Have your say: Figures don’t back up NFU claims on IHT, says Reed

Defra secretary Steve Reed has gone to war with the NFU, insisting it is wrong to claim that up to 75% of small farms could be affected by Labour’s inheritance tax (IHT) changes. 

In an interview with Farmers Weekly on Tuesday 19 November, Mr Reed again defended his government’s IHT changes for farms, describing the measures as “fair and proportionate”.

At the NFU’s mass lobby event in Church House, Westminster, also on 19 November, union president Tom Bradshaw told the gathered farmers that he believed up to 75% of small farms could be impacted by the IHT reforms.

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See also: London Farming Rally: What you need to know

But Mr Reed said: “The figures don’t back up what he’s saying, I’m afraid.

“We are only asking the wealthiest individuals and the largest farms to pay their fair share. Farms below the threshold will be unaffected.”

Mr Reed stressed that government data, which had been validated by both the Independent Office for Budget Responsibility (OBR) and the Institute for Fiscal Studies (IFS), showed that only about 500 estates would be required to pay anything more as a result of the reforms.

This figure of 500 estates has been used by ministers as a proxy for farms.

But NFU director of strategy Nick von Westenholz has repeatedly expressed concern that there is a misunderstanding in government about what the term “estate” means in this context.

On X, he posted: “These are estates as in the assets less liabilities of the deceased, NOT landed estates. That’s why it’s a bad proxy for farm businesses. I increasingly worry this distinction has been missed by some in government.”

The proposed tax changes, set to take effect in April 2026, have sparked widespread backlash from farming communities, with many arguing that the new effective 20% IHT rate on agricultural assets exceeding £1m will force farmers to sell land or businesses to cover the tax liabilities.

A major farmer protest is taking place in London today (19 November) over the plans, with the agricultural community preparing for an ongoing battle.