A thriving farming sector is the beating heart of our rural communities and a vital engine for national growth. From food security to environmental stewardship, farming underpins one of the UK’s largest manufacturing sectors, supports over 4.2 million jobs and drives investment nationwide. But today, that engine is stalling. Confidence is low, investment is drying up and inheritance tax reforms risk devastating our hard-working farmers and growers across the nation.
The UK government’s Autumn Budget is a chance to reset the relationship with rural Britain. That’s why we are calling for urgent measures to unlock investment and protect the future of British food production.
First, we need a targeted approach to inheritance tax reform. Current policy changes pose a serious threat to family farms. We have repeatedly warned the government of this, and independent tax expert CenTax has shown the reforms could be better targeted to protect working farmers.
Yet the Treasury continues to rely on flawed data that misrepresents farming estates and underestimates the number of affected families. The result? A policy that risks taxing tragic deaths, penalising unplanned successions and destabilising the communities that produce our food.
We also need tax measures that unlock investment. Broadening the scope of the annual investment allowance to bring in farm buildings and infrastructure and increasing it to £5 million would support farmers to invest in productivity, efficiency and climate resilience – all vital to delivering the UK’s growth ambitions.
These measures are not just good for farming, they are good for Britain. They align with the Chancellor’s fiscal rules and growth agenda. We both want investment, but farmers cannot invest when confidence is low and money is being held back to cover future inheritance tax bills.
Despite repeated requests, I’ve yet to meet the Chancellor directly. I’ve submitted evidence to the Finance Bill Sub-Committee, held countless meetings with Treasury ministers and seen MPs from across the political spectrum speak up in Parliament to press for sensible and fair change to this flawed policy.
As Labour MP David Smith said at Treasury Questions recently, surely the Labour party’s core value of delivering for ordinary, working people means there should be support for CenTax’s proposal. This raises more for the Treasury from wealthy landowners who are not farmers whilst doing more to protect those working hard for the future of the entire country.
Farmers and growers choosing not to – or being unable to – invest in their businesses should worry us all. Without investment in farming today, we risk our food supplies for tomorrow.
Suffolk young farmer Jon has put his new grain store on hold. Gloucestershire dairy farmer Liz is disincentivised to invest in agri-tech. Norfolk potato grower Mark won’t be building new on-farm water storage. Dorset beef farmer Emily is no longer looking to buy machinery or take on more staff.
The countryside the Prime Minister and Cabinet stood in front of at the Labour Party Conference, with ‘Renew Britain’ emblazoned across sunny rural landscapes, is facing a confidence crisis.
We know that the public stands behind us. Over a quarter of a million people have signed our petition calling on the government to accept that they have got this wrong.
More than 12,000 of our supporters have written to their MPs urging them to watch the BBC Countryfile interview with Charles and Ruth Rees – a powerful, heart-wrenching account of the emotional and financial toll this policy is already having. A Welsh mixed farmer, Charles spoke about his ill-health, his father’s legacy and the uncertainty his son now faces. I cannot urge you enough: please take the time to watch this piece. It lays bare the human cost of a policy that has not been properly thought through.
The pernicious forestalling clause introduced at the last Budget means many elderly farmers who aren’t expecting to live for the next seven years have no ability to use the interim period between October 2024 and April 2026. Even if this one clause was removed, farmers like Charles could plan for their families’ futures.
During the Labour Party conference, the Defra Secretary said she wanted to renew the government’s relationship with the farming community. Even at this late stage, there is still time to do that. Ahead of the Budget, I urge the Chancellor once again to take the handbrake off Britain’s farmers. Look at the alternatives on offer. Work with us to unlock the investment British food production so desperately needs.
The Autumn Budget is a chance to show that domestic food security truly matters. MPs must speak up for farming families in their constituencies and ask the Treasury to rethink its decision.
The budget is a chance to show that domestic food security matters and rethink the family farm tax
