'We're in a time of crisis' claims Peterborough area farmer in Government plea

A farmer near Peterborough believes it is difficult to overlook the issue of inheritance tax ahead of the Spring Spending Review.

From April 2026, landowners would have to pay 20% per cent tax on assets worth more than one million pounds, payable in instalments over 10 years interest-free.

Landowners have been exempt from paying inheritance tax through Agricultural Property Relief since 1984 under certain conditions.

"I can't think beyond inheritance tax because we just won't be there (existent)," farmer Tom Martin said.

The Government say that the valuation of property would include things such as farm vehicles, farm tools and livestock.

It said the tax change would stop wealthy landowners from buying up the property to avoid the tax.

But Chancellor Rachel Reeves has previously said "73 per cent of the farms" will pay no extra inheritance tax under the reforms.

'Pressure is building'

Tom - whose family have been farming across four generations - remains fearful for the future.

"Pressure is building up and I can see groups breaking out, doing ridiculous things we don't want to be doing; we're in a time of crisis," he said.

"We're condemning families that've farmed for generations out of existence."

Last month, Environment Secretary Steve Reed was quizzed by farmers at a National Farmers' Union Conference about the tax changes.

Mr Reed said that "my focus is on ensuring farming becomes more profitable because that’s how we make your businesses viable for the future.

"And that’s how we ensure the long-term food security this country needs."

Tom believes with a thriving industry, there are "huge amounts of positives" that farming provides, and is keen to work with the Government on how it can support farmers.

"I want to support them (the Government), and there is no shame when new evidence comes to light of how many farming families and rural communities would be affected," he added.

"There is no shame in updating policy."

Government 'going further' to help farmers

A Defra Spokesperson said its "commitment to farmers is steadfast.

"We are going further with reforms to boost profits for farmers by backing British produce, reforming planning rules on farms to support food production, and making the supply chain work more fairly," they said.

The spokesperson said it is recruiting 8,500 mental health professionals across the NHS to help tackle "the mental health crisis in our farming communities.

"Our reform to Agricultural and Business Property Relief will mean three quarters of estates will continue to pay no inheritance tax at all.

"While the remaining quarter will pay half the inheritance tax that most people pay, and payments can be spread over 10 years, interest-free.

"This is a fair and balanced approach which helps fix the public services we all rely on."

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