Rachel Reeves has dealt a crushing blow to Britain’s beleaguered farmers by refusing to scrap her inheritance tax raid and offering only the tiniest concession, a farming activist has claimed. By pressing ahead with her inheritance tax raid, offering only a limited spousal transfer concession and refusing to raise the £1 million cap on 100% agricultural relief, the Chancellor’s second Budget – delivered yesterday amid chaotic scenes after key Office for Budget Responsibility forecasts were accidentally leaked 30 minutes early – confirmed the 20 % effective rate on farm assets above the threshold from April 2026.
Gloucestershire farmer Liz Webster, founder of Save British Farming, who runs 300 head of beef cattle near Cirencester, accused the Chancellor of ignoring thousands of rural families. She said: “Reeves has delivered her second Budget, and while it calmed Labour MPs inside Parliament, it hasn’t convinced the public.
Voters were hoping this Budget would finally give them some relief on the cost of living, but instead it raised more taxes and didn’t offer a clear plan for lowering everyday costs. MPs feel more relaxed because the Budget eased tensions inside the party, but the country still feels frustrated and unheard.
“Experts say this Budget doesn’t solve the core problems. Freezing tax thresholds means people will quietly pay more tax as their wages rise. Services like schools still face cuts.
“Growth forecasts have been marked down again. And there’s confusion in government — even different departments are arguing with the OBR over the numbers. So while the Budget might have stabilised Labour internally, it hasn’t stabilised the economy or people’s daily lives.
“But there is a clear positive way forward that people are ready to hear: if Britain wants to bring down the cost of living for good, it has to invest properly in its food system.
“Cheaper food doesn’t come from cutting standards or importing low-quality products. It comes from making the UK more self-reliant, building strong food supply chains, backing local production, and reducing our dependence on expensive imports that keep prices high.
“A government that invests in food is investing directly in lower prices, better health, and national stability. That’s the real route to making life affordable again. People want a plan they can believe in — not just tax changes, but a long-term strategy for cheaper, better, more secure food for everyone. This is where hope lies, and it’s the message that can cut through now.
“The budget was sticking plaster for Starmer and Reeves to placate their party. But it’s delivered more pain to everyone else.”
Her words echoed the anger of thousands of farmers who staged a “Day of Unity” tractor protest in London and rural counties only hours earlier.
The National Farmers’ Union said the confirmed policy still puts 60,000 family farms at risk and could cut UK food self-sufficiency by 10–15%. Defra figures show farm business incomes already down around 25% this year.
Combined with yesterday’s employer NIC rise and National Living Wage increase, industry leaders warn of accelerated land sales to investment funds and overseas buyers.
Treasury officials insist the changes affect fewer than 500 estates a year. Ms Webster dismissed the claim.
Labour’s rural support has collapsed to single digits in many seats. This Budget will not stop that slide – it will speed it up. Farmers and families deserved better than a sticking-plaster for the party and fresh pain for the countryside.
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