Pressure mounting on government to climbdown or pause inheritance tax plans

Carla Lockhart MP • July 2, 2025

The Labour government is in crisis and facing mounting pressure to climbdown on its proposed changes to Agricultural Property Relief (APR) and Business Property Relief (BPR).

Westminster MP and DUP Agriculture, Environment and Rural Affairs spokesperson, Carla Lockhart, has confirmed that inheritance tax remains firmly on the agenda for further debate in the House of Commons.

 

“The majority of Sir Keir Starmer’s pre-election manifesto promises are in tatters, and within twelve months since the Labour Party came to power, we’ve witnessed a number of significant U-turns on controversial policy proposals.

 

“It’s time the government also found reverse gear on the ‘farm tax heist’”.

 

The Upper Bann MP added: “As the inheritance tax row rumbles on, there is a growing mutiny within the corridors of the House of Commons, as more than 40 Labour MPs are set to rebel against the Chancellor’s plans.

 

“Rachel Reeves remains defiant, and from day one has ignored calls to meet with farmers and industry stakeholders to plot a more acceptable way forward. She is on a collision course to destroy the UK economy, which includes a £48 billion agri-food sector, responsible for over four million jobs. The industry that feeds our nation.

 

“The Labour Party came to power with a landslide majority, but week by week it’s fabric is falling apart at the seams. A growing number of Labour MPs are ‘feeling the heat’ in rural constituencies, and putting pressure on the Prime Minister and the Chancellor to reconsider or pause the proposals in their current format.

 

“There have also been calls to raise the threshold to safeguard working family farms, leaving the wealthiest landowners and investors to pay the tax levy.”

 

Historically, generations of UK farmers have been able to pass down their land and businesses tax-free, but the Chancellor’s autumn budget reforms threaten to decimate farms by introducing a 20% tax liability on assets valued in excess of £1 million. Rachel Reeves is set to implement her ‘death tax’ in April 2026.

 

Carla Lockhart MP added: “The backlash has been phenomenal since the budget was unveiled at the end of October. Thousands of farmers and tractors have descended on the streets of London in protest, we’ve witnessed mass rallies across the country, and pleas from industry stakeholders and trade bodies. Pro-Labour tax expert, Dan Neidle, also raised concerns, advising the government to find reverse gear or raise the tax threshold to £20 million.

 

“Recently, I had a very constructive meeting with Orkney and Shetland MP, Alistair Carmichael, chair of the Westminster Agri-Select Committee. We discussed at length, the EFRA committee’s report on Agricultural Property Relief (APR), and the cross-party call to halt the Chancellor’s proposed changes.”

 

The EFRA report, published in mid-May, is calling the government to delay announcing its final APR and BPR reforms until October 2026, with implementation not before April 2027.

 

Ms Lockhart explained: “This would allow time for a robust impact analysis, and meaningful consultation with industry unions and stakeholders. It would also provide a safety net to ensure that family farms are not unfairly penalised, giving elderly and vulnerable farmers ‘more time’ to seek appropriate, professional tax advice.

 

“The report raises concerns about the Chancellor’s lack of advance consultation, or impact and affordability assessments. Questions also loom over the value of farmland, the impact on tenant farmers and those governed by devolved administrations. Figures are disputed and unclear, and national food security is also at risk.

 

“With an evident upsurge in cross-party support, I’ll be working with Alistair and the committee to press for a pause on the government’s April 2026 deadline. This will allow time for the right evidence, the right figures and the right outcome for our farming and rural communities.”

 

The MP concluded: “There is far too much at stake to get this wrong!

 

“Alistair Carmichael MP is a real friend to the farmer, and we both appreciate what is at stake for generational farming, rural communities, food security and the UK economy.

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