Family Farm Tax: A Step Forward, But Not Far Enough

In recent months, I have continued to hear directly from farmers across Newbury and West Berkshire about the real and lasting impact of the Government’s changes to inheritance tax on farms, widely referred to as the family farm tax. What has come through most clearly is not just concern about the policy itself, but the damage caused by more than a year of uncertainty and anxiety, leaving farming families unable to plan for the future or pass on their livelihoods with confidence.

The Government has now announced that the inheritance tax threshold for farms and businesses will rise to £2.5 million. This shift is welcome, and it is right that ministers have finally acknowledged the depth of concern raised by farmers and rural communities. Liberal Democrats were the first to challenge this unfair tax when it was announced in last year’s Budget, and we have stood shoulder-to-shoulder with farmers campaigning for change ever since. This concession has been hard won.

But we should be clear: this does not fix the problem.

I raised this directly in Parliament, warning that many family farms in my constituency will still face inheritance tax bills of around £600,000. For families who are often asset-rich but cash-poor, that level of liability is simply unmanageable. The reality is stark, farms may be forced to sell off land, scale back operations, or even sell up entirely just to pay the tax bill. That risks breaking up family farms that have been built over generations and threatens the long-term viability of British agriculture.

Family farms are the backbone of rural communities like ours. They support local jobs, steward our landscapes, protect biodiversity, and play a vital role in our national food security. Undermining them is not just unfair - it is short-sighted. If we weaken British farming, we weaken our ability to feed ourselves in an increasingly uncertain world.

The Government has started to listen, but listening is not enough. Ministers must now be transparent about who is still affected, publish a full impact assessment of this policy, and be honest about the number of viable family farms that remain at risk. Farmers deserve clarity, not silence.

I will keep standing up for farmers across Newbury and West Berkshire, because supporting family farms is about fairness, food security, and the future of our rural communities.