Farmers are set to return to Westminster tomorrow (16 December) as the Finance Bill comes before MPs for its second reading, renewing pressure on the government over proposed changes to inheritance tax reliefs for agriculture.
The Finance Bill (No 2) contains legislation to introduce the so-called “family farm tax”, including reforms to inheritance tax (IHT), agricultural property relief (APR) and business property relief (BPR).
The second reading focuses on the overall principles of the Bill rather than its detail.
See also: Farmers take festive tractors to London protest
MPs cannot amend the Bill’s text at second reading – instead they vote on whether it should proceed to the next stage of its passage. Detailed scrutiny comes later, during committee and report stages.
One farmer who plans to attend the rally told Farmers Weekly that visibility at this stage was crucial. “This is a critical moment before the Bill moves into committee stage, where the detail is scrutinised and key decisions are shaped,” he said.
“That’s why being visible in London on the 16th matters: it sets the tone going into committee stage, it lets MPs know we are still here, still fighting, and not giving up, and it keeps IHT, APR and BPR firmly on the agenda before the Christmas recess.”
Farmers will gather from 10am in Parliament Square, with organisers encouraging attendance on foot with banners. The debate begins at 11.30am.
Following the Autumn Budget, several Labour MPs, mainly in rural constituencies, raised concerns about the effects of the tax reforms on family farms.
NFU lobbying
Meanwhile, The NFU has briefed MPs ahead of the debate and is urging them to continue highlighting those concerns, although it does not expect a further parliamentary rebellion at this stage.
Alongside the protests, the Tenant Farmers Association (TFA) continues to warn that the proposals could have serious unintended consequences for the tenanted sector, which accounts for around 30% of farmland in England and Wales.
It fears landlords may respond by shortening leases, withdrawing land from the rental market,d or cutting investment.
Although the government has confirmed the new £1m APR/BPR threshold will be transferable between spouses and civil partners, farming groups argue this does not go far enough.
With Parliament rising for Christmas on Thursday (19 December), farmers say the window to influence the Bill before detailed scrutiny begins in the New Year is rapidly narrowing.