North and north-east MPs join attack on UK minister over ‘family farm tax’

Pressure is mounting on the UK Government to reverse plans to partly remove an important tax relief for farmers.

In the House of Commons today, Orkney and Shetland Liberal Democrat MP Alistair Carmichael asked rural affairs minister Daniel Zeichner, speaking on behalf of rural affairs cabinet secretary Steve Reed, to make a statement on the likely implications.

What’s changing?

Currently, relief of up to 100% of inheritance tax rate is available for qualifying agricultural assets.

But from April 6 2026, for every pound over and above £1 million, farming estates will be hit with an inheritance tax rate of 20%.

It is half the standard charge but will mean, for example, that a farm worth £5m – not uncommon these days – will incur tax of at least £800,000 if it is passed from one generation to the next.

Angry backlash to ‘family farm tax’

This and other changes announced in last week’s Budget, have sparked an angry backlash.

Mr Zeichner tried to reassure MPs “the government’s commitment to farmers and rural communities is absolutely unwavering”.

He said Prime Minister Sir Keir Starmer and his team were forced to make “tough” decisions to fill a “£22 billion black hole” created by the previous, Tory administration.

Minister calls it a ‘fair, balanced approach’

“We absolutely understand farmers’ anxieties,” Mr Zeichner said, adding the controversial changes were part of a “fair, balanced approach to protect farming families, while also fixing the public services these farming families rely on.”

Gordon and Buchan MP Harriet Cross asked highlighted north-east land values during the debate.

Many farms will be affected by the changes, she said, before asking the minister whether farmers should sell land, buildings or machinery to cover inheritance tax bills.

Aberdeenshire North and Moray East SNP MP Seamus Logan said there was “deep deep anger” about the changes, which would be “devastating” for farmers and crofters.

The Treasury says the changes to agricultural property relief (APR) will affect just over one-quarter of UK farms.

In today’s debate, there was cross-party support for the government to explain how it came up with this figure.

Reform UK MP calls for an apology

And farmer and Great Yarmouth MP Rupert Lowe, of Reform UK, called on the minister to apologise for “this cruel assault on British farming families”.

Speaking later, Mr Carmichael said: “Building up strong and resilient farming communities should be a goal for anyone who cares about our environment, our food security and our economy.

“At that heart of that goal surely has to be a full-throated defence of family farming up and down the country.

There is still time for the government to take stock, listen to farming voices and build consensus around future tax rules.” Alistair Carmichael MP

“I was disappointed by the minister’s responses today. They reinforce the impression many in our communities have that the government still does not understand why this Budget has provoked so much concern.”

He added: “The failures of the previous Conservative government cannot justify further harm to farming communities.

“There is still time for the government to take stock, listen to farming voices and build consensus around future tax rules. They should start by pressing pause – and giving us some transparency about how these plans came about in the first place.”

Union chief delivers blunt message

Meanwhile, National Farmers’ Union president Tom Bradshaw has said reversing plans to charge inheritance tax on farms is “the only sensible course of action”.

Mr Bradshaw met Mr Reed today to warn him of the knock-on effect for family farms, homegrown food production.

Speaking about the meeting, the NFU president said: “I’ve spoken to a huge number of our members in the past few days and heard some really upsetting accounts of what this tax would do to family farms.

“I’ve heard about distressed elderly parents who are having to apologise to their children in tears for something that isn’t their fault, telling them they’re sorry because they feel they’re now a burden on the family.

Brian Henderson: Budget has sent shockwaves through farming industry

“I’ve heard from families who can’t see any way they can plan for a future which doesn’t result in losing their business. Men and women who’ve spent years building up farm businesses now wondering what’s the point in carrying on when it’s going to be ripped apart.

“The Treasury has got its figures wrong. This policy won’t protect family farms, it will do the opposite.”

Ramping up the pressure

The NFU is planning a “mass lobby” of MPs at Westminster on November 19.

And thousands of people have already signed a petition, launched by the Conservatives, to “stop the family farm tax”.

The Treasury has got its figures wrong. This policy won’t protect family farms, it will do the opposite.” Tom Bradshaw, NFU

According to Ms Cross, thousands of farms across Scotland will be “impacted by this cruel tax regime”, with the MP also warning the effects will be felt for decades to come.

SNP MP demands tax rethink

Meanwhile, the SNP has written to the chancellor demanding the government rethinks its “Budget blow to farmers”.

The call came from Mr Logan, who said: “In one fell swoop the chancellor has scythed away support for Scottish farms.

“This is a body blow to family farms, with the consequences being realised in the destruction of the farming tradition and in higher food prices.

“Farmers are rightly outraged that the Labour Party told them a bare-faced lie.”

Mr Reed told farmers in 2023 that, if elected, his party would “have no intention of changing APR”.