Farming family fear for the future

Twins Lucy and Emma Gregory hope to carry on the family farm in Hampshire together with their brother Thomas

There is no doubt this farm is a family affair.

This morning's task of cleaning out a cattle shed sees owner Steven Gregory and his two daughters Emma and Lucy carry out a well-oiled drill.

But as they skilfully guide 50 cattle through the yard in Hampshire, there is talk about the future.

With the government set to confirm the introduction of inheritance tax for farmers from April 2026 there is a worry the next generation is about to be set on a different path.

The family rents about 80 acres from their neighbour and another 300 acres throughout Bishop's Waltham

The Agricultural Property Relief has enabled small family farms - including land used for crops or rearing animals, as well as farm buildings, cottages and houses - to be handed down through the generations tax free.

From April assets worth less than £1m will still be entitled to this perk but any farms over the threshold will need to pay 20% inheritance tax.

The government said £2bn would be raised through the measure to fund public services.

It has gone on to say it plans to back farmers with the "largest nature‑friendly budget in history".

Steven Gregory says his farm has been in the family for generations

Steven's farm has been in his family for generations and he and his family are concerned about the future.

"My grandfather bought this in 1963," he said.

The family farm mostly beef cattle on their 100 acres.

They rent about 80 acres from their neighbour and another 300 acres throughout the Bishop's Waltham area.

Steven proudly talks about his two daughters and his son who have all gone on to achieve agricultural degrees, with ambitions of working on the farm in future.

He said they are "all very keen" and he "couldn't be happier".

"But we'll have to wait and see what happens, won't we?"

While his son Thomas is away working in New Zealand, the twin daughters are helping run the farm, while their mother does the paperwork.

"Since a little girl this is what I've wanted to do," says Lucy.

"There's young people that want to have a future in this industry but how they're going to I don't know," she added.

"We're a vulnerable industry as it is let alone from April 2026 - we're going to be even more vulnerable."

Lucy Gregory says the £1m threshold is not a lot for farmers

While the farming community argues inheritance tax is not fair, the government argues it is exactly that.

It plans farms will have to pay it, just like everybody else, but at a reduced rate.

Unless proposals change, farms worth more than £1m will have to pay from April.

The government claims it was only expected to affect about 2,000 estates each year but even with allowances the countryside community says it will hit many more.

'A lot of farms'

Emma said: "There's a lot of farms that come within this threshold of this £1m.

"So it's not just your wealthy estates which are going to be penalised."

She said if the proposals go ahead it will cost the farm hundreds of thousands of pounds.

"We'd probably have to round up about £800,000 to pay this inheritance tax," she calculates.

"So I worked out that £800,000 would be all of our cattle gone, half our tractors and also the equivalent of about a quarter of our land.

"I don't know where it leaves us. Because if we don't have the land, we don't have the livestock, don't have the machinery - how am I meant to make a living?"

While farmers across the region wait for Rachel Reeves to confirm what their futures hold, the government says it is continuing to support them.

"Our commitment to farmers and the vital role they play to feed our nation remains steadfast," according to Food Security Minister Daniel Zeichner.

Following last year's Autumn Budget, the government said it would be maintaining the £2.4bn farming budget for England in 2025-26.

A government spokesperson said: "We are backing farmers with the largest nature‑friendly budget in history with over £2.7bn a year to grow their businesses, put more British food on our plates, and restore nature.

"Our reforms to agricultural and business property relief will safeguard public services while keeping inheritance tax fair – with three quarters of estates paying nothing, and the rest paying half the usual rate, spread over 10 years interest‑free."