I welcome the Government’s announcement that, from April 2026 – when changes to Agricultural and Business Property Relief are due to be introduced – the tax-free threshold for agricultural and business assets will be set at £2.5 million rather than the £1 million previously planned.
This change follows months of tireless campaigning by farmers and family-run businesses in Thirsk and Malton and across the country. Over recent months, I have met regularly with local families and business owners, listened to their concerns, and raised those issues directly in Parliament. This has included highlighting the case of the Emmerson family at Prime Minister’s Questions last year.
While this decision will provide some relief, I am clear that the months of uncertainty have already been deeply damaging to our rural and local economy. Investment plans have been put on hold, hiring frozen, and in some cases farms and family businesses have been sold in anticipation of the tax hit. Many families have also faced significant heartache and stress, alongside substantial professional costs, including fees paid to solicitors and accountants, as they scrambled to reorganise succession and inheritance plans.
This partial U-turn is welcome, but it does not go far enough. For some time now, I have been speaking directly with farmers and family-run businesses across Thirsk and Malton, listening to their concerns and raising those issues in Parliament.
Family farms and family businesses are the backbone of our rural and local economy. Many have been deeply worried about the impact this tax would have on their ability to pass their life’s work on to the next generation. The emotional toll has been considerable, and families have also had to bear the financial burden of paying solicitors and accountants simply to safeguard what they have built.
“While today’s change shows that pressure is having an effect, there is still more to do to fix a policy that remains deeply damaging. The Conservatives remain committed to fully abolishing the Family Farm and Family Business tax.
