At a time of mounting pressures on the country’s food producers, Parliament’s Environment, Food and Rural Affairs (EFRA) Committee Chair, The Rt Hon Alistair Carmichael MP, has issued a stark warning: changes to inheritance tax could “break up or sell their farms” and have “devastating consequences” for the UK’s agricultural sector.
Speaking at the National Liberal Club at an event hosted by Whitehouse Communications, Carmichael – who grew up in a farming family and represents the rural constituency of Orkney and Shetland – argued that policy affecting farmers is too often shaped without a long-term strategy or sufficient understanding of its consequences.
“Tax-first, purpose-later” approach risks farm resilience
Carmichael criticised what he described as a “tax-first, purpose-later” approach emerging within government thinking. Farmers, he stressed, need clarity and stability – not uncertainty caused by administrative processes that fail to consider the realities of agricultural business models or the generational nature of farm ownership.
“If your inheritance tax bill is going to break up the farm, then something has gone very wrong,” he told attendees, calling for a system built on “honest discussion – not administrative guesswork.”
Food security is national security
The EFRA Chair linked the issue to a much wider challenge: the UK’s resilience in producing its own food. International shocks – from the war in Ukraine to renewed threats of tariff barriers in U.S. trade policy – continue to expose vulnerabilities in global supply chains.
Carmichael warned that domestic food production could fall dramatically without decisive intervention. Recent analysis from the All-Party Parliamentary Group on Science and Technology in Agriculture suggests output could drop by as much as 32% by 2050.
“Food security is national security,” he said, arguing that the Government’s current stance lacked the strategic vision needed to protect long-term agricultural capacity.
He further called out delays to key schemes such as the Sustainable Farming Incentive, noting that farmers are “waiting, again, for clarity that never arrives.”
A crucial moment ahead for UK trade and farming
Looking to the future, Carmichael highlighted the 2026 review of the UK–EU Trade and Cooperation Agreement (TCA) as a pivotal moment for the sector. Issues such as regulatory alignment and access to markets could significantly shape Britain’s farming economy in the years to come.
Whitehouse convening policy-defining conversations
The event brought together experts and stakeholders from across food, farming, and environmental sectors to discuss these challenges collaboratively.
Chris Whitehouse, Chair and Managing Director of Whitehouse Communications, underscored the importance of convening informed debate at a time of rapid change:
“This week’s discussion highlighted the complexity of the challenges facing farmers and the wider food system – spanning agriculture, aquaculture, and the pressing need for greater sustainability across these sectors.
Bringing stakeholders together to examine these issues is a core part of our work at Whitehouse Communications, and we are proud to support conversations that help shape constructive, future-focused policy thinking for the public good.”
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