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last mo.

UK's 'Tractor Tax' Faces Backlash Over Job Losses and Economic Impact

The proposed 20% inheritance tax on high-value farms and businesses is projected to cost 200,000 jobs and £14.9 billion in economic losses.

Children join the farmers rally in Parliament Square in November last year to protest against changes to inheritance tax
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Overview

  • New research suggests the 'tractor tax' could lead to 208,000 job losses and £14.9 billion in economic damage by the next election.
  • Nearly a quarter of family businesses and one in five family farms have already cut jobs or paused recruitment since the tax was announced.
  • The Treasury claims only farms worth £3 million or more will be affected, but Defra figures indicate up to 66% of family farms could face the tax.
  • The Office for Budget Responsibility has warned the tax may generate less revenue than anticipated, with high uncertainty in projections.
  • Farmers and business groups continue to protest the policy, arguing it harms rural communities and family-run enterprises, while the government defends it as necessary to address a £22 billion deficit.