The Environment, Food and Rural Affairs (Efra) Committee has urged Government to delay the implementation of inheritance tax (IHT) changes to “allow for better formulation of tax policy”.
The Efra Committee highlighted that delaying the announcement of the final agricultural property relief (APR) and business property relief (BPR) reforms until October 2026 would “provide the Government with an opportunity to convey a positive long-term vision for farming”, and it would “protect vulnerable farmers who would have more time to seek appropriate professional advice”.
In the report, MPs noted the “difficult economic and geopolitical circumstances” and praised Government’s commitments to backing British produce and supporting farmers, but raised concerns that “high-profile policies have been announced prior to the completion and publication of the strategies and reviews that Defra says will inform and guide its vision”.
MPs also stated that changes announced in the Autumn Budget 2024 were made without adequate consultation, impact assessment or affordability assessment. This means that the impact of the changes “on family farms, land values, tenant farmers, food security and farmers in the devolved administrations” is “disputed and unclear”, with a risk of producing unintended consequences. MPs said that “reforms threaten to affect the most vulnerable”, and they want the Government to consider alternative reforms before justifying its final approach.
Restoration of trust is “urgently required”
Referring to a March 2025 survey, the report highlighted that before the Autumn Budget, 70% of UK farmers felt optimistic about the future of their rural businesses. After the Budget, this number fell to 12%.
MPs went on to say that the “sudden closure” of the Capital Grants scheme in November 2024, which was subsequently reopened, and the ending of SFI 2024 “with no specific warning”, have “been perceived by the sector as a breach of trust”. The Committee urged that “lessons must be learned from this failure of communication”, saying that “a restoration of trust is urgently required”.
“Policies affecting farmers have been announced without due consideration or explanation of their impact or their rationale.”
Alistair Carmichael MP, Efra
Chair of the Efra Committee Alistair Carmichael MP said: “The Committee has taken its work extremely seriously in developing this report and in agreeing our findings. There is an opportunity here to rebuild trust and confidence in the farming sector and I hope that the Government will take our recommendations seriously.
“The way in which the Government has behaved over recent months has clearly negatively affected the confidence and wellbeing of farmers. Changes to APR and BPR in the Autumn Budget, the sudden closure of the Capital Grants scheme in November 2024, and the abrupt ending of SFI applications in March have all led farmers to feel that they cannot rely on the Government to live up to its commitments.
“The Government, however, seems to be dismissing farmers’ concerns and ignoring the strength of feeling evidenced in the months of protests that saw tractors converge on Westminster and up and down the country.
“We have seen that Defra’s communications with farmers have been poor, with confusing and sometimes contradictory messaging. There has been a lack of adequate consultation. Policies affecting farmers have been announced without due consideration or explanation of their impact or their rationale.”
“Farmers urgently need clarity, certainty and advance notice of changes.”
Alistair Carmichael MP, Efra
Carmichael continued: “Farmers ought to be the essential element in the Government’s plans both to achieve food security and to restore and protect the environment. When they make decisions for their businesses, farmers have to plan for the long term - but the landscape they are operating in currently is unclear.
“Farmers urgently need clarity, certainty and advance notice of changes - they cannot be expected to rethink their businesses on a whim. It is essential that Defra focuses on rebuilding trust through good-faith communications with the sector.”
NFU Scotland welcomes the report
NFU Scotland president Andrew Connon commented: “This report is a vindication of everything we’ve said since January. Our farmers, crofters and growers have faced months of anxiety, not just about future planning but about survival.
“The Efra Committee has now echoed our call to pause and rethink these damaging proposals. We thank them for listening and we urge HM Treasury to do the same.”
