The Conservative Party has accused the government of attempting to avoid parliamentary scrutiny by quietly announcing a major U-turn on inheritance tax for farmers just two days before Christmas.
A Policy 'Snuck Out' Before the Holidays
In a press release issued on Tuesday, the Department for Environment, Food and Rural Affairs revealed it would raise the threshold for taxing inherited agricultural land and assets from a planned £1 million to £2.5 million. The move reverses a key budget announcement made by Chancellor Rachel Reeves last year, which proposed a 20% levy on such assets above £1 million, ending reliefs in place since the 1990s.
Shadow Environment Secretary Victoria Atkins criticised the timing, telling Sky News: "This being snuck out the day before Christmas Eve means that, of course, we haven't had chance to scrutinise this properly in parliament." She added that the government appeared to be trying to "slip this under the radar" while the public was distracted by festive preparations.
Pressure Leads to a Partial Reversal
The U-turn follows months of intense lobbying from the agricultural community. Farmers have staged regular protests in Westminster, and Labour MPs representing rural constituencies warned of severe impacts, including concerns about farmer welfare. Prime Minister Keir Starmer acknowledged last week that some farmers were reportedly contemplating suicide over the proposed changes.
Environment Secretary Emma Reynolds confirmed the new £2.5 million threshold. According to Treasury estimates, this will reduce the expected revenue from the tax from £430 million to £300 million, a £130 million shortfall. Officials did not specify how this gap would be filled, though the sum is a small fraction of the Chancellor's reported £22 billion fiscal headroom.
Relief and Unanswered Questions
Tom Bradshaw, President of the National Farmers' Union (NFU), called the announcement a "huge relief to many." However, significant questions remain. Victoria Atkins declined to commit to scrapping the tax entirely if the Conservatives win the next election, highlighting ongoing concerns for some farm businesses.
"There will still be farms out there," she said, "where – because of the investment and the nurturing of the land by their fathers, grandfathers, grandmothers, great grandmothers over the generations – they simply will not be able to pay this tax bill, even with this welcome U-turn by the government." The policy is due to be debated in parliament next month.
