Minister says farmer inheritance tax changes have been done in a 'fair manner'
Inheritance tax changes for farmers were “done in a fair manner”, the flooding minister has said during a visit to Leicestershire. Emma Hardy also thanked British farmers for the work they do to produce our food, saying: “We absolutely value them.”
Ms Hardy spoke to LeicestershireLive from the rural capital of food - Melton - arguing that the tax changes will not impact as “many farmers as many of them fear it will at the moment”. Changes to Agriculture and Business Property Relief - an effective inheritance tax rate of 20 per cent on farmland and property over £1 million to be introduced from April 2026 - would only affect 500 estates a year, the government said.
This number is contested by farmers. The majority of British supermarkets including Tesco, Asda, Sainsbury’s, Co-op and M&S have also sided with farmers - urging the government to rethink its planned changes to inheritance tax.
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Ms Hardy said the changes were fair though. She told LeicestershireLive: “The government has said time and time again, food security is national security, it's something that matters to us, it matters to the department. This particular issue around inheritance tax is something we think has been done in a fair manner, we don’t believe it will impact as many farmers as many of them fear it will at the moment.
“But obviously they keep talking to the government, we respect them and value them, we want to work with them. That’s why we have got a record-breaking budget to go into farming in the next year to show how much we value the farmers in this country and that would be my main message to them.”
The government also said that two people with farmland, depending on their circumstances, would be able to pass on farmland and property with a value of £3 million without paying inheritance tax. However, farmers are still unhappy.
Simon Orson, chairman of the farming collective, Midlands Farmers, said rallying would continue to keep the issue at the “top of the agenda.” He said: “Supermarkets coming out in support is fantastic - they realise it is important for the supply chain.
“Supermarkets have a lot of leverage with the government, so they can help put forward our arguments and help force a U-turn. We work together, we do not need to protest against the supermarkets because they are on our side. We are now working on the banks to come out [in support].”
Melton and Syston's Conservative MP, Edward Argar, said he had “made clear” the government had made the “wrong decision” on proposed inheritance tax changes. He said: “I think farming isn’t just a job, it’s a way of life and that family farms are like the tools of the trade. Without that land, without being able to pass it on, you can’t actually carry on that trade and these are the people who feed us.
“I have made clear that I think that the government on that one has made the wrong decision and I have called on them to reverse that decision and back our family farmers.”
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