The next inheritance tax reform risks “dismantling farmland” and weakening the agricultural sector, the chair of Parliament’s Environment, Food and Rural Affairs (EFRA) committee has warned, amid mounting policy concerns.
Speaking at an event in London hosted by political consultancy White House Communications today, Alistair Carmichael MP said the proposed changes could force families to sell or break up their farms, undermining the resilience of a sector dominated by established family businesses.
Mr Carmichael, who represents Orkney and Shetland and grew up a farmer, criticized what he called a “tax first, purpose second” approach that ignored real-world impacts on farming.
“If the inheritance tax bill is going to destroy agriculture, something has gone very wrong,” he told attendees, adding that farmers needed a framework based on “honest debate, not government speculation.”
Mr Carmichael warned that producers were under increasing pressure due to the lack of a coherent government strategy on food security, land use and environmental considerations.
He highlighted the continuing impact of the war in Ukraine, new comments from US President Donald Trump on tariff barriers and long-standing weaknesses in Britain’s own manufacturing base.
Citing recent modeling from the All-Party Parliamentary Group on Agricultural Science and Technology, he said production could fall by up to 32% by 2050 without decisive intervention.
“Food security is national security,” he said, arguing that delays in support schemes such as sustainable agriculture incentives were leaving producers “waiting for clarity to emerge again”.
He said many decisions within Defra lacked recognition of the long-term impact on domestic food production, and said the department suffered from a “fundamental lack of strategic vision”.
Looking ahead, he pointed to the 2026 review of the UK-EU Trade and Cooperation Agreement (TCA) as a major challenge, particularly the debate around dynamic adjustment rules and the implications for future market access.
This discussion brought together all stakeholders from the food, agriculture and environmental sectors. Chris Whitehouse, Chairman of White House Communications, said the event highlighted the complexity of the pressures facing food systems and emphasized the importance of informed cross-sector dialogue.
He added: “Bringing stakeholders together to consider these issues is a core part of our work to help shape constructive, forward-looking policy thinking for the public good.”
