Farming across Britain will soon be transformed into a landscape of solar panels and ‘green schemes’ run by corporate giants if Labour’s new inheritance tax hike hits, rural experts have warned.
Keir Starmer’s inheritance tax policy, introduced in the recent Budget, slaps a 20% levy on family-owned farms valued over £1 million.
Many farmers fear this will lead to mass sell-offs, with big businesses hungry to snap up land for solar panels, wind farms, carbon offsetting and other ‘green initiatives.’
The Country Land and Business Association (CLA) warns that if family farms are forced to sell up, the countryside could be swamped by corporations looking to take the land over.
Speaking to the Telegraph, Victoria Vyvyan, president of the CLA, said: “If family farms are forced to sell, the land won’t just go to neighbours. Buyers may include corporations needing carbon offsets, local councils eyeing development, and lifestyle buyers.
“Environmental charities may also step in, using the land for ecosystem services, biodiversity projects, and new habitats. Unlike farmers, they’ll face no inheritance tax.
“We know from experience that all these options can lead to responsible land stewardship. But each risks breaking the vital link between the land and those who know it best – those who live and work on it every day.”
The National Farmers’ Union (NFU) is so concerned it’s planning a mass rally outside Parliament on November 19, calling for a rethink on what the Conservatives have branded Labour’s “cruel family farms tax.” New Conservative leader Kemi Badenoch pledged that if elected, the Conservatives would reverse this tax, standing up for Britain’s farming families.
However, with years of a Labour’s term still to run, Property expert Chris Thyer said Labour’s tax raid could start driving more and more farmers to lease fields for solar and wind farms. He explained that if farms face taxes on their land anyway, they may turn to renewable energy projects to generate the funds to pay the bill. “With the tax burden on farmland, renewables suddenly look a lot more viable as an income source,” he said.
Food Prices and Security at Risk
Retailers have also warned that the tax changes could jeopardise the UK’s food security, potentially leading to higher prices at the supermarket. The NFU estimates that roughly two-thirds of working farms could hit the tax threshold, contrary to the government’s suggestion that 73% will escape the impact. According to the NFU, the government’s figure includes small, unproductive holdings and doesn’t account for the many farms essential to Britain’s food supply.
For farming families across the UK, the consequences are alarming. “Farmers are already struggling with rising costs, inflation, and decreasing subsidies,” said an NFU spokesperson. “Adding this tax could mean they’re forced to sell land just to cover the bill, putting our rural heritage, and food security, at risk.”
As family farmers brace for this looming tax burden, rural Britain could face a seismic shift, one that critics say has been triggered by Starmer’s “out of touch” approach to the countryside. As the Budget row continues to unfold, the stakes for Britain’s heartland have never been higher.