Farmers protesting over changes to inheritance tax have been told they are ‘wrong’ about the policy as 13,000 of them took to the streets of London.

The Metropolitan Police estimated that number attended the protest in central London, which called on the Government to scrap the changes announced in the Chancellor’s budget last month.

No arrests have been made so far, but the Met did confirm they will report tractor drivers who ploughed through barriers at the protest.

A red tractor drove over a traffic cone and through a no entry sign on Whitehall at around midday, with a blue tractor entering the protest area behind it.

Famous faces dotted the crowd including composer Andrew Lloyd Webber, TV personality Jeremy Clarkson – along with stars from the reality TV show Clarkson’s Farm – and leading politicians Kemi Badenoch, Sir Ed Davey and Nigel Farage.

But Environment Secretary Steve Reed has rejected claims the government has underestimated how many will be affected by plans to limit 100% property relief to the first £1 million of agricultural assets.

(Image: James Manning)

The remarks are likely to anger some farmers who have been taking part in large-scale demonstrations across Westminster to urge the Government to reverse the policy announced in the October Budget.

Ministers say the vast majority of farms will not be hit by the changes, but many in the sector have said they will be forced to sell off land to meet the costs.

Appearing before MPs on the Environment, Food and Rural Affairs (Efra) committee on Tuesday as thousands of farmers marched on Westminster demanding a U-turn, Mr Reed was pressed on the backlash.

Chairman Alistair Carmichael said there were “a lot more than 500 (farmers) here saying they’re going to be affected”, and asked whether they were wrong.

Mr Reed replied: “Well, assuming these projections from HMRC, validated by the OBR and IFS, are correct then many of them, probably happily, are wrong because there are things that they can do to plan their tax affairs as most businesses or asset owners would do to limit their liability.

“The numbers I’ve heard bandied around are enormous and very, very frightening if people were to believe them.”

He acknowledged the changes would be “unsettling” and said he was “listening” to concerns, but that most farmers would not face a hike.

He continued: “The Government’s been very clear: about 500 farms will be affected and the vast majority of farms will pay nothing more under the new scheme,” he said.

“That figure has been validated now by the independent Office for Budget Responsibility and by the independent financial think tank the IFS.

“There are all sorts of other figures flying around that I don’t recognise."

Under the plans, full inheritance tax relief will be restricted to the first £1 million of combined agricultural and business property relief, above which landowners will pay a rate of 20%, compared with 40% on other estates.

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The measure comes into effect in April 2026 and can be paid in instalments over 10 years interest free, the Government has said

It comes on top of other exemptions, so that two people with farmland could pass on up to £3 million without anything being paid, depending on their circumstances.

The Tories have said the Government “broke its promise” before the election not to interfere with agricultural property relief.

Industry leaders have accused Chancellor Rachel Reeves of refusing to engage over the issue.

Speaking to journalists in Westminster, National Farming Union president Tom Bradshaw said: “The longer they leave this hanging, the more I start to think it’s vindictive, rather than miscalculated.”

But ministers have argued the revenue is needed to help fix public services and plug a £22 billion fiscal “black hole” left behind by their Tory predecessors which they say only became apparent after they entered government.

The IFS, which has been calling for reforms to inheritance tax, backed the Government’s measures.

David Sturrock, senior research economist at the think tank, said: “If we have an inheritance tax it should apply equally across all types of assets.

“Exemptions and reliefs cause unfairness and distort ownership and investment in undesirable ways.

“Inheritance tax relief for agricultural and business assets provides a tax incentive for wealth to be held in these forms and for land to be used for agricultural purposes by those who want to pass on wealth to their heirs.”

Mr Sturrock said that if the Government wanted to boost agricultural production it could do so by explicitly targeting support towards certain activities, which would be “fairer”.

“As with most tax changes, some will lose out,” he said.

“The question of whether farmers or farming activities should be supported in some other way instead does not alter the case against these unfair and distortionary reliefs.”

Crowds started to disperse at around 1pm after they were asked by organisers to give the Met Police a round of applause and to ensure no litter was left behind.

A small group of people were seen pushing wheelbarrows of fresh produce, with nearby farmers explaining the vegetables were being taken to a food bank.