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The treasure has refused to entertain a compromise presented by agricultural groups to mitigate the impact of heritage tax reforms on the agricultural sector, despite the increasing pressure to reconsider politics.
Agricultural executives proposed a return mechanism that they said they would generate similar income by protecting family farms from taxes during a long -awaited meeting between treasury and industry officials.
Groups – National Farmers’ Union, Tenant Farmers’ Association and Land and Business Association – have criticized Chancellor Rachel Reeves’ decision to end decades of exclusion from death tasks for farmers in its October budget.
But ministers told groups that the government would not return to its proposed reforms, which the industry warns that it could threaten the UK food security.
“The reaction from our members will be one of the rage, a real anger, a despair we have seen in recent months,” said NFU President Tom Bradshaw.
“We went to the treasure with a solution. We know the fiscal hole the country faces, “he added.” But at the moment, the door is closed by the treasure. ”
Return – first suggested by tax lawyer Dan Neidle of tax policy associates last year – would see agricultural assets withdraw only tax if they were sold within a period of time agreed after inheritance.
This would better aim for wealthy individuals who utilize tax relief, argued groups.
“We have presented a convincing alternative, but the government is deaf to the possibility,” said President Cla Victoria Vyvyan, adding that she believed the government’s decision to dig its heels showed that politics was “ideological”.
“I really didn’t want to think that this is directed by ideology, but the money is not big enough to justify the attack on our industry,” she said.
An informed official of Reeves’ thought said the Chancellor was determined to move forward with the plan. “We have never suggested that there will be softening,” the official said. “We strongly believe that this is a fair and balanced agreement.” The treasure did not immediately respond to a comment request.
Reforms mean that from April 2026 agricultural landowners will undergo a 20 percent tax on land over a threshold between £ 1.3 million and £ 3m, depending on whether they are married and if they own a home.
The decision has led to a significant political response and energy the agricultural community.
Last week, Prime Minister Sir Keir Starmer was forced to cut a visit to a housing development to Milton Keynes after a group of farmers in tractors disrupted the look. During a London tractor protest last week, Starmer insisted that “agriculture is at the top of the agenda”.
Opposition parties have clashed with reforms, and overwhelmingly united with agricultural groups on the issue.
Following the meeting, Environment Secretary Shadow Victoria Atkins said the work “clearly did not care about rural communities”.
She added: “Contrary to the words that come out of Keir Starmer’s mouth, this is even more confirmation that farmers are at the bottom of the job advantage list.”
Spokesman for the Liberal Democratic Environment and Rural Affairs Tim Farron said the government was “throwing farmers to wolves”.
He warned that “the family farm tax may be the last nail in the casket for many communities trying to afford.”
Some of the backstage of the government have also called for reforms to be mitigated.
During a petition debate on changes last Monday, labor lawmakers proposed changes such as raising the farm value threshold, presenting a “active farmers’ test” to decide whether the land is being used for agriculture, or the creation of a claw return system.
