Do Those Who Govern Us Get EVERYTHING Wrong They Touch?

 Farms close at record rate after inheritance tax raid.

More than 6,000 agriculture, forestry and fishing businesses shut over the past year since Labour’s October budget.

Harry Goodwin

Thursday July 24 2025, 11.40pm BST, The Times

A record number of farms have been forced to shut this year after the government cut inheritance tax relief for farming families.

A total of 6,365 agriculture, forestry and fishing businesses closed over the past year, according to the Office for National Statistics. The figure is the highest since quarterly data was first published in 2017.

Most of the closures happened during the first six months of this year, after Rachel Reeves, the chancellor, cut the amount of inheritance tax relief available to family farms in her October budget.

Only 3,190 businesses have been set up in the sector in the same period, with a net loss of 3,175 firms.

Victoria Atkins, the shadow environment secretary, told The Daily Telegraph: “Labour’s disastrous tax policies are destroying generational businesses. These statistics prove that Labour do not understand our rural communities and our rural communities cannot afford Labour.”

Atkins said that the government’s hike in employer national insurance contributions had also hit farming businesses.

Farmers are also struggling with a poor harvest after this summer’s drought and floods last year and the rising cost of fertiliser and export barriers since Brexit pose additional problems for agricultural businesse

Victoria Atkins, the shadow environment secretary, at a farmers’ protest in

Family farms do not currently incur inheritance tax. From April next year the tax will be charged at a rate of 20 per cent, above a threshold of £1 million. The usual rate of inheritance tax is 40 per cent.

• Treasury won’t give data on farmers’ alternative to inheritance tax

Some farmers above the planned threshold say that their businesses are cash-poor, meaning that they will have to sell land to foot the tax bill.

Tom Bradshaw, president of the National Farmers’ Union, said that farmers’ confidence in their sector’s future was at “rock bottom”. He said: “It creates this continuing sense that the industry isn’t valued.”

The Department for Environment, Food and Rural Affairs said: “Our commitment to farming and food security is steadfast and farming profits in the UK increased by £1.6 billion last year.

“We are slashing costs and red tape for food producers to export to the UK. We’re ensuring farmers get a bigger share of food contracts across our schools, hospitals and prisons.” Times.