The Countryside Alliance has today welcomed a major cross-party intervention by the House of Commons Environment, Food and Rural Affairs (EFRA) Committee, which has called on the government to delay its controversial inheritance tax changes until 2027 to allow for proper consultation and consideration of the impact on farming families.

This important report, published today (16 May), comes after months of campaigning by the Countryside Alliance and others in the rural community, warning that rushed reforms to Agricultural Property Relief (APR) and Business Property Relief (BPR) – proposed in the Autumn 2024 Budget and now known as the Family Farm Tax – risk causing serious harm to family farms, rural livelihoods and food security.

Crucially the Committee, chaired by Liberal Democrat MP Alistair Carmichael but with a majority of Labour members, found that the changes to APR and BPR were announced without adequate consultation or assessment of their impact. The report warns that the reforms risk producing “unintended negative consequences” and could affect “the most vulnerable,” particularly small family farms.

The EFRA Committee report echoes the Alliance’s campaigning in calling for a pause and a re-think. While the report accepts the objective of closing tax loopholes exploited by wealthy investors, as we do, it argues that there are alternative ways to achieve this without jeopardising the viability of family farms. It recommends that the government delay any final decision on the reforms until October 2026, with implementation not before April 2027, and use that time: 

“to consult on its proposed changes, conduct an impact and affordability assessment, and consider policy measures and mitigations to reduce any unintended negative consequences,”

and then:

“publish its evaluation of and rationale for following or not following alternative policy measures presented by stakeholders such as the Institute for Fiscal Studies and the National Farmers Union.”

Standing with others in the farming and rural sector, Countryside Alliance campaigning has helped put inheritance tax reliefs for farming firmly on the political agenda. We have briefed MPs extensively ahead of relevant parliamentary debates. We also made a formal submission to the EFRA Committee urging it to investigate and report on the issue. We are pleased that the Committee has not only listened but taken action.

The report also highlights the wider collapse of confidence in government support for farmers. A Farmers Guardian survey cited by the Committee shows that optimism among UK farmers fell from 70% to just 12% after the Autumn Budget. A staggering 84% said their mental health had been negatively affected by the changes, with the sudden closure of the Sustainable Farming Incentive (SFI) and inheritance tax changes as major sources of stress.

The Committee was highly critical of the government’s handling of these decisions, warning that abrupt changes and poor communication have eroded trust. It calls for the government to rebuild confidence through greater transparency, clarity, and long-term planning – including through its forthcoming 25-year Farming Roadmap.

This report marks a vital step forward. It is a cross-party recognition of the deep concerns raised by the farming community, and a victory for common sense. The Countryside Alliance will continue to press Ministers to accept the Committee’s recommendations and work with, not against, those who feed and care for the countryside.