Mayor and North Yorkshire MPs react to farm tax changes

It follows yesterday’s announcement (December 23) from the Department for Environment, Food and Rural Affairs that from April 2026 the inheritance tax relief threshold for farmers will increase from £1 million to £2.5 million.

Farmers currently do not pay inheritance tax on agricultural and business assets which they pass on.

Recommended reading:

Government climbdown on farmers’ inheritance tax following months of protests

‘It’s saved our farm basically’ – Government waters down inheritance tax plan

More than half the county’s farms don’t make sustainable profits, says Mayor’s report

In the Government announcement in the October 2024 Budget, the full 100 per cent tax relief was to be restricted to the first £1 million of property, a policy that led to months of protests across the country.

David Skaith, Mayor of York and North Yorkshire said​: “This is a welcome decision and will end months of anxiety experienced by many farmers across York and North Yorkshire.

“I have made clear the impacts, identified in our farm finance review, would have on farmers and rural businesses in our region.

“Yesterday’s announcement and the increase in the threshold is a huge step towards addressing those concerns.​
​
“Our farmers are a vital foundation to our communities in York and North Yorkshire, and Great Britain.

“I’ll continue working with partners and the Government to best support our farming communities and our nation’s food security.”​

Kevin Hollinrake, MP for Thirsk and Malton, also welcomed the announcement, saying he’d met regularly with families and businesses in his constituency over recent months who had been campaigning ‘tirelessly’ against the reforms.

However, yesterday’s announcement from Defra was described by Mr Hollinrake as a partial U-turn, adding that the Conservative Party remains committed to fully abolishing the thresholds which come into effect on April 6.

He said: “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.”

Alison Hume, MP for Scarborough and Whitby, said the news means 85 per cent of farming estates claiming agricultural property relief and business property relief won’t be paying inheritance tax.

She said: “Having engaged with the local farming community and listening to their concerns, I fought hard alongside other rural colleagues to press the Treasury for these vital changes, and I am so pleased that the Chancellor Rachel Reeves listened to our concerns about rising land values and farm succession.

“Raising the threshold will make a real and practical difference, helping to protect family farms and give greater certainty for the future.

“Farming is central to our rural economy and to food production across the UK.

“These welcome changes will help provide stability for rural businesses and support long-term investment and stewardship of the countryside.

“This will be a welcome relief for farmers who are a huge part of our community who do so much in protecting our environment, which was demonstrated by their selflessness and courage during the wildfires this summer. ”

What do you think?

Feel strongly about this issue? Write us a letter. Please write no more than 250 words and you must provide your full name, address and mobile number.

Send your views by email to letters@thepress.co.uk