'We will not give up' - Farmers vow to keep pressure on 'family farm tax' as MP insists ministers won't budge

Farming unions have vowed to “keep up the pressure” on the UK Government to revise the controversial “family farm tax”.

From next year, a 20 per cent inheritance rate is set to be levied on agricultural assets worth more than £1 million, which were previously exempt.

The proposals, announced in last year’s Autumn budget, have been described as “draconian” and “industry threatening” by farming unions. The plans saw tractors descend on Westminster and Holyrood and elsewhere across the UK on several occasions in protest earlier this year.

Royal Highland Show takes place over four days in June and is Scotland’s largest agriculture event

Asked if the inheritance tax changes are likely to go ahead, National Farmer’s Union Scotland (NFU Scotland) leader Andrew Connon said the organisation is still lobbying hard to fight against them.

Andrew Connon, head of the National Farmers Union Scotland | NFU Scotland

Speaking at the Royal Highland Show, Mr Connon said: “We will keep the pressure on because it is so fundamentally important.

“It has been the most emotive thing I’ve come across in my career in the union. We will not give up the fighting. We will not give up.”

The UK government insists only around 500 farms will be impacted, but the figure is disputed, with rural groups claiming the impact will extend a lot further.

A report published earlier this year showed almost half (49 per cent) of farmers have paused or cancelled investment in their businesses because of what the fiscal changes would bring.

Farming unions have previously called for a pause in the debate until a profitability review of farmers in the UK had been carried out.

Last month, the Commons Environment, Food and Rural Affairs Committee (Efra), which includes seven Labour MPs - a majority - warned UK ministers should delay the reforms to farming inheritance tax due to “poor” communication in policy that could impact vulnerable farmers.

The Efra report called on UK government ministers to push back announcing its final agricultural property relief (APR) and business property relief (BPR) reforms until October 2026, to come into effect in April 2027. They said by doing so it would bring a “better formulation of tax policy”, which would buy more time for “vulnerable farmers” to seek advice.

A response to the report from ministers is due to be issued next month, the NFU Scotland said.

Secretary of State for Scotland Ian Murray, who also attended the show, acknowledged there are disagreements in the agricultural sector over the so-called family farm tax, but insisted “we’re not going to change our minds”.

Scottish Secretary Ian Murray | PA

Despite opposition to the proposed tax changes from farming unions, Mr Murray, who attended the UK Government stall at the show, said the debate had not led to antagonism at the show.

Mr Murray said: “I’ve just met with the NFUS and the president there.

“We had a long discussion for 40 minutes on issues we’re helping them with.”

He said these included seasonal worker immigration issues.

The Scottish Secretary added: “They’re very, very happy about the SPS agreement and the EU trade deal.

“They want to advance that and go even further for obvious reasons.

“And then we had a small chat about inheritance tax as well.

“Of course it’s an issue where we’re not going to agree on everything.

“But the UK Government’s been pretty clear that we made that change in October, we’re not going to change our minds on that.

“So we’re going to have continued dialogue and discussions with the industry.”

The Treasury will consider alternative proposals, he said, but the tax changes make the system “fairer” and will stabilise the economy.