Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact that the change to agricultural property relief will have on (1) investment in new technology for existing farming businesses, (2) food supply to the market should existing farmers leave the sector, and (3) encouraging new entrants and young farmers to start farming.

The Government published information about the reforms to agricultural property relief and business property relief at www.gov.uk/government/publications/agricultural-property-relief-and-business-property-relief-reforms.

Additionally, the Chancellor wrote to the Treasury Select Committee on 15 November 2024, setting out further detail regarding the distribution of claims at death for agricultural property relief. This letter has been published at https://committees.parliament.uk/publications/45691/documents/226235/default/.

It is expected that up to up to 520 estates claiming agricultural property relief will be affected by these reforms. Almost three quarters of estates claiming agricultural property relief (or those claiming agricultural property relief and business property relief together) are expected to be unaffected.

In accordance with standard practice, a tax information and impact note will be published alongside the draft legislation before the relevant Finance Bill.

Through the Farming Innovation Programme the Government has committed over £127 million towards research and development funding to farmers, growers and foresters who want to develop and use new, innovative methods and technologies. The Government is also supporting farmers in adopting new productivity improving technologies directly on their farms through the Farming Investment Fund. Since 2021, Defra has paid over £99 million in grant funding to farmers to buy and install modern equipment.