British farmers are the backbone of our nation—producing food, managing the countryside, supporting rural communities and delivering on green and animal welfare commitments. Yet, instead of supporting them, this Labour administration is now putting their future at risk.
In the Autumn Budget 2024, the Government announced reforms to agricultural property relief (APR) from inheritance tax, set to take effect in 2026. At present, farms are exempt from this tax because, while they may have a high asset value, they often only generate a relatively low income. For example, a single combine harvester can cost up to a million pounds (or more) - yet Labour’s new policy means that any agricultural assets above this threshold will be taxed at 20%. This equipment is essential to farming and is usually bought with a loan, meaning that interest payments and repaying the principal must come out of the farm’s profits.
This change forces farmers into an impossible position: either take a huge financial loss on already declining incomes (which have fallen by up to 60% this year), sell off vital assets, or stop farming altogether. The consequences for Britain’s food security, food prices and the survival of family farms will be severe. The National Farmers’ Union has warned that between half and three-quarters of British farms will be affected.
Labour’s policy will break up farms generation after generation until they are no longer viable. This is a direct betrayal of farmers, who were previously assured by Labour that APR would not be changed.
Richard has long been a champion of British farmers, and since the Autumn Budget, has been actively challenging Labour’s destructive tax changes. In Parliament, as Shadow Chief Secretary to the Treasury, he has highlighted the harmful impact of this policy, including in his speech closing the Budget Debate. Beyond the Chamber, he has met regularly with farmers—both in his constituency and at national events—to hear their concerns firsthand.
Despite growing opposition, the Government has shown no sign of reversing course or mitigating the impact on small family farms. With a year until the policy takes effect, Richard will continue to challenge this Government’s damaging, ideological policy. At a time when food security and affordability are more important than ever, we should be supporting British farmers—not undermining them.
You can read more about Richard’s work on this below.
