Nigel Farage speaks at a Reform press conference in central London this afternoon (Image: X )
Nigel Farage’s Reform UK has pledged to impose a new “windfall tax” on renewable energy.
The insurgent party also promised to reverse Labour’s tax raid on farmers, apart from those who build solar farms on their land.
Reform leader Mr Farage and deputy Richard Tice made the announcements at a press conference this afternoon.
Mr Tice claimed that green policies were to blame for the deindustrialisation of Britain.
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He said Reform would propose “probably a generation tax” and a “special corporation tax rate” in order to “recover” the money paid in subsidies to renewable generators.
The Boston and Skegness MP said: “This is the best way that we can help get the bills down and lower the cost of living.
“The British people need to know there is a direct link between the cost of all these subsidies to the vested interests in the renewables industry and your bills, your cost of living.
“So we will impose a windfall tax, whether it’s wind, whether it’s solar, whether it’s Drax power station, which is another massive con and rip off.”
He said the move would bring down energy bills by up to £350 per household a year.
Mr Tice also vowed that Reform would “abolish this appalling family farms tax”.
But he added: “But I have to say to those farmers who want to sell out to the renewable industry for solar farms, you can’t have it both ways, folks.
“You’ve got to make a decision, either you are part of food production, part of food security for our nation, or you’re part of the renewables industry. So you can’t double dip.
“If you sell out to the renewables industry, then you would not benefit from that inheritance tax relief. That’s only fair.”
Mr Tice said Reform was putting energy companies and the National Grid “on notice” to place power cables underground instead of erecting pylons.
But director of the Conservative Environment Network Sam Hall warned that the “statist plan to put new taxes and red tape on British energy would cause household bills to skyrocket and pull the rug on energy firms”.
He added: “We should be unleashing homegrown energy that can make us more energy secure and self-reliant, not blocking new supply and decimating investor confidence.
“Energy bills are too high and must come down. But the problem is not net zero, it is our reliance on expensive gas imports and excessive government intervention in energy markets.
“To lower bills, we should let the market lead, back innovation, and remove barriers to private sector investment. Reform’s plan is not credible, takes us in the wrong direction, and would leave our children and grandchildren poorer and less secure.”
Nigel Farage’s Reform Makes Huge Promise to Farmers and Unveils New ‘Windfall Tax’
Nigel Farage’s Reform UK has set out an ambitious message for Britain’s farming communities, promising to reverse controversial inheritance tax changes affecting agricultural assets while proposing a new windfall tax on renewable energy companies. The proposals bring together two major themes in the party’s economic agenda: protecting traditional British farming and challenging the cost of government support for the renewable energy sector.
The announcements, originally made in February 2025, placed Reform at the centre of a political debate involving farmers, energy companies, environmental policy and the future of Britain’s food production. They also highlighted a significant question for voters: how far should the government intervene in markets to protect rural communities and reduce household bills?
A Promise to Protect Family Farms
One of Reform UK’s central promises has been to reverse Labour’s changes to agricultural inheritance tax relief. The party argues that family farms should not be placed under financial pressure when land and agricultural assets pass from one generation to the next.
For many farming families, land represents both a business asset and the foundation of a family’s livelihood. Unlike some other forms of wealth, agricultural property does not necessarily generate enough readily available cash to cover a substantial tax bill. A farm may be valuable on paper while operating on relatively narrow annual margins.
Reform argues that requiring families to find large sums to settle inheritance tax liabilities could force some owners to sell land, reduce the size of their businesses or reconsider whether their children can continue the family enterprise.
The party has therefore promised to reverse the relevant inheritance tax changes and restore more generous agricultural property relief. Nigel Farage has presented the commitment as part of a wider effort to support farmers and preserve domestic food production.
However, the precise financial consequences would depend on the legislation, eligibility rules, asset valuations and the circumstances of individual farms. The proposal should be understood as a political commitment rather than a guarantee that every farming business would receive identical treatment.
Why Inheritance Tax Has Become a Rural Flashpoint
The dispute reflects a broader disagreement about how agricultural wealth should be treated by the tax system.
Supporters of the government’s reforms argue that inheritance tax relief should be targeted and that valuable assets should not automatically receive unlimited preferential treatment. They also point to the need to raise public revenue and ensure that tax rules are fair across different forms of wealth.
Critics, including Reform UK, counter that farms are not simply investment portfolios. Agricultural businesses require land, equipment, livestock and long-term investment. Their owners may have considerable assets but limited cash available without selling part of the business.
That distinction is particularly important for farms that have remained within the same family for decades. A large tax liability could create difficult choices at a time when owners are already dealing with fluctuating commodity prices, rising input costs, unpredictable weather and pressure from retailers.
Reform’s promise is intended to reassure those concerned about succession planning. Yet the wider debate will not be settled by political assurances alone. Farmers will want clear rules, realistic financial assessments and evidence that any changes would protect viable businesses without creating unintended consequences elsewhere in the tax system.
The New Windfall Tax on Renewable Energy
Alongside its agricultural pledge, Reform UK proposed a new windfall tax targeting renewable energy companies, including businesses operating in wind and solar power. The party has argued that subsidies and other forms of government support for renewable electricity have contributed to the financial pressures facing households and businesses.
Richard Tice, Reform’s deputy leader, has previously argued that energy companies benefiting from public support should face additional taxation. The party has suggested that revenue from such a measure could help reduce energy bills.
The proposal reflects Reform’s broader opposition to aspects of the UK’s net-zero strategy. The party has criticised what it regards as excessive reliance on subsidies and government intervention, arguing that energy policy should place greater emphasis on affordability, reliable supply and domestic economic competitiveness.
A windfall tax, in general terms, imposes an additional tax on profits considered unusually high, often because of exceptional market conditions or changes in prices. Governments have used such taxes in different circumstances, including periods when energy companies have benefited from extraordinary increases in wholesale prices.
Reform’s proposed approach would be directed at renewable energy businesses. The precise design of any new tax would be crucial: its rate, duration, treatment of existing contracts and definition of taxable profits would determine its practical effect.
The party has also argued that its wider energy proposals could reduce bills. Those savings remain a political claim rather than a guaranteed outcome. The impact would depend on how the tax was structured, whether companies passed some of the additional costs to consumers, and how investors responded.
Could the Tax Really Reduce Household Bills?
Energy affordability remains a major concern for households, small businesses and energy-intensive industries. Electricity costs affect everything from domestic heating to food processing, transport and manufacturing. A policy that genuinely reduced bills would therefore have consequences well beyond the energy sector.
Reform has argued that renewable energy subsidies place an unfair burden on consumers and that taxing companies receiving substantial benefits could help ease that pressure. Its representatives have suggested savings of up to £350 per household annually in connection with the proposed measures.
That figure should be treated as a party claim, not an independently established guarantee. The relationship between taxation and electricity prices is complicated, and the proceeds of a tax do not automatically translate into lower bills.
A government would need to explain how the revenue would be used, whether savings would be passed directly to customers, and how the proposal would interact with existing energy contracts and market arrangements.
There is also a question about investment. Energy projects often require substantial upfront funding and operate over long periods. If investors believe that the rules governing their returns could change unexpectedly, some may demand higher returns to compensate for the additional risk. Others could delay or cancel projects.
That could affect future electricity supply and the pace at which new generating capacity is built. The final outcome would depend on the tax’s design and the wider energy market, rather than simply on the announcement of a new levy.
A Clash Over Britain’s Energy Future
Reform’s position has drawn criticism from supporters of renewable energy and environmental organisations. Critics argue that imposing new taxes on renewable generators while reducing support for clean energy could undermine investment and make it harder to expand domestic electricity production.
They also dispute the suggestion that renewable energy policy alone explains high energy bills. Electricity prices are influenced by multiple factors, including the cost of gas, the structure of the wholesale market, network investment, taxes and the availability of different generating technologies.
Supporters of Reform’s approach offer a different argument. They contend that consumers should not be required to finance expensive policy choices indefinitely and that energy companies should not be shielded from additional taxation simply because their businesses operate in a sector associated with environmental objectives.
This disagreement goes beyond a single tax proposal. It concerns the balance between affordability, energy security, private investment and the transition to lower-carbon electricity.
The practical challenge for any government would be to reduce costs without discouraging the investment needed to maintain a reliable supply. A windfall tax might raise revenue, but its effectiveness would depend on whether it addressed the causes of high bills and whether its costs produced unintended consequences.
What the Proposals Mean for Farmers
For rural communities, Reform’s agricultural promise is closely connected to the party’s wider argument about economic independence and food security.
The party’s agricultural programme has also included a proposed increase in the farming budget to £3 billion, a shift away from certain climate-related farming subsidies towards direct payments, and measures intended to reduce paperwork for agricultural businesses. It has advocated changes designed to help farmers sell produce directly to consumers and strengthen the position of British food producers.
Reform says these policies would make it easier for farmers to remain productive, invest in their businesses and pass their land to younger generations.
Yet farmers face a range of pressures that inheritance tax changes alone cannot resolve. These include volatile fertiliser and fuel prices, labour shortages, the bargaining power of large retailers, access to finance, changing weather patterns and uncertainty over future agricultural support.
Any government seeking to strengthen British farming would need to consider these challenges together. Tax relief may help with succession planning, but it does not automatically improve farm-gate prices or guarantee that domestic producers can compete with imports.
Farmers will therefore need to assess not only the headline promises but also the details of funding, implementation and the long-term stability of agricultural policy.
The Questions Reform Would Need to Answer
The proposals provide a clear political message, but turning them into policy would require detailed decisions.
On inheritance tax, Reform would need to specify exactly which reliefs would be restored, who would qualify and how the changes would be financed. It would also need to explain how the policy would interact with other tax priorities and public spending commitments.
On renewable energy, the party would need to define which companies and profits would be subject to the windfall tax. It would have to address existing contracts, possible legal challenges, the treatment of different technologies and the risk that additional costs might be passed to consumers.
The party would also need to set out independently assessable calculations showing how much revenue the tax could raise and how that money would translate into lower household bills.
These questions matter because political promises are judged not only by their intentions but also by their consequences. A policy that helps one group could impose costs on another, while an apparent short-term saving might create longer-term difficulties if it discourages investment or reduces supply.
A Wider Test of Reform’s Economic Approach
The farming pledge and the renewable energy tax illustrate Reform UK’s attempt to connect rural concerns with a broader criticism of Britain’s economic and energy policies.
For farmers worried about inheritance tax, the promise offers a possible route to greater certainty over family succession. For households frustrated by energy bills, the proposed levy is presented as a way to challenge companies that Reform believes have benefited from government support.
But the two proposals would operate in very different economic environments. Agricultural inheritance tax relief concerns the transfer of assets between generations, while a windfall tax would affect energy businesses, their investment decisions and potentially the wider electricity market.
Both would require legislation, detailed costings and a clear explanation of how the benefits would be delivered.
Ultimately, Reform’s promises will be assessed against practical questions: whether family farms receive meaningful protection, whether energy bills actually fall, how public finances are affected and whether the policies support long-term economic stability.
The announcements have put farming and energy taxation firmly within the party’s political agenda. Whether they can deliver the outcomes Reform promises will depend on the details of implementation and evidence of their real-world effects.