Rachel Reeves has warned farmers preparing to take part in a mass anti-government protest that there will be no U-turn on controversial changes to inheritance tax rules. The chancellor announced in last month’s Budget that farms worth more than £1 million which are handed down to a family member after the owner dies will be subject to 20% inheritance tax rather than zero,

Farmers have warned they will effectively lose their pensions as a result of Labour’s inheritance tax raid. Campaigners fear the “tractor tax” will decimate assets that agricultural workers had expected to draw upon when they retire, leaving the older generation out in the cold.

Farmers are protesting against restrictions on agricultural property relief – here is how the changes affect rural communities and land investors

The government wants farmers to pay the tax on assets above £1m apiece at a reduced rate of 20 per cent. The allowance comes on top of the £500,000 a typical homeowner gets if they leave their home to their children or grandchildren, so a married couple can shelter up to £3m from HMRC, a sum which will exclude most farms.

Rachel Reeves has claimed “only a very small number of agricultural properties” will be affected by her inheritance tax raid, implying that only the wealthy would be affected. But experts have told The Telegraph that poor tenant farmers who do not own land will be among the worst affected by the changes.

First unveiled in chancellor Rachel Reeves ’s Budget, the plans to impose inheritance tax on farms worth more than £1m have sparked fury among rural communities, who have contested the government’s assertion that small family farms will not be impacted by the changes.

Speaking to reporters on the way to the G20 summit in Brazil , Sir Keir said 'it is very important that we support farmers' but he is 'confident' most will not be affected by the changes.