Industry letter urges PM to pause ‘family farm tax’ plans

A coalition of leading farming organisations has called on prime minister Sir Keir Starmer to pause and consult on Labour’s proposed inheritance tax (IHT) reforms, warning of potentially devastating consequences for family farms and tenant farmers.

In a joint letter sent to the prime minister, and signed by the NFU, NFU Cymru, NFU Scotland, Tenant Farmers Association (TFA), Country Land and Business Association (CLA), and Central Association for Agricultural Valuers (CAAV), the coalition urged the government to reconsider plans to impose a 20% inheritance tax on agricultural assets from April 2026.

NFU president Tom Bradshaw said the letter, sent following his meeting with Sir Keir in 10 Downing St on 25 November, stressed the need for collaboration and consultation.

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“The whole industry has come together to follow up with the prime minister to offer to help close the [IHT] loophole that they’ve identified by asking for a pause and consultation,” Mr Bradshaw told Farmers Weekly.

“We need to move the human impact out of this, while working towards a solution that addresses the government’s concerns without devastating family farm businesses.”

The letter itself remains unpublished, but TFA chief executive George Dunn confirmed its central demands in an interview.

“We urged the government to pause and undertake a full consultation on the consequences of the proposed changes,” Dunn said, emphasising the potential harm to tenant farmers.

“For the tenanted sector, we advocated that landlords letting properties for 10 years or more, or under secure Agriculture Holdings Act tenancies, should retain 100% inheritance tax relief.

“This measure is critical to preserving resilience and investment within the sector.”

Farm leaders have raised alarm about the lack of consultation, warning that the reforms could destabilise family farms and disproportionately impact tenant farmers.

Despite the urgency, the government has yet to respond.

“We’ve had no concessions or offers,” Mr Dunn said. “While discussions are ongoing, the lack of concrete action is concerning.”

NFU poster campaign

© NFU

To amplify their message, the NFU is launching a “Stop the Family Farm Tax” poster and car sticker campaign aimed at raising awareness in rural constituencies.

Mr Bradshaw is also encouraging NFU members to lobby Labour’s 130 rural and semi-rural MPs through letters and meetings to highlight the policy’s potentially devastating impact on family farming businesses.

While farmer rallies scheduled for 11 and 16 December in London and Cardiff are not being officially backed by the NFU, Mr Bradshaw expressed hope they would be “well attended by farmers and growers” and allow them to “make their voices heard”.

He also suggested that if the government does not reconsider its stance, a larger show of unity might be needed in the spring, potentially involving another major event in London or simultaneous rallies across the UK.