Letter to PM comes ahead of Autumn Budget on 26 November and calls for “valid alternatives” to be considered
More than 100 businesses, retailers and trade bodies across the food and farming supply chain have written to the Prime Minister urging him to rethink planned changes to inheritance tax.
With just over a week to go until the Budget on 26 November, the open letter to Sir Keir Starmer outlines how the tax will impact thousands of working people running family farms.
The NFU, which is one of the signatories, stressed that unless changed, the tax stands to have severe unintended consequences, such as farms being forced to sell off land and core business assets to fund significant tax bills.
The letter also highlights how several solutions have been put forward by independent experts to mitigate the impact of the proposed changes on farming businesses, which will affect their ability to deliver for employment, local communities and economic growth.
NFU president Tom Bradshaw said: “Over the past 12 months, I have never known such an outpouring of anger and frustration from all sectors of the farming industry and wider supply chain to this unjust policy.
“It has been evident the Treasury does not understand farming and has remained intransigent in its position despite many calling for change. As we have repeatedly pointed out, the policy as it is, is anti-growth. It is stopping businesses and farms from investing and will leave many farming families forced to sell all or parts of their business to afford these horrendous future tax bills.”
He added: “Our message to the Prime Minister is clear. We are just a week out from the Budget; there is still time to do the right thing for British farming and rural businesses and consider the valid alternatives that have been proposed by the NFU and others. It is not too late to make changes which will raise the money the government needs while safeguarding the future of family farms.
“This is a pivotal moment. Getting this right will mean we can move forward and work together to regain some of the confidence that has drained away after months of relentless pressure. This government must back British farming for all it delivers for the nation and for the economic value it underpins in our largest manufacturing sector, British food and drink.”
In addition, a new grassroots movement called Fairer Family Farming has been launched by working family farmers across the UK to challenge government changes to inheritance tax.
Following the October 2024 Budget, changes to inheritance tax mean that farms – often valued above £1 million due to land prices – are now treated as high-value estates. Fairer Family Farming is urging the government to adopt what it deems a fairer approach that protects Britain’s farming heritage while ensuring tax integrity.
The campaign supports an independent proposal from CenTax (the Centre for Analysis of Taxation) called the Minimum Share Rule. This approach would preserve Agricultural Property Relief and Business Property Relief for genuine farmers, while closing loopholes for passive investors.
The non-partisan campaign, which is funded by farmers nationwide and is independent of industry bodies, has been initiated by long-time family farmers David Passmore, Robin Hart OBE and Phil Merson.
