Farmers warn that IHT changes are wrecking rural livelihoods
26th August 2025
Hundreds of farmers have expressed their anger with the family farm tax, saying that the legislation is wrecking trust, livelihoods and Labour’s future in rural seats.
The survey carried out among 500 farmers and landowners by the Country Land and Business Association (CLA) has highlighted the far-reaching consequences of the Treasury’s plans to cut vital inheritance tax reliefs for farms and family businesses from April 2026.
Nearly 80% of respondents said they are worried their business will not survive the next ten years, while over 60% have considered selling their farm and leaving the industry.
Not a single respondent of the 500 said they would vote for Labour at the next election, while 36% said they would back Reform, with the Conservatives on 38%, CLA confirmed.
Earlier this summer the Treasury published an impact assessment of the changes, along with the draft legislation of the policy. It claimed capping inheritance tax reliefs will not have ‘any significant macroeconomic impacts’.
The assessment argued it ‘is not expected to have a material impact on food security’ and ‘would not be expected to impact the UK’s ability to source imports from international markets’.
Victoria Vyvyan, CLA president, said that the findings of this new survey cast doubt on these claims.
‘Voters won’t forget’
Ms Vyvyan added: “The Treasury says these reforms will barely touch rural Britain. Our polling shows they will force hard choices on farms that have sustained communities for generations – selling their land, laying people off, shelving plans for the future.
“Already, families are weighing up which parts of their business they can afford to keep. Some are holding back investment; others are wondering if they can hand the farm on at all.
“Rural Labour MPs can see what’s coming. They know it will drain the life from the countryside and strip away the trust of the people who sent them to Westminster. If they support it, their voters won’t forget.”
Meanwhile, 69% of respondents said they will have to sell land or take out loans to keep the business – with nearly half predicting they will have to sell at least a quarter of their farm.
The study also found that 89% of respondents have paused or delayed investment since the Budget, with 27% saying they have held back from investing over £150,000.
A separate study earlier this year, commissioned by Family Business UK and conducted by independent consultancy CBI-Economics, found that more than 200,000 jobs could be lost during this Parliament.
The changes could produce a net fiscal loss of £1.9 billion for the Treasury and wipe £14.9 billion from the economy in lost business activity, it concluded.
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