Thirty councils join rebellion against ‘family farm tax’

A growing number of councils across the UK are joining a revolt against the Labour government’s controversial inheritance tax changes, with 30 town halls now openly opposing the policy.

This rebellion has intensified pressure on Labour MPs, particularly in rural areas, to publicly reject the tax hikes.

In recent weeks, these councils have passed motions urging chancellor Rachel Reeves to scrap the tax changes, which farmers argue will devastate family farms.

See also: Farmers take tractors to supermarkets in IHT protest

The policy, set to take effect in April 2026, would impose a 20% inheritance tax on farms and assets worth over £1m.

While the tax rate is lower than the usual 40%, rural groups contend it could affect a significant portion of working family farms, many of which are asset-rich but cash-poor.

The milestone comes as supermarket chain Morrisons expressed support for farmers protesting the new tax. Sophie Throup, Morrisons’ head of agriculture, shared a video message on social media, voicing solidarity with the agricultural community.

Councils in counties including Northumberland, Suffolk, Norfolk, Worcestershire, and West Sussex have been at the forefront of the rebellion, with some Labour MPs facing growing dissent from local leaders.

In Northumberland, hundreds of farmers participated in a tractor rally outside County Hall in Morpeth on Wednesday 15 January, where councillors voted overwhelmingly to oppose the policy.

Similar demonstrations have been seen in Beverley and Worcestershire, with farmers criticising the proposed changes as a threat to their livelihoods.

Mo Metcalf-Fisher, director of external affairs at the Countryside Alliance, warned that this rebellion is only gaining momentum.

“Having councils in areas with Labour MPs openly revolting against the policy is a bad look for Rachel Reeves and Keir Starmer,” Mr Metcalf-Fisher said. “We all know this policy is broken. It threatens our food security, and the rural community is simply asking for an urgent rethink.”

The government’s £5bn investment in farming over the next two years has done little to quell concerns. Many farmers fear that the inheritance tax will make it harder for future generations to take over their family farms, further exacerbating the industry’s financial difficulties.

Nationwide action

A national day of action is taking place today (Friday 17 January), with farmers driving their tractors to supermarket car parks to engage with the public and raise awareness about the inheritance tax changes and their potential impact on food security.

Meanwhile, the NFU will join NFU Cymru, NFU Scotland and the Ulster Farmers’ Union for a “Farming Day of Unity” on Saturday 25 January.

The event will bring together farmers from across the UK to participate in events in town centres to demonstrate visual support for the #StopTheFamilyFarmTax campaign and provide an opportunity for the public to add their local support.