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Agricultural industries join NFU鈥檚 call to #StopTheFamilyFarmTax at LAMMA

15 January 2025

Allied-industries-at-LAMMA-2025

Photo credit Simon Hadley

Speaking to numerous agriculture-related industries at the machinery and technology show LAMMA, the NFU has heard that they too are concerned their businesses will suffer because of the government鈥檚 family farm tax.

With the future of UK farms at serious risk from the proposed changes to Agricultural Property Relief (APR) and Business Property Relief (BPR), in addition to other inflationary policies within October鈥檚 Budget, including rises to National Insurance and the National Living Wage, it comes as no surprise the wider agri-food sector and allied industries are also questioning the impact of the recent Budget.

Independent analysis commissioned by the NFU shows that 75% of farm businesses could be impacted in some way by the family farm tax1. Meanwhile, new data from CBI Economics has shown that the changes to BPR could lead to more than 125,000 job losses, with family businesses significantly cutting investment2. Given so many of these businesses are reliant on a thriving farming sector for their own trade, they too are urging the government to reconsider the policy.

NFU President Tom Bradshaw spoke to the attendees at LAMMA. He said: "Just as family farm businesses stand to be crippled by this tax, businesses within the wider agricultural space may soon find themselves under crushing pressure too.

鈥淔arm businesses are often the bellwether of the rural economy and many have curtailed investment on their farms because any penny they had or could have borrowed will now have to go on saving the future of the farm.

鈥淔rom builders, vets and feed merchants, to fencers, machinery dealers and tool manufacturers, there鈥檚 been talk of calls drying up and order books looking sparse for the year ahead as their customers 鈥� Britain鈥檚 farmers 鈥� face a cash flow and confidence crisis that鈥檚 been exacerbated by the family farm tax. This shows the knock-on effect of poor policies, squeezed margins and a market not functioning properly.聽聽 聽

鈥淭hat is why we have chosen today to launch a pledge3 for businesses to sign to show they will join our fight to stop this unfair tax and secure the future of British family farming 鈥� the bedrock of the nation鈥檚 food and drink manufacturing industry 鈥� and those allied industries which聽rely on a thriving farming sector.

鈥淔or the future of our industry and for vital growth in the economy, I urge all businesses associated with agriculture to sign our pledge to show the Government it is not too late to review plans and consider the unintended consequences of changes to APR and BPR on our sector and the wider economy. Changes to inheritance tax must be paused and consulted on.鈥�

Mr. Bradshaw was joined on stage at LAMMA by Jeff Claydon, CEO of drill manufacturer Claydon, who explained how his business has been affected by the family farm tax. He said: 鈥淚 started our family drill manufacturing business alongside our farm 20 years ago and I鈥檓 incredibly concerned the inheritance tax changes will curtail privately owned businesses and growth in family businesses.

鈥淲ithout profit, you haven鈥檛 got a business. And the current policy and economic outlook means so many are seeing their profits slashed. In addition to the family farm tax, there are so many questions Government still haven鈥檛 got an answer for. For our business, the indecision about the Farming Equipment and Technology Fund means orders have stalled and we鈥檝e got warehouses of unmoved stock.

鈥淲e want growth, the government has repeatedly said it wants growth, but it must revisit its short-term plans for the agriculture industry because it is being stifled.鈥�

More information

  1. Read the analysis in full here.
  2. More information about the study by CBI Economics, commissioned by Family Business UK, .
  3. More information about the NFU鈥檚 pledge and how to sign, .