The recent changes to inheritance tax rules for farmers, announced in Labour’s Budget, will place significant financial strain on family farms in Bridgwater and across Somerset. Set to begin on April 6, 2026, the policy introduces a 20% tax on agricultural assets over £1 million, a shift that could force many farmers to sell parts of their land or operations.
Ashley Fox MP met with representatives from the National Farmers’ Union (NFU) to discuss the potential impacts on local farmers. Serious concern was raised about the viability of passing farms down through generations under the new inheritance tax changes. One fourth-generation farmer shared that he would likely need to sell significant portions of his land just to meet the tax burden, a decision that would prevent him from handing down his farm in its entirety to his son. "Farming is about growing food and feeding people," he noted, "not about profit, but a way of life."
Ashley Fox, MP for Bridgwater, raised serious concerns about the impact of this policy on the local farming community.
"Labour’s attack on family farms in the Budget is disastrous for farming, rural communities and our economy. These changes threaten to undermine the UK’s food security by destabilising the agricultural sector, increasing our reliance on foreign nations for food supplies and weakening our self-sufficiency." said Ashley. "This could, and in many cases will, make the difference between a family farm surviving across generations or being broken up and sold to cover a tax bill. Farms are typically cash-poor, relying on land and buildings to produce food for the nation and maintain their operations. Profits are minimal and are often reinvested back into the farm for maintenance, restocking, or upgrading infrastructure."
"Thousands of farms across Somerset, and the UK, will be impacted by this cruel tax regime, the effects of which will be felt for decades to come. These changes will threaten to undermine the UK’s food security, destabilising the agricultural sector, increasing our reliance on other nations for food supplies and weakening our self-sufficiency."
Ashley also questioned the Treasury’s assertion that the policy affects only the wealthiest estates. "The average farm size and land values mean this tax will impact many small to medium-sized family farms, not just large estates. This measure shows a lack of understanding of farming and its economic realities," he added.
Ashley Fox MP is urging the government to reconsider this policy, which he believes undermines the viability of family farming across Somerset and the UK.
"Our farmers deserve policies that support, not threaten, their future. I will continue to press in Parliament for the Government to develop a more sustainable approach that protects family farming in Somerset."
