Tories Declare “Farming Emergency” Over Inheritance Tax Shake-Up

Conservative voices have sounded the alarm over proposed inheritance tax reforms, warning of a “farming emergency” that could jeopardise family farms and rural communities across the UK.

At the Conservative Party Conference, farming groups and party politicians joined forces to protest Labour’s planned changes to Agricultural Property Relief (APR) and Business Property Relief (BPR). Under the proposals, farms valued above £1 million would incur a 20 per cent inheritance tax on the portion exceeding that threshold, beginning in April 2026.

Shadow DEFRA Secretary Victoria Atkins framed the protest as a direct challenge to Labour’s rural policies, saying: “If Rachel Reeves tries a fudge at the Budget [with plans to scrap her proposed Inheritance Tax changes] … it is because of the campaigning of farmers up and down the country and the pressure we [the Conservatives] have placed on them.”

The Conservative Party has committed to presenting a detailed plan at the conference to counter what it calls a “food and farming emergency,” citing sustained pressure on farm businesses under Labour.

Backlash from Rural Stakeholders

The proposed reform has provoked outrage in farming circles. Critics argue that many farm families are asset-rich but cash-poor, meaning heirs might be forced to sell land just to meet tax obligations.

NFU Scotland has been particularly vocal. In its response to the UK Government’s consultation on the draft Finance Bill, the union warned the reforms would have “severe and far-reaching consequences” for Scottish agriculture. Jonnie Hall, NFU Scotland’s Director of Policy, cautioned that the proposals—in their current form—are already generating uncertainty and fear across the sector, putting the continuity of generational farming at risk.

Calls to Delay and Reassess

Some parliamentary voices are urging caution before full implementation. A cross-party group of MPs on the Environment, Food and Rural Affairs (EFRA) Committee has called for the changes to be delayed until April 2027, allowing more time for consultation and refinement.

Meanwhile, the UK Treasury has rejected a compromise from farming organisations—such as a clawback mechanism designed to protect family farms—saying the proposed reforms will stand. In response, NFU President Tom Bradshaw warned that member reaction would be one of “fury, … anger, … desperation.”

What Happens Next

As the Conservative Party positions itself firmly against the inheritance tax changes, the farming sector is gearing up for continued pressure. Whether Labour will recalibrate its proposals in the face of mounting industry and political resistance remains to be seen.

Source: The Scottish Farmer