The Government needs to rethink the family farm tax and consult on the alternatives

The report by the cross-party Environment, Food and Rural Affairs (EFRA) Committee is further evidence that the Government has got the changes to inheritance tax (wrong.

It urges the Government to delay bringing in inheritance tax changes until April 2027 to “allow better formulation of tax policy”.

Farmers are not against the idea of closing loopholes in the tax system that have been exploited by millionaires who have little interest in working a farm. They would just rather the Government not do it in a way that would put their livelihoods at risk.

Even the EFRA Committee supports the Government’s aim of reforming agricultural property relief (APR) and business property relief (BPR) to close the loophole which allows wealthy investors to buy agricultural land to avoid inheritance tax.

However, several alternative proposals have been put forward by experts that would help deliver necessary reform without harming small family farms.

The Government should be consulting on these before publishing its Finance Bill in 2026, the Committee says.

Delaying changes would also allow the Government to convey a positive vision for farming.

This report is to be welcomed and the Government should use it to build a far more constructive relationship with rural stakeholders.

An agricultural roadmap is badly lacking and has been for some time. That is why Baroness Minette Batters’ Farm Profitability Review and the subsequent 25-Year Farming Roadmap that it will feed into cannot come fast enough.

It’s time for us to stop treating British farmers as an after-thought and take control of our food security.