Thousands of British farmers have protested against inheritance tax on multimillion-dollar farms

Thousands of British farmers have taken to the streets to demand the abolition of inheritance tax, saying it destroys family farms and threatens food production.

Protesters carried signs with slogans such as "No farmers, no food, no future" and "British Prime Minister Starmer is a scourge to farmers" on Tuesday, with some driving tractors through central London, Reuters reported.

According to Finance Minister Reeves' Budget last month, from 2026 people who inherit farms worth more than £1 million will have to pay 20% inheritance tax. Previously, farms were passed down from generation to generation without tax.

The measure has been dubbed a "tractor tax" by critics and sparked outrage among farmers.

Farmers say they already suffer from unfair competition because cheaper imported produce does not have to meet the same environmental and welfare standards, while their incomes are also being affected by competitive pressure from supermarkets and climate change.

They point out that while the land and machinery are of high value, the farm itself makes very little profit, meaning their children have to sell the land to pay the taxes.

Trotter, a farmer from Somerset in southwest England, said he was angry about the impact of the tax changes on his family's future. "It's a total attack on the culture of rural life."

However, the government says the changes will only target the wealthier estates and most valuable farms, and will fund public services that farming communities rely on.

It was the first budget by the Labour government since it won the general election in July and it was met with strong opposition. Businesses have also warned that Reeves' other tax increases will fuel inflation.