PM doubles down on farm inheritance tax plans

Prime minister Keir Starmer has doubled down on his government’s controversial plans to introduce farm inheritance tax, set to take effect in April 2026.

In an interview with ITV News West Country, Sir Keir addressed growing concerns from farmers and rural communities, defending the move as necessary for the long-term sustainability of public services, including the NHS and schools.

“The vast majority of farms will not be impacted by the changes we announced in the Budget,” the PM argued. “And for those that are affected, they will only pay inheritance tax at half the rate that other people pay, and they can pay it over a number of years.”

See also: NFU condemns tractor protest and prime minister’s comments

The PM’s comments are a hammer blow to the farming community and they come on the eve of a crucial meeting in London between Treasury ministers and the NFU and other farming organisations on the issue.

‘The vast majority of farms are not going be touched’

The PM rules out any changes to inheritance tax for farmers after months of protests, saying those who have to pay ‘can pay it over a number of years’

Sir Keir Starmer tells ITV West Country he needs to ‘prioritise the NHS’… pic.twitter.com/5BQbOAfLsR

— ITV News West Country (@itvwestcountry) February 17, 2025

Despite reassurances from government that only 520 farms a year will be affected by the changes, analysis from the NFU, Country Land and Business Association and the Central Association of Agricultural Valuers suggests far more farms – up to three-quarters – will be implicated.

Many farmers fear the policy could force them to sell family-owned land in order to meet the tax bill.

In his comments, Sir Keir acknowledged the concerns from the farming sector but remained firm in his justification for the changes.

“I understand the concerns, but we have to prioritise the needs of our NHS and schools, especially in rural communities,” he said. “We needed to make tough choices, and the choice I made was to prioritise funding for our healthcare and education systems.”

The PM argued that the investment in the NHS, which has been struggling with long waiting times and underfunded services, is essential for rural areas, including farming communities.

“The good news is that as a result of those tough choices, I can announce that waiting lists are coming down. That’s a relief to every community, including farming communities.”

NFU president Tom Bradshaw said: “It’s not reasonable to suggest that raising between nothing and £500m – the varying estimates of what the new tax will bring in – will determine the future of the NHS or UK schools.

“We have meetings tomorrow with the exchequer secretary [James Murray] where we hope that he will welcome and consider these proposals properly.”