Trump’s comments about abolishing IHT for farmers stir UK-wide debate
29th July 2025
The British farming community has responded to yesterday’s comment made by US president Donald Trump that farmers should not be paying the family tax.
Yesterday, 28th July, UK prime minister Keir Starmer and US president Donald Trump attended a televised meeting at the Turnberry hotel in South Ayrshire, Scotland.
The PM was visibly surprised when president Trump said that he “ended” the agricultural business and property tax, suggesting that the UK government should do the same.
President Trump pointed out that farmers keep their businesses not to make money but because this is their “way of life”.
He added that many US farmers lost their lives to suicide due to worries about the estate tax payout, which is similar to the UK’s inheritance tax.
‘It means a huge deal for our community’
NFU has responded to president Trump’s comment on X (formerly Twitter) by saying: ‘Thank you for backing your farmers, Mr President. We need our government to do the same and #StopTheFamilyFarmTax.’
While talking to GB News, Mo Metcalf-Fisher, external affairs director at Countryside Alliance, said: “Trump is clear; he’s taking massive steps to help his farmers. Whatever anybody may think of president Trump, he clearly cares about his farmers.
“We had the prime minister sat here today sort of gazing really awkwardly as Trump was outlining what he would do, and actually he scrapped the equivalent of the inheritance tax there.
“We’ve been crying out for the prime minister and Rachel Reeves to what the rural sector has to say, and they haven’t.
“There’s still time. I appreciate that Donald Trump has made this intervention. I’m not sure he necessarily meant to, but he has, and it means a huge deal for our community.”
CLA director of external affairs Jonathan Roberts said: “Everyone knows this is a disastrous policy. Donald Trump knows it. Left wing tax campaigners know it. Backbench Labour MPs know it. I’m sure deep down Treasury Ministers know it too. But most of all, farmers and family business owners across the land know of the devastating impact these reforms will have.
“It’s time for ministers to take a deep breath and accept they’ve got it wrong. Every day they carry on pretending their reforms will work is another day the economy is being harmed.”
CLA president Victoria Vyvya said that rural businesses are being “pushed to the edge”.
Johnnie Furse, a spokesperson for the Countryside Alliance, added: “It is abundantly clear to most people that the family farm tax will be devastating to farmers and rural communities – in fact, recent data has shown its catastrophic effects to already be taking place.
“Many, then, will have been interested to see president Trump speaking about how steps have been taken in the United States to alleviate similar concerns amongst American farmers.
“We hope that Keir Starmer takes note, and finally engages and works with the British farming community to find a solution that will not cause destruction to the farming sector and rural communities.”
Watch the video:
Keir Starmer appears to look on awkwardly as President Trump discusses steps he has taken to help US farmers in response to a question from @beverleyturner about the family farm tax.
— Mo Metcalf-Fisher (@mometfisher) July 28, 2025
Comes as a record number of farms were forced to close this year in wake of the Budget⬇️ pic.twitter.com/my3bqIujCj
An alternative needed
Earlier this month, the UK government outlined plans to hold a technical consultation on the draft legislation, including on inheritance tax, to ensure it “works as intended” before the next Finance Bill, which will take place in autumn 2025.
NFU explained that this is a common process in the development of a Finance Bill, but given the “appalling consequences” of this legislation, the union said it will be holding the government to account on every element of this policy.
A spokesperson for the union said: “The NFU has repeatedly provided evidence that the current policy does not achieve the government’s intentions of closing a loophole, protecting family farms, or generating as much revenue as it should. Nor do we agree that it is ‘not expected to have a material impact on food security’.
“On the other hand, the NFU’s ‘clawback’ solution would allow the Treasury to raise the revenue it seeks without tearing apart farming families or jeopardising domestic food production.”
Since the Budget in November 2024, swathes of MPs from all parties, including members of the government’s own backbenches, alongside county councils, farming and business organisations, the food supply chain and over a quarter of a million members of the British public have joined the call to stop the family farm tax.
Even the Office for Budget Responsibility and the government’s own EFRA Committee have highlighted the impact these reforms will have on vulnerable elderly farmers.
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