The changes to the inheritance tax proposals announced during Budget Day do not “go anywhere near far enough’ to protect the farming community, according to the National Farmers’ Union (NFU).
Commenting on the change, NFU President, Tom Bradshaw said: “The small change to inheritance tax for farm businesses is nowhere near enough to protect many family farms and does nothing to remove the cruel impact of the policy on elderly and vulnerable farmers.”
Following the announcement of Budget 2025 yesterday (Wednesday, 26 November), the Chancellor of the Exchequer, Rachel Reeves has implemented a change to the previous inheritance tax proposals, which will allow farmers who are married, or have deceased spouses, to transfer their inheritance tax allowance to one another, in the event of one of them dying without using their allowance.
Bradshaw said: “It’s only right that agricultural allowances can be transferred between spouses.
“But it doesn’t go anywhere near far enough in protecting the working people of the countryside and does nothing to alleviate the burden it puts on the elderly and vulnerable.
Bradshaw said that the lack of significant change in regards to inheritance tax also serves as “a huge smack in the face to the Labour MPs who have been working so hard to find a way through this for their local farmers.”
He added that if Chancellor Reeves wants to “back working people” and “increase investment”, as she stated in her Budget speech, then the government must reconsider the alternative inheritance tax proposals that have been put forward by industry and tax experts, such as the minimum share rule.
Budget
The NFU also highlighted that there were also a range of other announcements within the Budget that will impact farm businesses.
Bradshaw commented: “The increase in the National Living Wage, which will have risen by 12% in two years, puts further cost pressures on agricultural and horticulture businesses and further inflationary pressures on our food system.
“At a time when the government has an ambition to get the country eating more fruit and vegetables, it will hit the horticulture sector hardest.
“The increase in the autonomous tariff quota (ATQ) for sugar cane undercuts British growers at a time when this government says promoting growth and investment at home is its priority.”
However, the news that funding for the training of apprentices under 25 years-of-age will be free for small and medium enterprises was welcomed by the NFU.
Bradshaw said he believes “it could help bring the next generation into our food and farming sector”.
