Overview

• Labour's Budget introduces a 20% inheritance tax on agricultural and business assets over £1 million, effective April 2026, affecting family farms and businesses.
• Farmers and business owners warn that the changes could force sales of assets or entire businesses to cover tax liabilities, threatening economic stability and family legacies.
• Critics, including Elon Musk and former Labour shadow chancellor Ed Balls, argue the policy could undermine Britain's food security and harm rural communities.
• The National Farmers Union disputes government figures, claiming the tax will affect more farms than estimated, and is organizing a protest in Westminster later this month.
• Supporters of the reform argue it targets only the wealthiest estates and will raise £2 billion annually, while opponents see it as a cultural and economic threat.