The NFU has commented on a report by Family Businesses UK (FBUK) that looked at the effects of inheritance tax (IHT) changes announced at the Autumn Budget.
FBUK commissioned independent consultants at CBI Economics to review the changes to agricultural and business property relief announced in the Budget in 2024.
It estimates the changes could cost the Treasury £1.9bn by 2030 and that 60% of farm businesses are planning to reduce investment by over a fifth.
The research 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.
Commenting on the new report, NFU president Tom Bradshaw said: “FBUK’s report shows only too clearly the catastrophic effects on family farming businesses across the UK of this government’s punitive family farm tax. This report must serve as a wake-up call to the Treasury, or we face major cuts to investment and significant job losses.
“FBUK is the latest in a long line of respected organisations and bodies to call out this tax for what it is – flawed, badly thought-out and destructive.
“We want to be a constructive partner. We understand only too well the fiscal pressures and objectives that need to be met.
“We urge the Treasury to review our offered solution in the form of a clawback policy, where the full 40% tax would be paid when inherited assets are sold.
“It is not too late for Treasury ministers to listen, to do the right thing and change direction, for the sake of farming and the wider economy. Acting now would also remove the abhorrent untold human impacts which we have warned about and are tragically starting to come to light.”