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John Swinney calls for UK Government U-turn on ‘family farm tax’

Farmers' union looks to Holyrood to soften the blow in its budget on December 4.

First Minister John Swinney at AgriScot.
First Minister John Swinney at AgriScot. Image: Ron Stephen

First Minister John Swinney told farmers today the UK Government’s planned changes to inheritance tax rules “should not be implemented”.

The fiscal raid on British agriculture has already been dubbed the “family farm tax”.

Speaking on the sidelines of the AgriScot event at the Royal Highland Showground in Edinburgh, Mr Swinney said it had “not been thought through”.

And it is already having a “chilling” effect on farming and rural businesses, he said.

Union’s ‘six from six’ wish list

Mr Swinney had earlier been presented with a list of “six asks” by the National Farmers’ Union Scotland (NFUS).

Among these was a request for him to personally raise the tax issue with Prime Minister Sir Keir Starmer.

NFUS also has major concerns about funding, delays to hi-tech cattle tagging, public procurement and the proposed new national park in Galloway.

Other asks on its “six from six by 26” list include better river and species management.

Why did the Autumn Budget upset farmers?

In her Budget on October 30, Chancellor Rachel Reeves announced a new £1 million threshold for agricultural property relief.

From April 6 2026, agricultural and business property assets worth more than this will be liable for inheritance tax at 20%.

NFUS says this change threatens food production, family farming businesses and the environment.

Farmer and girl n the countryside.
It is feared the changes to agricultural property relief will impact farmers’ succession planning. Image: Shutterstock

But the Treasury insists it will affect just over one-quarter of all UK farms.

Meanwhile, future funding for agriculture in Scotland will not be ring-fenced, as in the past.

It is part of a block grant worth £47.7 billion to the Scottish Government in 2025-26.

First minister says ‘family farm tax’ will make life ‘incredibly difficult’ for any budding new entrants to the sector

After a speech at AgriScot’s opening session, Mr Swinney warned the changes to inheritance tax reliefs will have major implications for the Scottish agricultural sector.

And they will make life “incredibly difficult” for potential new entrants to the industry, he said.

“There needs to be a review of these proposals,” Mr Swinney said.

Farming has been destroyed by Brexit.” John Swinney

The change in funding arrangements is another major threat to the future of Scottish farming, he warned.

Annual budgets for agriculture cannot deliver the kind of longer-term certainty the sector enjoyed before the UK quit the European Union, Mr Swinney said.

“Farming has been destroyed by Brexit,” he added.

Union looks to Scottish budget to deliver better news on December 4

NFU Scotland president Martin Kennedy used his AgriScot platform to call on the Scottish Government to deliver for food and farming in its budget on December 4.

And he urged all farmers, crofters and those involved in industries dependent on agriculture to join the planned rally outside the Scottish Parliament on November 28.

First Minister John Swinney, left, and NFUS president Martin Kennedy take notes at AgriScot.
First Minister John Swinney, left, and NFUS president Martin Kennedy take notes at AgriScot. Image: Ron Stephen

Mr Kennedy, who will step down as president in February, said: “The new UK Government’s first Budget not only hammered hard-working family farms and crofts with crippling tax bills, but it also saw the UK Government wash its hands of a commitment to multi-annual, ring-fenced funding for farming that has been in place for half a century.

“From a future funding perspective, that ball is now firmly and exclusively within the gift of Scottish Government.

‘Show of strength’

“And that is why we need all those with the best interests of our farming, crofting and food industries at heart to be outside Holyrood on November 28 in a show of strength.”

The new Labour government at Westminster has “pulled the rug from under our feet by imposing tax burdens on family farms”, Mr Kennedy said.

He added: “December 4 is a fantastic opportunity for the Scottish Government to now show, in spite of the UK Government’s decisions, they are willing to support the agricultural sector in Scotland.”


Share your views on the tax changes and how they may affect you in our comments section at the foot of this article


‘We are up against it’

Turning to the first minister, Mr Kennedy said: “The fact is we are up against it right now.

“But you have the power to change that. Although some of our issues are reserved to Westminster, you can still show your support.”

NFU Scotland has created a Budget information “hub”, which can be found at nfus.org.uk/media/budget-information.aspx

Tories’ petition to stop ‘family farm tax’ tops 90,000 signatures

Meanwhile, more than 90,000 people have signed a Scottish Tories’ petition to “stop Labour’s family farm tax”.

Party leader Russell Findlay and north-east MSPs Alexander Burnett, Maurice Golden, Tess White, Liam Kerr and Douglas Lumsden recently stood outside the front of Holyrood with placards to display their anger at the chancellor’s changes for the sector.

North-east MSPs with their 'farm tax' placards.
North-east MSPs with their ‘farm tax’ placards. Image: Scottish Conservatives

Aberdeenshire West MSP Alexander Burnett, said: “Labour’s cruel family farm tax must be reversed to safeguard our farming communities for generations to come.

“Farming is the lifeblood of the north-east and these deplorable tax changes could lead to the death of the family farm, crippling tens of thousands of families.

“This tax regime will have devastating consequences on a farmer’s ability to pass their business to their children and seriously threaten food security across Scotland.”

Conversation