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      By Matthew TiltJuly 9, 2025
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    Pressure builds to reverse inheritance tax plans

    Matthew TiltBy Matthew TiltJune 30, 20252 Mins Read
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    Following the announcement of a partial U-turn over welfare cuts by the Labour government, there are fresh calls for it to abandon planned changes to inheritance tax.

    The Country Land and Business Association (CLA) has led this call, following a recent survey which found that cutting inheritance tax relief for farmers would negatively impact the Treasury’s revenue.

    It found that more than 200,000 jobs could be lost during this Parliament, producing a net loss of £1.9bn for the Treasury and cutting £14.9bn from the economy.

    Jonathan Roberts, CLA external affairs director, has said: “Rachel Reeves is going to have to find billions of pounds to fund the government’s U-turns on welfare reform. We have an easy solution to help her find the cash – stop attacking family farms and businesses.

    “As things stand, the government’s inheritance tax reforms will reduce tax revenue by £1.9bn and see 200,000 jobs lost. It is a policy she simply cannot afford to implement.”

    Now the Prime Minister is facing a rebellion from more than 40 MPs, according to national media, with Labour MP Sam Rushworth reportedly keen to bring forward different recommendations.

    A ‘rural growth group’ is also calling for the government to revise the threshold at which tax would be due.

    CLA President Victoria Vyvyan said: “Sam Rushworth MP confirms what we already know: many Labour MPs know the government’s farming tax raid is wrong. They see what it’s doing to small businesses – costing jobs, draining investment, and weakening local economies.

    “Raising the threshold is a small fix, but it won’t touch the real damage. Family businesses – including farms – will still be hit hard, with no way to plan for the future.

    “The CLA clawback proposal is fair, responsible, and targeted. It raises revenue, and protects multi-generational businesses. It also gives this vital industry the breathing room to survive, grow, and keep people in work.”

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    Matthew Tilt
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    Machinery editor for Farm Contractor & Large Scale Farmer. Matt has worked as an agricultural machinery journalist for five years, following time spent in his family’s Worcestershire contracting business. When he’s not driving or writing about the latest farm equipment, he can be found in his local cinema, or with his headphones in, reading a good book.

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