The NFU partnered with Family Business UK and 30 other UK trade associations to assess the impact of recent changes to inheritance tax on family-owned businesses and farms, with a particular focus on BPR and APR (Business Property Relief and Agricultural Property Relief).
As part of the 2024 Autumn Budget, the government announced significant reforms to both BPR and APR.
From April 2026, the 100% rate of relief will continue for the first £1 million of combined agricultural and business assets, with a reduced rate of relief of 50% for amounts above this threshold.
Conducted by independent consultancy CBI-Economics, the study saw more than 4,000 businesses and farms across the UK take part.
Key findings revealed that:
- 49% of family farms have paused or cancelled planned investments since the budget, while 43% say they will do so before April 2026.
- An additional 34% say they have deferred or reduced investment already.
- 14% say they plan to sell off assets or part of the farm.
- One in ten say they've downsized farming operations since the Budget and 21% plan to do so before April 2026.
Looking at the wider, cross-economy impact of the reforms, the study found that more than 200,000 jobs could be lost by the end of this Parliament, with the GVA (gross value added – the figure used to measure economic value) reduced by £14.9 billion, creating a net fiscal loss to the government of £1.9 billion.
Read the full breakdown on familybusinessuk.org.
Businesses on a knife edge
NFU President Tom Bradshaw said the new research “clearly demonstrates what we already know; that the government’s plans for inheritance tax will have a devastating impact on the future of UK family farms, reducing the incentive for farmers to grow and limiting their ability to invest in their businesses”.
“The results from the survey are stark.
“They show that the proposed removal of Agriculture Property Relief and Business Property Relief have farming businesses on a knife-edge with investment falling rapidly across the board and the prospect of more than 28,000 job losses within the sector and supply chain over the next five years.”
“The results from the survey are stark.”
NFU President Tom Bradshaw
Tom said this is creating a significant barrier to growth when farmer confidence is at an all-time low.
He added: “The message to government from this survey could not be any clearer – the future of British farming is on the line. We have the solutions but ministers must sit down with us and discuss our proposals so we can move forward together in order to protect British farming, British family-run farm businesses and British food.”
CEO of Family Business UK Neil Davy said: “Against a backdrop of huge uncertainty in global geopolitics and UK economic growth, these latest data show unequivocally the damage that is already being done to Britain’s family-owned businesses and farms, and the wider economy.
“Ultimately, it will be the working people, and communities right across the country, who depend on family-owned businesses and farms who’ll pay the price.”
Mr Davy reiterated his calls for the government to consult on the changes.
