Agricultural Property Relief and Business Property Relief

Tim Farron Excerpts

Monday 5th January 2026 Commons Chamber

[Dan Tomlinson]

I thank my hon. Friend for her contribution, for the experience and expertise that she brings to the House as Chair of the Select Committee, and for the important work that she has done on this and other issues. The changes that we have made to this policy mean that it is now fair and balanced, and protects more farms. As I have said, the number of estates expected to pay more tax will halve. We Labour Members and the Government can hopefully continue to focus on what we can do to support our farming and rural communities—for example, on the £11.8 billion of investment that we are putting in over the course of this Parliament.

[Tim Farron (Westmorland and Lonsdale) (LD)]

Our farming and rural communities in Cumbria and right across Britain should be utterly proud of themselves, because this U-turn is their victory, and I pay tribute to them. However, the appalling emotional and economic damage done to farmers over the last 14 months has been cruel and will have a lasting impact. Will the Minister apologise to the farming community for the last 14 months, and recognise that many hill farms in Cumbria will still be hit by this tax, because they are worth more than £2.5 million, although their average income is less than the minimum wage? Does this tax not remain an attack on British farming and on food security?

[Dan Tomlinson]

If the Government had not made these changes in December, Opposition Members would have been standing here asking us to make those changes. We are coming forward with a revised position—we are increasing the threshold from £1 million to £2.5 million—and Members are criticising us for that change. We think it is the right thing to do, and we are doing it in good time—before the Finance (No.2) Bill, in which these changes will be made, is voted into law later this year.

Yes, some estates—the very largest—will continue to pay more after these changes, but it is worth bearing in mind that, relative to the position of a few months ago, estates worth £2.5 million will now pay significantly less; there is a £300,000 reduction in their tax liability. For an estate worth £5 million, it is a £600,000 reduction. These are significant reductions in the amount of tax that the very largest estates will have to pay, but we do think that it is right and fair to continue with a reform that strikes the right balance between the need to raise more revenue and the need to protect smaller family farms.