TFA criticises government’s stonewalling on Budget measures

The Tenant Farmers Association (TFA) has condemned Treasury ministers for their lack of action on reasonable changes to the Budget measures announced in October 2024, accusing them of political stonewalling.

Despite ongoing discussions with officials from the Treasury, HMRC, and Defra, the TFA claims the Treasury ministerial team has only met them once, with the chancellor Rachel Reeves remaining absent from the talks.

TFA chief executive George Dunn expressed frustration at the lack of progress, noting that while discussions at an official level were productive and open, ministers have shown no political willingness to make changes.

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“Everything that could be said has been said, and now we need leadership from ministers to take the next steps,” said Mr Dunn.

He added that the upcoming consultation on the impact of changes to trusts would be an ideal opportunity to address the issues raised by the farming industry.

The TFA has proposed several technical issues for the January consultation, including the appropriate level of agricultural and business property inheritance tax (IHT) relief (APR/BPR) thresholds, the transferability of these thresholds between spouses, changes to the IHT residence nil rate band, exempt transfers for older individuals, and access to a higher zero-rate band for landlords with long-term tenancies.

Mr Dunn stressed that while the government’s intention to raise revenue is understood, the proposed policies need to be adjusted to better support the farming industry.

“Good government is about understanding legitimate concerns and adjusting policies accordingly,” he said.

“The government should show strength by being willing to make reasonable adjustments, rather than forcing through policies without due consideration.”

Farmers frustrated

The TFA’s criticisms come amid ongoing frustration from farmers, who feel their voices are being ignored in key discussions on tax and inheritance policy.

The government has stated that the policies introduced in the Autumn Budget strike the right balance, but the TFA, the NFU, the Country Land and Business Association (CLA) and others insists that further adjustments are necessary to protect the interests of farmers.

Responding to the criticism, a spokesperson for the Treasury said: “We recognise the strong feelings on this policy, and we have held meetings with leading stakeholders – including the Tenant Farmers Association – to discuss its impacts.

“Our commitment to farmers remains steadfast and our Plan for Change will protect food security and grow the rural economy. Around 500 estates a year will be affected by APR and BPR changes, and we remain committed to fully implementing the reforms.”