A new Planning and Infrastructure Bill could force farmers to sell their land for less than its true value, sparking serious concerns within farming communities. The proposed law would grant local councils greater powers to buy land at its current price rather than its higher potential value after development.
This move, backed by Deputy Prime Minister Angela Rayner, aims to accelerate housing and infrastructure projects, but critics argue it is a dangerous overreach that undermines property rights.
Why Are Farmers Concerned?
The key issue is that councils would be able to acquire land at its existing price rather than what it would be worth if used for development.
1. Compulsory Purchase Orders (CPOs) at Lower Prices
- Under current laws, landowners can sell land under compulsory purchase orders (CPOs) at a higher ‘hope value’, reflecting its potential development worth.
- The new law would remove these hope values, significantly reducing the amount farmers receive when forced to sell.
2. A Step Towards Government Overreach?
Rob Colville, Director at the Centre for Policy Studies, warned this move could set a dangerous precedent. Speaking to GB News, he said:
“One of the huge problems we had with building HS2 was getting permission to buy every single piece of land. But the danger is if this becomes a routine part of the local planning process.”
“Councils shouldn’t just say, ‘We’re going to build here, so you must sell.’ That’s legally dodgy.”
Historically, a similar system was scrapped in the 1950s after just five years because it was unpopular and unworkable.
Government’s Justification: Faster Housing & Infrastructure Development
The Labour government, however, argues that these reforms will:
Speed up the construction of homes and transport links.
Boost investment in clean energy projects.
End land speculation that inflates costs for developers and taxpayers.
Angela Rayner described the bill as:
“The biggest building boom in a generation” and a way to “help builders get shovels in the ground quicker.”
Farmers Hit by Dual Threat: Land Sales & Inheritance Tax
1. New ‘Family Death Tax’ on Inherited Farmland
Adding to farmers’ frustrations, Labour’s inheritance tax reforms—dubbed the ‘family death tax’—would introduce a 20% tax on agricultural land worth over £1 million.
- Farmers argue this will force them to sell land rather than pass it down to future generations.
- Campaigners warn that elderly farmers are feeling pressured to take drastic actions before the law takes effect in April 2026.
2. Combined Impact on Farmers
- Lower land sale prices due to compulsory purchase orders.
- Higher inheritance tax burdens on family-owned farms.
- Uncertainty over property rights, making long-term farm investment riskier.
Together, these measures have created widespread concern in farming communities, with fears that small and family-run farms could struggle to survive.
The Planning and Infrastructure Bill aims to speed up development, but critics argue it comes at the expense of farmers and landowners. By forcing land sales at lower values and introducing a new inheritance tax on farms, the government risks alienating rural communities.
With farmers already protesting the proposed tax changes, these new land purchase rules could fuel further backlash against the Labour government’s policies.
