CLA launches campaign to ‘save family farms’
© GNP The Country Land and Business Association (CLA) has launched a campaign aimed at defending family farms and rural businesses from recent policy changes introduced in chancellor Rachel Reeves’ Budget, which it says “has done nothing for the countryside”.
A central focus of the campaign is the proposed reform to Inheritance Tax (IHT), which, as of April 2026, will affect combined business and agricultural assets worth more than £1m.
Under the new rules, the first £1m will remain IHT-exempt, while assets beyond that threshold will be subject to a 20% effective tax rate, benefiting from a 50% relief.
See also: Budget delivers heavy cut to farming’s inheritance tax reliefs
This reform aims to generate revenue without heavily affecting smaller farms, but the CLA warns that it will still create a financial strain on many families, especially those with larger estates who face greater difficulty keeping assets in the family.
According to the CLA, this reform could pull about 70,000 UK farm businesses into paying IHT, risking the future of many multigenerational farms and businesses that are central to rural economies and communities.
In addition, the CLA warns that reductions in England’s agriculture budget – particularly for Environmental Land Management (ELM) schemes – may make it “impossible” for the UK government to meet its own environmental targets.
While ELM funding does support environmental improvements, the CLA argues that it falls short of addressing the scale of challenges farmers face.
Delinked payments
The accelerated reduction of “delinked payments” in 2025 further compounds these concerns, as these direct subsidies previously provided financial stability.
The reduced payments are creating cash flow issues that threaten the ability of farms to invest in business growth, food production and sustainability initiatives, according to the CLA.
To raise awareness, the CLA is urging farmers, landowners, and other affected parties to support the campaign by signing an online form and letter that will be sent to local MPs.
Separately, the NFU rally is organising a rally in London on 19 November, where farmers plan to address the “family farm tax” and broader economic pressures affecting the agricultural sector.