‘Madness’ of IHT reforms revealed, says farming community
4th June 2025
Another farming industry representative, CLA, has spoken out following the publication of a new report by Family Businesses UK (FBUK) into the impacts of the inheritance tax changes.
The new report by Family Businesses UK (FBUK) into the impacts of the inheritance tax changes announced at the Budget was supported by 32 trade associations and is the most comprehensive analysis yet of how family business owners are likely to respond to the policy change.
The analysis, which has involved 4,174 businesses and farms, has shown that for family businesses affected by the change to BPR, investment is likely to fall most across Yorkshire and the Humber (-17%) and the East of England (-17%), while job losses will be greatest (-10%) in parts of Scotland, the North West and North East of England.
For businesses and farms impacted by changes to APR, the steepest cuts to investment are expected in Northern Ireland, the Midlands and the North East of England (-17%), while headcount could be reduced by between 10% and 12% across the North West and North East of England.
Parts of Cornwall and Aberdeenshire could be hardest hit by the changes, as both areas are expected to see sharp falls in jobs and GVA as a share of their local economies, the independent consultancy arm of the CBI has confirmed.
‘It is not too late’
Country Land and Business Association’s director of external affairs, Jonathan Roberts, said that the FBUK report has shown the “madness of the government’s inheritance tax reforms”.
The CLA expert continued: “Far from raising revenue for the Exchequer, they will actually reduce tax take – so not only are our farmers being harmed by these reforms, but so are our schools and hospitals.
“Treasury ministers have serious questions to answer, but it is not too late for them to change their mind. If they held their hands up and admitted they got it wrong, we can finally move on from this whole debacle.”
The NFU president has also commented on the news, highlighting the “catastrophic impacts” of the government’s “punitive” family farm tax on family farming businesses across the UK.
He also said that the report must serve as a “wake-up call” to Treasury; otherwise, the industry will face major cuts to investment and significant job losses.
READ MORE: Latest IHT report paints ‘catastrophic’ picture of family farming businesses
READ MORE: UK government denies answering key IHT questions
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