Pressure mounts on Burnham for Budget farm tax U-turn

Pressure is mounting on prime minister Andy Burnham to rethink Labour’s farm inheritance tax changes, with Conservatives and countryside campaigners demanding a U-turn in the autumn Budget.

The renewed plea comes as the Country Land and Business Association (CLA) says some Labour backbenchers are beginning to see the impact of the policy on farms and rural businesses.

The Countryside Alliance is also ramping up its campaign, with rural and farming representatives set to gather at Westminster on 14 September to call for a “reset” in the government’s relationship with the countryside.

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Jonathan Roberts, CLA director of external affairs, said there had been “further movement” among Labour backbenchers over the past eight months as the impact of the tax became clearer.

“They’re seeing the knock-on impact it’s having in investment through their local economy, where machinery dealers have been going under left, right and centre,” he told Farmers Weekly.

U-turn hopes ‘50/50’

Asked to rate the chances of a policy U-turn, Mr Roberts was now 50/50 compared with zero six months ago.

“I wouldn’t say I’m optimistic, but I think there’s a chance that they might do that,” he said.

“Andy Burnham seems to be making overtures to the farming sector, but he’s got to prove he’s got more than just a good soundbite.”

More than 100 Conservative MPs, MSPs, Senedd members and councillors have written to the prime minister calling for a full reversal of agricultural and business property relief (APR and BPR) changes in the 28 October Budget.

The letter, led by shadow Defra secretary Victoria Atkins and Scottish Conservative MP Harriet Cross, claims more than 6,300 agricultural businesses ceased trading between July 2024 and July 2025.

It cites CBI Investment research suggesting 55% of BPR-affected businesses and 49% of APR-affected businesses have paused or cancelled planned investment.

More than three in five affected businesses expect to cut investment by more than 20%, while almost one in four family farms and businesses have reduced headcount.

Ms Atkins said the policy could put food security at risk and lead to higher prices, while Ms Cross said Labour had left farmers’ futures “more uncertain than ever”.

NFU lobbying

NFU president Tom Bradshaw said: “We’ve been clear that we oppose the changes to inheritance tax on farming, which treat business assets as personal wealth.

“While concessions have been made, some family farms still face substantial tax bills.

“This is stifling investment and could break up food producing businesses at a time of global instability and climate pressures.”

He added: “We raised this issue at the highest level when we met with prime minister Andy Burnham on farm last month and will continue to do so.

“It is right that any new prime minister considers this issue carefully and decides whether this tax is the right approach.”

Countryside Alliance chief executive Tim Bonner added: “A new prime minister provides an opportunity for government to reset its relationship with rural Britain and recognise the contribution the countryside can make to the whole country.”