Family farms could vanish as new tax plan threatens British agriculture

-Credit:Reach Publishing Services Limited
-Credit:Reach Publishing Services Limited


The future of Britain’s family farms is hanging in the balance, warns Charles Day, a fourth-generation farmer from Toddington, Gloucestershire. If proposed changes to inheritance tax are implemented, he says, many family-run farms like his will be forced to sell off land, potentially dismantling a tradition that has existed for centuries. “The smaller family farms are just about surviving now. They will disappear,” he says.

The Day family farm was established in 1944 and has now passed through four generations, with the fifth just starting out. Charles works alongside his father, uncle, brother, and cousin, all dedicated to continuing the family legacy. However, he fears that the government's proposed tax policies will make that nearly impossible.

“The tax implications coming through from this autumn budget will mean we will have to sell off a huge chunk of land to pay it,” Charles explains. “The new tax gives you ten years to pay it, but our profits aren't enough to cover another tax on top of everything else we’re already paying.”

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Unlike other taxes, he points out, inheritance tax does not consider what a business can actually afford. “Income tax works out what you can afford, but most farmers can't afford this tax,” he says.

Beyond his own farm, Charles believes the impact will be devastating across Gloucestershire and the wider South West. “It will affect tenant farmers just as much, if not worse,” he warns. “Landowners will just sell off land, which means tenant farmers will be turfed off because they don’t want a sitting tenant on the land that’s being sold.”

As county chairman for the Gloucestershire branch of the National Farmers' Union (NFU), Charles has been actively campaigning against the proposed tax changes. He recently took part in a mass lobby event in London alongside other farmers from the South West, pressing MPs to take their concerns seriously.

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“The mood among farmers is really worrying,” he says. “We need to work with the government to make them understand how damaging this will be to all farmers across the country and how deeply it will affect food security.”

He highlights the growing global instability, from the war in Ukraine to conflict in the Middle East, as a reason why the UK must not become reliant on food imports. “We need to be able to grow our own food safely and securely with people who know how to do it,” he says. “If we can’t farm it, then what?”

Charles also notes the unfairness of the current supply chain, which leaves farmers at a disadvantage. “The food we produce is very safe and nutritious, but we aren’t being fairly paid across the whole supply chain,” he says. “We are price takers, not price setters, so we have to take what we’re given—and at the moment, that isn’t enough.”

Despite efforts to raise awareness, Charles feels the government has been largely unresponsive. While some MPs, such as Liberal Democrat Cameron Thomas and Conservative Sir Geoffrey Clifton-Brown, have shown support, he says the real challenge is convincing Labour MPs to engage.

“They have a huge majority in power at the moment,” he says. “As great as Cameron Thomas and Sir Geoffrey are, they can’t do much from the outside. It’s got to be the Labour MPs speaking with the Treasury, Number 11, and the Prime Minister.”

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Charles believes the government needs to clarify its objectives with the tax changes. “If their aim is to break up family farms, then fine, they’re succeeding. If they’re targeting large landowners who are buying up land to avoid tax, then they need to tweak the rules so they actually hit the people they want to, rather than attacking every farmer.”

For Charles, farming isn’t just a profession—it’s a calling. “It means everything,” he says. “We’re very lucky to live in a beautiful part of the world. No two days are the same.”

As an arable farmer, he primarily grows milling wheat, along with vining peas and salad onions in partnership with other businesses. “I love harvest,” he admits. “It’s a culmination of a year’s worth of work, bringing it all in as a team. It’s hard work, but we do it because we love it.”

However, the challenges facing farmers go beyond taxation. He has noticed significant changes in the weather over the past decade, with prolonged wet spells making farming increasingly unpredictable. Meanwhile, post-Brexit subsidy reforms have left farmers in limbo as they adjust to a new, environmentally focused support system.

“The government keeps moving the goalposts,” he says. “We’re constantly facing volatility, whether it’s fertiliser costs or market uncertainty. It’s becoming harder to plan and survive.”

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Charles urges the public to support farmers by signing petitions, contacting their MPs, and engaging with campaigns like the recent Day of Unity.

“We don’t want to do protests,” he insists. “That’s why we’re holding a Day of Unity—to help people understand where we’re coming from and answer their questions.”

At the heart of the campaign is a simple message: farmers aren’t looking to avoid tax. They just want to ensure that British agriculture can continue for future generations.

“We feel like custodians of the land,” Charles says. “We’re not here trying to make millions. We just want our time with our land—to look after it, improve it, do the best we can, and feed the nation.”

A Government spokesperson said: “Our commitment to farmers remains steadfast. This Government will invest £5 billion into farming over the next two years, the largest budget for sustainable food production in our country’s history.

“We are going further with reforms to boost profits for farmers by backing British produce and reforming planning rules on farms to support food production. Our reform to Agricultural and Business Property Relief will mean estates will pay a reduced effective inheritance tax rate of 20%, rather than standard 40%, and payments can be spread over 10 years, interest-free.

“This is a fair and balanced approach, which fixes the public services we all rely on, affecting around 500 estates a year.”