More than 100 Conservative MPs, together with Scottish and Welsh politicians and local councillors, have written to Prime Minister Andy Burnham demanding a full reversal of inheritance tax changes for farms before the government’s Budget on October 28, according to Farmers Weekly, which first reported the letter on September 4. The letter was led by shadow Defra secretary Victoria Atkins and Scottish Conservative MP Harriet Cross.
The letter targets reforms to Agricultural Property Relief (APR) and Business Property Relief (BPR) — the two mechanisms that have historically let working farms pass between generations largely free of inheritance tax. Since relief above a set threshold was reduced, the effects have rippled well beyond individual estates: family farms facing tax bills, machinery dealers losing business as farms delay capital spending, and — according to the report — input suppliers as far afield as India tracking the policy uncertainty when planning UK market entry.
According to data cited in the letter, drawn from CBI Investment research, more than 6,300 agricultural businesses in England and Wales ceased trading between July 2024 and July 2025. Separately, 55% of businesses affected by the BPR changes and 49% of those affected by the APR changes said they had paused or cancelled planned investment. More than 60% of affected businesses expect to cut investment by over a fifth, and nearly one in four family farms said they had already reduced staff numbers.
The government has set a combined relief threshold of £2.5 million and says 85% of estates claiming Agricultural Property Relief will face no additional inheritance tax under the new rules, alongside an extra £65 million announced for drought-hit English farmers this year. National Farmers’ Union (NFU) president Tom Bradshaw said the union “oppose[s] the changes to inheritance tax on farming, which treat business assets as personal wealth,” adding that “while concessions have been made, some family farms still face substantial tax bills” that are “stifling investment.” Countryside Alliance chief executive Tim Bonner said a new prime minister “provides an opportunity for government to reset its relationship with rural Britain,” and the group is planning to gather campaigners at Westminster on September 14 to press the point.
Jonathan Roberts, director of external affairs at the Country Land and Business Association (CLA), told Farmers Weekly that the political odds of a reversal have shifted markedly — from “zero six months ago” to roughly 50/50 now — citing growing unease among Labour backbenchers as the local economic impact, including machinery dealers “going under left, right and centre,” becomes clearer. He cautioned he was “not optimistic,” saying Burnham “seems to be making overtures to the farming sector, but he’s got to prove he’s got more than just a good soundbite.” With the Budget seven weeks away, farm groups, tax advisers and rural business owners are watching for a reversal, a partial concession, or a decision to hold the line.
References
Farmers Weekly – Pressure mounts on Burnham for Budget farm tax U-turn / Global Agriculture – UK Farmers Demand Inheritance Tax U-Turn Before Budget
