NFU to host mass lobby as Essex farmer says the change in inheritance tax rules are "lifechanging"
Changes announced in the Autumn Budget have brought about great concerns for British farmers
Farmers and grower members are meeting with their MPs tomorrow (November 19) to bring to life the impacts of the budget policy change on their farms, British farming and food security.
At Autumn Budget on 30 October, the Chancellor announced that agricultural property relief (APR) and business property relief (BPR) will be reformed.
Agricultural property relief (APR) is a type of inheritance tax relief. It reduces the amount of tax that farmers and landowners must pay when farmland is passed to the next generation.
Business property relief (BPR) is similar, but for business assets that are part of the estate.
From 6 April 2026, the full 100% relief from inheritance tax will be restricted to the first £1 million of combined agricultural and business property.
Above this amount, landowners will pay inheritance tax at a reduced rate of 20%, rather than the standard 40%.
This tax can be paid in instalments over 10 years interest free, rather than immediately, as with other types of inheritance tax.
A farmer in Clacton told Greatest Hits Radio the change in inheritance tax rules are "lifechanging" for farmers across the country.
David Lord is the Vice Chair for the Essex National Farmers Union, he said "we're all really worried, concerned and upset.
We're feeling very betrayed about what has happened to family farms across Essex and England.
The change in inheritance tax rules is huge and it's completely changed how we approach what we're going to do with our business."
Commenting on the budget causing possible food price rises, NFU President Tom Bradshaw said: “This Budget not only threatens family farms but will also make producing food more expensive.
This means more cost for farmers who simply cannot absorb it, and it will have to be borne by someone.
Farmers are down to the bone and gristle, who is going to carry these costs?
It’s been a bad Budget for farm confidence, which is already at an all-time low and will make it harder for farmers to stay in business, ultimately increasing the cost of producing food.”
Also speaking on the financial implications of the budget for farmer, David Lord told us "Profitability in farming is at an all time low.
We're having to work a bigger area to earn the same ammount of money.
If we had an inheritence tax bill when one of my parents dies, we wouldn't have the cash.
It's as simple as that, we would have to sell."
In response to the budget announcment, the government say they are "better targeting these reliefs to make them fairer, protecting small family farms.
The latest figures show that the top 7% (the largest 117 claims) account for 40% of the total value of agricultural property relief.
This costs the taxpayer £219 million.
The top 2% of claims (37 claims) account for 22% of agricultural property relief, costing £119 million.
It is not fair for a very small number of claimants each year to claim such a significant amount of relief, when this money could better be used to fund our public services."
Rumours have been circulating on social media that the NFU plan to hold a mass protest, but a spokesperson has affirmed that "our event is a mass lobby and has not changed despite what may be being suggested on social media.
We have been coordinating with the Met Police about our event, just as we are with the venue and other parties to manage logistical requirements."
They added "We have never been against a protest, but that is not what our event is, or ever was.
It is about linking farmer and grower members to their own MPs in a series of meetings to make their views plain about the imposition of a Family Farm Tax.
It will be going ahead exactly as planned, with 1,800 registered members set to engage with their MPs."