Baillie hits out at SNP as local farmers join inheritance tax protests

By Bill Heaney

Dunbartonshire and Argyll farmers joined widely publicised demonstrations against changes to inheritance tax rules this week.

They oppose UK government plans to tax inherited agricultural assets worth more than £1 million at 20% – half the usual rate – from April 2026.

Prime Minister Keir Starmer has said he understands the concerns, but has insisted the “vast majority” of farms will be unaffected.

Farmers travelled to London to take part in a rally near the Westminster Parliament to highlight their concerns.

Farms that were previously exempt from inheritance tax will now have to pay 20%.

There have been different claims about how many farms will be affected.

These vary from as many as 70,000 to as few as 500.

The UK Labour government has said that people inheriting farmland would have 10 years to pay the inheritance tax bill interest-free, unlike other inheritance tax, which needs to be paid immediately.

Farmer Stewart Wood said: “I came to London to support our industry. I’m a fourth generation farmer myself and over the years everything’s been handed down and it sort of makes life a lot simpler.

“The fifth generation is a partnership in the business so it’s very important that we know what our future’s going to be.”

Stewart Wood said his business would struggle if he had to do an inheritance tax transfer

He added that his oldest son was also in the business which would be passed on to him and he hopes his grandson will be interested in taking it on too.

“That would take it to six generations which is quite unique I think,” he said.

“I’ve actually done the transfer about a year ago. We took the decision as I was getting older. I was very fortunate my dad left it to me at quite a young age so I felt we’d do the same thing.”

Mr Wood said much of his money had been spent on buildings and equipment over the years and said his business would struggle if he had to do an inheritance tax transfer.

“The one farm would probably have to be sold off to pay for it which then makes you totally invaluable,” he said.

“To be valuable now, you have to get bigger actually not smaller, so for family farms, it’s very important to us that we stand up and fight for what’s best for our industry.”

Children's feet in wellies of various colours, on a frosty pavement

There was also a welly wearing protest by the children of farmers.

Jackie Baillie MSP for Dumbarton constituency which includes Helensburgh, Cardross and Lomond, said:  “Our island and rural communities have been hard hit by the SNP Scottish Government’s mismanagement of public services – you only need to look at the ferry fiasco to understand how incompetent the SNP has been.

“The SNP repeatedly raided agricultural budgets, taking out £61 million over the last two years to fill their financial black holes and have failed to repay the farming community.

“The Chancellor delivered the highest ever devolved settlement of £47.7 billion for 2025/26, more money for Scotland after years of Tory mismanagement.

“The Scottish Government can use this record settlement to deliver fair funding to Scotland’s farmers and crofters to support food security, sustainable farming and environmental restoration and to invest in Scotland’s public services and infrastructure.

“We know the current tax emptions for farming have been used by wealthy people, who are not farmers, to avoid inheritance tax. Currently, the largest estates pay a lower effective inheritance tax rate than smaller estates. This is not fair or sustainable.

Scottish Government Finance Secretary Shona Robison has warned that the National Insurance hike, coupled with the increase in National Living Wage announced at the Budget, will add significantly to the financial pressures farmers will face.

Scottish Liberal Democrat Wendy Chamberlain MP, left, said: “I will fight this disastrous tax hike every step of the way, and make sure that the voices of Scotland are represented in Westminster. The impact of this tax hike goes beyond the farming communities — families and pensioners across Scotland will also be hit if food prices go up.

“The budget has proven that the new government does not understand rural communities or farmers and how critical they are to food security, to the protection of our natural environment and to the British economy.

“We are urging the government to axe the tax now, if not the impact felt by communities across Scotland who are already struggling to make ends meet will be catastrophic.”

Top picture is of Auchengaich Farm in Glen Fruin high above Helensburgh. Picture by Bill Heaney

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