Delegates at the 2025 National Farmers’ Union (NFU) Conference heard from Defra Secretary Steve Reed, who, whilst clearly stating the Government would not be backing down on IHT measures, did apologise for the shock the IHT announcement had created in the farming community.
The Department for Environment, Food and Rural Affairs (Defra) remained firm on inheritance tax announcements previously made in the Autumn Budget, with NFU president Tom Bradshaw calling the policy “morally wrong”.
Addressing the conference, Bradshaw said: “There were only 87 words in Labour’s manifesto about farming, but some of those words gave us hope for the future; policies on imports, binding targets for British food for the public sector, a recognition that food security is national security.
“We recognise these are still early days for a new Government, but new ministers had hardly found their way to their offices when they broke their first promise. And it’s one which overshadows all else, wiping out our ability to plan, to invest and, often, to hope. It hangs over our farms, our families, our futures: the family farm tax.
“This policy is morally wrong. I have received hundreds of desperate messages, taken hundreds of panicked calls.
“And it’s not just the NFU that thinks the Government’s figures are wrong. All major opposition parties have said so. The agricultural valuers say so. The CBI says so. Even Labour’s own tax advisers say so. All of the UK’s major supermarkets have called for the Government to pause and consult.”
“I will consider my time as Secretary of State a failure if I do not improve profitability for farmers up and down this country.”
Steve Reed, Defra
Responding, Defra Secretary Steve Reed said: “Now, I can’t give the answer I know many of you want on inheritance tax. But I want you to know that I understand the strength of feeling in the room and in the sector… I am sorry it’s a decision that we’ve had to take.
“I will consider my time as Secretary of State a failure if I do not improve profitability for farmers up and down this country.
“There’s a lot to be done to make British farming profitable and viable for the long term. I know we can only get there if we build the future together.
“We will work with Tom, the NFU and farmers around the country to support farmers to keep producing the food we love to eat. This requires a new approach that recognises farms are businesses, and businesses need to turn a fair profit.”
In a Q&A session, chair Charlotte Smith asked what Reed thought about the IHT policy and its impact on his ability to deliver his agenda, with Reed stating that he was “genuinely sorry” about the shock the decision had created.
Defra announcements
Announcements at the conference included:
- A 5-year extension to the Seasonal Worker visa route
- Another window of the Farming Equipment and Technology Fund, with around 346 million available
- New Farming Innovation Programme grants worth more than £42.5 million
- The appointment of a Commissioner for Tenant Farming Sector
- Legislation needed to implement Precision Breeding Act (2023) will be laid
- Government catering contracts will favour “high quality, high welfare” local produce
- New pig sector regulations to ensure supply chain fairness
- Farming in Protected Landscapes will be extended to 2026
- Government will invest £200 million in a new National Biosecurity Centre to improve disease resilience
- Keepers of cattle, sheep and pigs in England will have greater access to fully funded vet visits.
It was also announced that capital grants submitted before November would be taken forward, as well as highlighting a £30 million investment towards increasing Higher Level Stewardship payment rates.
