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Farm tax change dubbed 'best Christmas present'

News imageAndrew Moralee Andrew Moralee is a middle-aged farmer wearing a brown jumper with a poppy. He is standing next to his son Jack who is about 20 and is wearing a blue coat. They are standing in a field and behind them is a fence, a gate and some trees.Andrew Moralee
Andrew Moralee, who farms with his son Jack in Willington, joined protests against inheritance tax plans

Farmers from north-east England and Cumbria have described the government's decision to raise the proposed threshold for taxing inherited farmland as "a relief" and "a step in the right direction".

At last year's Budget, ministers said they would start imposing a 20% tax on inherited agricultural assets worth more than £1m from April 2026.

But following months of protests by farmers and concern from some Labour backbenchers, that threshold has been increased to £2.5m.

Simon Bainbridge, the North-East representative for the Country Land and Business Association (CLA) said: "For so many family farms, this is a huge relief and a great Christmas present."

News imageSimon Bainbridge Simon Bainbridge is a man in his 40s with a beard and is wearing a blue top and reddish trousers. He is kneeling down in a field of crops and behind him several miles of fields and woodlands are visible Simon Bainbridge
Simon Bainbridge feared a "huge tax burden"

In an announcement released after MPs had left Parliament for the Christmas recess, Environment Secretary Emma Reynolds said: "We have listened closely to farmers across the country and we are making changes today to protect more ordinary family farms.

"It's only right that larger estates contribute more, while we back the farms and trading businesses that are the backbone of Britain's rural communities."

Mr Bainbridge, who farms at Cambo in Northumberland, reacted: "It means that the next generation can get on with growing food and looking after the environment without a huge tax burden."

News imageSeveral tractors driving through a town centre in convoy with a number of people looking on.
The government said it had listened closely to farmers who protested following last year's Budget

Andrew Moralee, who with his father farms 500 acres at Lowfield Farm at Willington in County Durham and hopes to pass the land to his son Jack, described the decision as "a step in the right direction".

But he added: "I still think this government is anti-countryside."

News imageScott Donaldson Scott Donaldson is a clean-shaven man of about 60 wearing a green-grey jacket and blue shirt and tie. He is presiding over an auction and is speaking through a head mounted microphone. He holds a stick used to signify a sale in his hand.Scott Donaldson
Auctioneer Scott Donaldson was surprised at the government's change in policy

Scott Donaldson, who is group director with H and H Auctioneers based in Carlisle, said: "It's a lovely time of year to get this sort of news.

"I've spoken to a number of elderly farmers who come to the market who were really worried about the future and this will really reduce that worry."

Mr Donaldson also paid tribute to all those who protested and the "rural MPs who stood up for their constituents".

"I honestly thought the government's heels were dug in on this one," he said.

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