Farm inheritance tax battle not over, say NFUS chiefs

NFU Scotland leaders have vowed they “will not give up the fight” to stop damaging changes to farm inheritance tax, warning the UK government’s proposed reforms pose a direct threat to the future of family farms across the country.

Speaking at a media briefing at the Royal Highland Show on Thursday, NFU Scotland (NFUS) president Andrew Connon said the removal of agricultural and business property relief – due to take effect in April 2026 – is the most emotionally charged issue he has faced in his time with the union.

See also: Delay farm tax raid or risk rural ruin, MPs warn Labour

“It is so fundamentally important to our membership,” he said. “It’s the most emotive thing I have come across in my period at the union. We will not give up the fight and the challenge.”

Mr Connon was critical of the UK Treasury’s handling of the policy, accusing it of bypassing proper scrutiny.

“The Treasury did not do an impact assessment – and that is unpalatable,” he said. “Why would you launch a profitability review led by Minette Batters and before that bring in a draconian, industry-threatening legislation?”

He pointed to the May report from the House of Commons Environment, Food and Rural Affairs (Efra) Committee – which called on the UK government to pause and reconsider the changes – as a sign of growing political support for farmers’ concerns.

“Efra have again suggested we need to have a pause to bring common sense into it,” he said.

NFUS policy director Jonnie Hall said the Efra committee’s stance was a “marker in the sand”, not least because seven of its eleven members are Labour MPs.

“This is not just about farmers and landowners,” Mr Hall said. “It’s about politicians – a majority Labour committee – calling for a rethink and a proper understanding of the implications.”

Mr Hall stressed the campaign is far from over. “This is not a done deal yet. The Finance Bill process in the autumn is another opportunity to influence MPs and policymakers.”

Gougeon shock

Speaking to reporters at the show, Scottish rural affairs secretary Mairi Gougeon also criticised the plans, saying: “Everybody was shocked when we saw the announcements that came out of the Budget.

“The UK government has U-turned on other damaging decisions – but they are still sticking to this inheritance tax policy.”

NFUS confirmed it is working closely with other UK farming unions to co-ordinate next steps ahead of the government’s formal response due by 16 July.