Farmers across the UK have met the news that inheritance tax relief for farms will be limited to £1million with anger.
The Chancellor was accused of “signing a death warrant” for thousands of multi-generational businesses by imposing the levy on family-run firms for the first time since 1970.
The National Farmers' Union said it had been a “disastrous budget” for family farms, that would “snatch away the next generation’s ability to carry on producing British food” and see farmers forced to sell land to pay the tax.
Many have gone onto social media to express their dismay, as well as broadcasters Jeremy Clarkson and Kirstie Allsopp, who said the decision showed the government had "zero understanding of what matters to rural voters".
The government said it was still committed to supporting farmers and "the vital role they play to feed our nation".
In Wednesday's budget, the Chancellor announced that, while there would continue to be no inheritance tax due on combined business and agricultural assets worth less than £1m, above that there would be a 50% relief, at an effective rate of 20%, from April 2026.
For years, the APR tax relief has enabled small family farms – including land used for crops or rearing animals, as well as farm buildings, cottages and houses - to be handed down through the generations.
Former Labour Chancellor Ed Balls said it could "become a growing issue" for the government.
On his Political Currency podcast he said: "It’s one of those things where you just wonder, ‘Has the Treasury really thought through all the hard cases’".
Food Security Minister Daniel Zeichner said: “Our commitment to farmers and the vital role they play to feed our nation remains steadfast."