Concerns are building that changes to inheritance tax could ‘suck the life out of British farming’, a Suffolk MP has warned, after a report on their potential impact.
The Labour Government is set to introduce reforms to agricultural property relief (APR) and business property relief (BPR) from April 6, 2026 – reducing tax exemptions for farming businesses.
However, the plans have come under fire from many in the agricultural industry, who fear they will severely impact family-run farms.
This week, South Suffolk’s Conservative MP James Cartlidge called for a complete rethink on the inheritance tax changes, following a report published by Family Business UK.
The report claimed that, in South Suffolk alone, the changes could slash the farming industry’s gross value added (GVA) by £17.73million and cut 266 full-time equivalent jobs locally.
Mr Cartlidge recently requested in Parliament for the Chancellor of the Exchequer to meet South Suffolk farmers to discuss the changes.
In response, James Murray – the Exchequer Secretary to the Treasury – said: “The Government believes its reforms get the balance right between supporting farms and businesses and fixing the public finances.
“The reforms reduce the inheritance tax advantages available to owners of agricultural and business assets, but still mean those assets will be taxed at a much lower effective rate than most other assets.
“The Government has been listening to the different views on this subject and continues to believe the approach we have set out is appropriate.”
But, Mr Cartlidge maintained he disagreed with the Government’s approach.
He said: “They clearly do not understand that their proposal will suck the life out of British farming.
“Small family farms are sustained from one generation to the next – they are not ‘just another job’.
“I have not met a single farmer in my constituency that will not be detrimentally impacted by the family farm tax. Where is the balance?
“Not only do these changes impact family farms, but they also impact other small family businesses that are the backbone of our rural economy.
“Just as the family farm tax is chilling investment in rural businesses, the changes to business property relief are putting investment on hold and further hitting recruitment and growth.
“We need a complete rethink on these anti-rural policies and, quite frankly, the Government needs to start listening to and engaging with our rural communities.”
Published by Suffolk News.
