Autumn Budget date announcement sparks debate among farming leaders

Chancellor Rachel Reeves has opted to set the date of the 2025 Autumn Budget a month later than last year, prompting much debate on what we can expect, given the recent news that government borrowing has reached a 27-year high.

Concerns are particularly high in the farming sector, after last year’s Budget contained plans to restrict inheritance tax reliefs for farmers, among other unpopular policies.

David Bean, parliament and government relations manager at Countryside Alliance, said that the Autumn Budget 2025 represents a key opportunity for the government to begin mending its “broken relationship” with the countryside and rural communities.  

“Controversial policies, such as the family farm tax, have created this rift, so we would urge the government to listen to those, including the Labour majority EFRA committee, who have called for an urgent rethink.  

“Rachel Reeves was right to say that hard-working people feel stuck – she would do well to remember that farmers are first and foremost among that number,” he added. 

‘Passing on family business may be even more difficult’

The news follows media speculation that the Treasury is looking at ways to raise more money from inheritance tax thresholds and increase capital gains tax rates.  

CLA president, Victoria Vyvyan, expressed her concerns about the changes to the inheritance tax that were announced during the last Autumn Budget.  

She said: “Passing on a family business is how parents keep their life’s work alive through their children. It sounds like Labour is planning to make this even more difficult.  

“Cap the transfer of business assets, and families could be hit with immediate bills they can’t pay. That could mean selling stock, letting go of employees, or walking away from a trade built over a lifetime.” 

Ms Vyvyan added that higher capital gains rates could keep owners hanging on for years to protect the viability of the business, making it harder for the sons, daughters and apprentices to step in. 

 “They say this will raise money. In truth, it would cost the people who grow our food, keep our shops open and care for our countryside – balancing the books by cutting the future short,” she concluded. 

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Will taxes be increased?

According to the BBC, UK government long-term borrowing costs have reached their highest level since 1998. This is expected to increase the pressure on the chancellor ahead of the next Autumn Budget. 

The interest rate on 30-year government bonds has jumped to 5.72%, making it more expensive for the government to borrow money.

This has led to much speculation that chancellor Reeves may be looking at increasing taxes to meet the borrowing and spending rules. 

NFU Mutual said that a little-known but valuable inheritance tax exemption may be targeted by Rachel Reeves. 

The ‘gifts out of normal expenditure’ is one of the most valuable but least known inheritance tax exemptions – which allows those with surplus income to pass on wealth through regular gifts.   

NFU Mutual explained that more people are now gifting money to their families to minimise their inheritance tax burden ahead of changes announced in last year’s Autumn Budget, which will see unspent pensions come within the inheritance tax net from April 2027. 

Sean McCann, chartered financial planner at NFU Mutual, said: “Currently, if you make regular gifts, there’s no restriction on how much you can give away immediately free from IHT, provided it is out of your income and doesn’t impact your normal standard of living.     

“This is likely to be in the chancellor’s sights in the forthcoming budget. With no upper limit, it currently allows those with high incomes to give away significant sums immediately, free from IHT.  

“Many use the exemption to make outright gifts, put money into trust, or invest in pensions for younger members of the family.” 

Mr McCann added that as the exemption is not claimed until after death, it is important to keep records of your income, expenditure and gifts. 

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