Rachel Reeves has stamped on the hopes of farming families that they could be spared a major increase in inheritance tax which it is feared will push farms out of business. Farming minister Dame Angela Eagle hit the airwaves to say the Treasury is not “going to move” despite tens of thousands of people from rural communities taking to the streets to warn of the devastation the tax raid could cause.

Dame Angela said she was “quashing” rumours that the planned tax hike – due to come into force in April – would be tweaked to exempt smaller firms.

There were reports the threshold for paying the 20% tax on agricultural estates could be lifted from £1million to £5million – and £10million for a married couple. This followed warnings farming families would have to sell land, livestock and equipment to pay the inheritance tax bills – moves which could render their farms unviable.

But when the farming minister was asked by the BBC if she had discussed the issue with the Treasury, Dame Angela said: “We have been in discussions. The Treasury have made their announcements and they aren’t going to move.”

Farmers are planning a nationwide “day of unity” on Monday, November 24, to protest the tax hike.

Shadow Environment Secretary Victoria Atkins said: “We are in a food and farming emergency with food prices rising and record farm closures in the midst of farmers’ fears about Labour’s family farm tax. It is, therefore, striking that the only time the Labour Government stands firm is when its actions lead to the destruction of our countryside and agricultural businesses.

“At a time when food security has never been more critical, it is a disgrace that the Minister for Food Security and Rural Affairs refuses to reverse the damaging family farm tax.”

Reform UK deputy leader Richard Tice said: “This Labour Government doesn’t care about British farmers, British food or our country’s food security. It’s no surprise that they are pressing on with the family farms tax, which has brought the farming sector to its knees.

“Inheritance tax as a whole is little more than a death tax on grieving families. Reform UK would put an end to this form of double taxation on farmers and families altogether.”

John O’Connell, chief executive of the TaxPayers’ Alliance said: “The fact that Labour ministers are still refusing to back down on the family farms tax shows you how ignorant and out of touch they are.

“Taxing family farms is going to be a hammer blow to British agriculture and to rural communities up and down the country, but they clearly don’t care. If the government listened to the farming community they’d recognise that they still have time to reverse this policy, and avoid the devastation that it will bring.”

In her Farming Today interview, Ms Eagle ruled out changes to the tax plans, saying: “Despite some of the speculation in the Press, there is no likelihood that that will happen. The announcement has been made and the situation will be as it was announced.

“But remember that three-quarters of estates will continue to pay no inheritance tax at all while the remaining quarter will pay half of the inheritance tax that most people pay. I’m afraid there aren’t going to be any changes with respect to the announcements that were made previously about inheritance tax in this instance.”

Tom Bradshaw, president of the National Farmers’ Union, said: “The family farm tax is not a fair and balanced approach to reform. It does little to target those who seek to shelter wealth from inheritance tax, instead putting the heaviest burden on working farming families.

“Many will not be able to afford the tax at all, while others will have to halt investing in their businesses to pay it.”

Arguing there are better ways for the Treasury to raise revenue without endangering family farms, he said: “The Government still has time to adjust the policy in the upcoming Budget so it is more targeted and prevent working families, and the growth of the farming sector, from becoming collateral damage.”