representatives suggested amendments such as raising the doorstep of the farm, or making an “active farmer test” to prove whether the land is used for cultivation, or to create a claw rear system.