Britain’s farming sector has suffered its sharpest contraction on record following the government’s proposed inheritance tax changes on agricultural assets, with official figures showing thousands of businesses shutting their doors.
Data from the U.K Office for National Statistics shows 6,270 agriculture, forestry and fishing businesses closed in the 12 months after the policy was announced in October 2024, the highest closure rate ever recorded.
New farm start-ups also fell sharply, with just 3,225 new ventures launched over the same period, resulting in a net loss of 3,045 businesses.
After mounting pressure from rural communities, the government reversed part of the policy this week, lifting the inheritance tax threshold on farming assets from £1 million to £2.5 million, allowing couples to pass on estates worth up to £5 million tax-free.
Ministers say the changes were intended to stop wealthy landowners exploiting exemptions, but farming groups warned from the outset the policy would devastate family farms.
Critics argue the reversal came too late for many, with closures already locked in and severe personal consequences reported in some cases. The policy shift is also expected to significantly reduce projected tax revenue, cutting expected annual receipts by hundreds of millions of pounds by the end of the decade.
Image credit: Veronica White
Britain is an open air prison.
There’s been a few shit governments but this one will be a legendary shit government by far.