Farming
Ministers raise inheritance tax threshold for farmers after months of protest
THE UK GOVERNMENT has increased the inheritance tax relief threshold for farmers from £1 million to £2.5 million, following months of pressure from the agricultural sector and widespread protests across the country.
The change marks a significant retreat from reforms first announced in Labour’s initial Budget last year, which had proposed limiting full inheritance tax relief on agricultural and business assets to the first £1 million.
Under the revised plans, due to take effect from April, individuals will be able to pass on up to £2.5 million in qualifying agricultural or business assets without paying inheritance tax. For married couples and civil partners, the combined allowance will rise to £5 million.
Assets above that level will attract 50% relief, meaning an effective inheritance tax rate of up to 20%, rather than the standard 40%.
According to the Department for Environment, Food and Rural Affairs (Defra), the revised threshold will reduce the number of estates affected by inheritance tax from around 2,000 under the original proposals to approximately 1,100, with the impact largely confined to the biggest farming operations.
The original plans sparked widespread anger within the farming community, including tractor protests outside Parliament, criticism from rural Labour MPs, and warnings from Baroness Minette Batters, the former NFU president, who said the proposals had caused severe distress among farming families.
Announcing the change, Environment Secretary Emma Reynolds said ministers had “listened closely” to concerns raised by farmers and rural businesses.
“Farmers are at the heart of our food security and environmental stewardship,” she said. “We are increasing the individual threshold from £1 million to £2.5 million, which means couples with estates of up to £5 million will now pay no inheritance tax.
“It is only right that larger estates contribute more, while we protect the family farms that underpin rural communities.”
The National Farmers’ Union welcomed the announcement. NFU president Tom Bradshaw said the move would be a “huge relief” for many farming families and acknowledged the pressure placed on elderly farmers by the original proposals.

In Wales, the change was also welcomed, though concerns remain about longer-term pressures on the sector.
The Welsh Deputy First Minister with responsibility for rural affairs, Huw Irranca-Davies, said the Welsh Government had repeatedly raised concerns with Westminster.
“Small and medium-sized family farms play a crucial role in Wales’ economy, culture and language,” he said. “We welcome this announcement and will continue discussions with farming unions and the UK Government on its impact here in Wales.”
Farmers’ Union of Wales president Ian Rickman described the move as a “welcome early Christmas present” after months of uncertainty.
“The initial proposals caused untold anxiety and damaged confidence across the rural economy,” he said. “While we remain frustrated by how these reforms were handled, the revised threshold provides much-needed relief at a difficult time for Welsh farming.”
Opposition parties, however, said the changes did not go far enough.
Conservative leader Kemi Badenoch described the move as a “huge U-turn” and said other family businesses remained exposed. Liberal Democrat MP David Chadwick called the concession “hard won” but warned that many farms would still struggle financially, adding that his party would continue pushing for the tax to be scrapped entirely.
Reform UK deputy leader Richard Tice said the climbdown did little to undo “a year of anxiety” for farmers, while Plaid Cymru’s Llyr Gruffydd MS said the episode highlighted “chaos” within the UK Government and accused ministers of causing unnecessary harm to family farms.
Welsh Conservative Shadow Farm Minister Samuel Kurtz said the policy shift came “too late”, adding that wider issues — including bovine TB, nitrate regulations and uncertainty over the Sustainable Farming Scheme — continued to place pressure on Welsh agriculture.
While the revised threshold has eased immediate concerns for many farming families, the debate over inheritance tax, farm succession and the long-term sustainability of British and Welsh agriculture is far from over.
Farming
FUW welcomes higher inheritance tax threshold as ‘early Christmas present’ for farmers
THE FUW has welcomed a UK Government announcement to raise the proposed inheritance tax threshold on agricultural assets, describing the move as an “early Christmas present” for farming families across Wales.
The Government confirmed on Tuesday (Dec 23) that the cap on 100% Agricultural Property Relief (APR) and Business Property Relief (BPR) will increase from £1 million to £2.5 million per person. Assets above that level will qualify for 50% relief.
When combined with measures announced in last month’s UK Budget allowing unused reliefs to be transferred between spouses, the changes will create an effective inheritance tax allowance of up to £5 million for married farming couples.
The revised thresholds are expected to come into force on April 6, 2026.
Responding to the announcement, FUW President Ian Rickman said the decision would ease months of uncertainty that had weighed heavily on the sector.
“Today’s news will be a welcome early Christmas present for many farmers across Wales who have endured months of uncertainty and anxiety caused by the UK Government’s ill-thought-out changes to inheritance tax,” he said.
“The Government’s initial proposals caused untold worry for farming families and seriously dented confidence across the sector and the wider rural economy, as farmers feared for the long-term succession of their businesses.”
The FUW said it had spent the past year lobbying for a fairer and more proportionate approach to inheritance tax reform, warning that earlier proposals risked undermining family-run farms and rural communities.
Mr Rickman added: “Our calls for change have been echoed by opposition parties, cross-party parliamentary committees, and an increasing number of the Government’s own MPs.
“At a time of considerable uncertainty and volatility for farmers across Wales, these revisions to the tax threshold offer some much-needed relief.”
However, he said the union remained frustrated by how the reforms were originally handled.
“While we remain disappointed with the Government’s approach, I would like to thank Ministers in the Wales Office for their willingness to engage in dialogue with us on this issue,” he added.
The FUW said it would continue to press for long-term tax policies that support farm succession, food security, and the sustainability of rural Wales.
Farming
GWCT welcomes Farming Profitability Review and calls for urgent government action
THE GAME & Wildlife Conservation Trust (GWCT) has welcomed the publication of the long-awaited Farming Profitability Review, describing it as a timely and important intervention for the future of British farming.
The six-month review, led by Baroness Minette Batters, sets out fifty-seven recommendations for government and industry aimed at improving the viability and resilience of farm businesses.
Nick von Westenholz, Chief Executive of the GWCT, said the report recognised the central role farming plays in both food production and environmental recovery.
He said: “We very much welcome the publication of this important review led by Baroness Minette Batters.
“Farming, environmental delivery and nature recovery are intrinsically linked. With nearly three-quarters of the UK’s land mass used for agriculture, it is vital that farmers are supported to integrate environmental measures with profitable businesses that provide their livelihoods.
“Our own experience at the Allerton Project in Loddington underlines just how challenging this balance has become. Producing food alongside nature recovery is increasingly difficult, and like many farms, non-farming income has become essential simply to keep producing food. Baroness Batters’ report could not be more timely in recognising that farming underpins our rural communities and is fundamental to national food security.”
The GWCT also praised the Review’s strong emphasis on collaboration between farmers as a key driver of future profitability.
Mr von Westenholz added: “We particularly commend the Review’s focus on farmer collaboration. Proposals for regional Agri-Growth Hubs and the expansion of Farm Environmental Delivery Groups across England’s ninety-three river catchments have the potential to be truly transformative.”
The Trust highlighted its own pioneering role in developing farmer-led, voluntary collaboration through initiatives such as farmer clusters and the Environmental Farmers Group.
“These models show how collaboration at a landscape scale can deliver real environmental gains alongside economic benefits,” Mr von Westenholz said. “By working together, farmers can share costs, access funding streams not readily available to individuals, and deliver coordinated nature recovery while retaining control of their own farms.”
The Review’s recommendations on developing environmental markets and natural capital were also strongly endorsed.
The GWCT said mandating the Taskforce on Nature-related Financial Disclosures (TNFD) would help create a functioning natural capital market, allowing private sector green finance to complement – and increasingly replace – public funding.
“The Review is admirably clear about the government’s role in ensuring the private sector takes responsibility for offsetting the environmental impacts of economic activity,” Mr von Westenholz said. “That message should give ministers serious pause for thought amid reports that requirements around biodiversity net gain and nutrient neutrality may be weakened. Doing so would risk disastrous consequences for nature restoration.”
He concluded: “It is imperative that these priorities are adopted by government as a matter of urgency. We look forward to working with policymakers and industry partners to implement the Review’s recommendations and help build the thriving, profitable and sustainable farming sector our nation needs.”
Farming
RSPCA backs new animal welfare strategy but says more action needed
Charity welcomes plans covering farmed animals, pets and wildlife but urges stronger laws and enforcement
THE RSPCA has welcomed the UK Government’s newly announced animal welfare strategy, describing it as an “important first step” towards improving the lives of millions of animals across the country.
The strategy, published on Sunday (Dec 21), sets out proposed measures aimed at improving welfare standards for farmed animals, pets and wildlife, including plans to tackle cages for laying hens, pig farrowing crates, CO₂ stunning of pigs, trail hunting, snares and the extreme breeding of dogs.
The charity said the proposals could mark meaningful progress if followed through with strong legislation and enforcement.
Thomas Schultz-Jagow, the RSPCA’s Director of Advocacy and Prevention, said: “We welcome the UK Government’s new animal welfare strategy, which is an important first step towards improving the lives of millions of farmed animals, pets and wildlife.
“People in the UK care deeply about animals and want to see governments leading the way by outlawing cruel practices and introducing laws that treat animals with the kindness and respect they deserve.”

Farming practices under scrutiny
Lower-welfare farming remains the single biggest welfare challenge, the RSPCA said, with more than a billion animals farmed for food in the UK each year.
The strategy proposes action on keeping animals in cages and on the continued use of high-concentration carbon dioxide to stun pigs at slaughter – a practice the RSPCA says causes significant distress and suffering and has campaigned against for more than a decade.
The Government also plans to promote slower-growing chicken breeds. Around 90% of meat chickens in the UK are fast-growing breeds, which often suffer from lameness, heart defects and early death due to the speed at which they are reared.
For the first time, the strategy proposes consulting on welfare standards for fish slaughter and guidance on killing decapod crustaceans, including potentially banning live boiling. Decapods were formally recognised as sentient under the Animal Sentience Act 2022.
RSPCA Assured scheme highlighted
RSPCA Assured, the charity’s ethical food label, currently assesses more than 4,000 farms and businesses against higher welfare standards.
Executive Director Toby Baker said: “When we visit an RSPCA Assured member farm, we see healthy animals with space to move, rest and feed, free from crates and cages. That is what we want for all farmed animals.
“Creating a kinder food system is achievable. Thirty years ago battery cages for hens were the norm, yet today around 80% of eggs produced in the UK are cage-free. That shows what can be achieved when government, farmers and welfare experts work together.”
However, the RSPCA expressed disappointment that mandatory method-of-production labelling was not included in the strategy, despite a Government consultation last year showing 99% public support for clearer food labelling.
Measures on pets and breeding
The strategy also includes proposals to tighten dog-breeding regulations, require all breeders to be registered, and license currently unregulated dog fertility clinics. The charity said this could help tackle puppy farming and the extreme breeding of dogs with exaggerated traits, such as flat faces, which often lead to lifelong health problems.
David Bowles, Head of Public Affairs at the RSPCA, said: “Health and welfare must come first when breeding pets. Exaggerated traits are causing widespread suffering, and breeders must put animals’ wellbeing ahead of appearance or profit.”
The Government has also proposed licensing pet rescue and rehoming centres, a move the RSPCA said should apply to both pets and wildlife.
Wildlife protections welcomed
On wildlife, the charity welcomed a planned consultation on banning trail hunting, moves towards outlawing snares in England, restrictions on spring traps, and the introduction of a statutory closed season for hares.
The RSPCA said mounting evidence suggests trail hunting is being used as a cover for illegal hunting with dogs, while snares continue to cause widespread suffering to both target and non-target animals.
David Bowles added: “We need a robust animal welfare strategy because how we breed, farm, sell and use animals – or encroach on their habitats – has real consequences.
“This plan is an encouraging start, but it must be backed by strong laws and enforcement to ensure it delivers genuine change for animals.”
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