'My parents built our farm up from nothing'

Simon Bainbridge says changes to inheritance tax will make passing the farm to his children much harder

A farmer who is joining a mass protest over Budget changes to inheritance tax says some family farms face being "put out of business".

Dozens of farmers from the North East and Cumbria are travelling to London to protest against plans announced last month.

One of those is Simon Bainbridge, from Northumberland, who added: "My parents built our farm up from nothing."

A government spokesperson said it had inherited a "£22bn fiscal hole" and with "public services crumbling" it had made a difficult decision to ensure the relief on inheritance tax was "fiscally sustainable".

Farm land is not currently subject to inheritance tax but from April 2026 any land worth more than £1m will be taxed upon the death of its owner at a rate of 20%, half the usual rate of 40%.

Farmers are also unhappy at reductions in delinked payments, which compensate them for the loss of EU grants.

Mr Bainbridge who farms 1,650 acres (668 hectares) in the village of Cambo, near Wallington said: "The land is just a means for each generation to produce food, we never see its value."

Rachel Fife, from Chathill, Northumberland, says she wants to be there to represent all farmers

Rachel Fife farms with her parents on a tenanted 400-acre (162 hectares) farm near Chathill, Northumberland, and says the threshold of £1m is "too low".

"Although as tenants, we are not directly affected, I'm going to London to stand in solidarity," she said.

"We all agree we shouldn't have millionaires buying up land but the money isn't there for farming families to pay."

Daniel Spours says changes announced in the Budget meant his farm will be £55,000 worse off next year

Conservative Mike Starkie, former Copeland Mayor, says the changes represent an "existential threat" to farmers and the rural way of life.

However, Farming Minister Daniel Zeichner has urged farmers to "look calmly" at the government's plans and insisted "the vast majority will be fine".

"The figures from the Treasury are very clear: under 500 farms a year are likely to be affected," he said.

Daniel Spours farms 2,000 acres (810 hectares) at Twizell, near Belford, Northumberland, and says other changes in the Budget are "hitting farmers hard".

"Reductions in the delinked payments mean this farm is losing £55,000 we were expecting in 2025, just like that," he said.

"It's come off the back of two very difficult harvests and lambing and now we've got this blow, I just really worry about the future."

A government spokesperson said with 40% of Agricultural Property Relief going to the 7% wealthiest claimants, this was a "fair and balanced approach".

"Around 500 claims each year will be impacted and farm-owning couples can pass on up to £3m without paying any inheritance tax," they added.

"The £2.4bn announced for the farming budget next year is the largest ever directed at sustainable food production in our country’s history, and there is also £60m for farmers affected by the weather last winter through the Farming Recovery Fund."