The CLA (Country Land and Business Association) has commented on the Chancellor’s budget announcement today.
The CLA has been lobbying extensively against the UK Government’s inheritance tax reforms since they were first announced by Rachel Reeves in last year’s Autumn Budget as it seriously risks undermining the future of family farming across the entire country.
Whilst the CLA continues to fight this deeply damaging policy in full, it has been working with Treasury and Defra officials in the run up to the Budget to explore what concessions Government might be willing to make.
In her 2025 Budget, Rachel Reeves announced that the £1m allowance before inheritance tax is to be paid can now be transferred between spouses, effectively doubling the allowance for married couples.
CLA President Gavin Lane said: “This concession is the first public signal that the Chancellor knows her inheritance tax reforms have been a disaster.”
“Across the country, family businesses have been reducing their investment, at an enormous cost to the economy and the British public. It is not too late for her to scrap the entire policy, and finally recognise the enormous value family owned businesses bring to the UK.”
“The Chancellor said this was a Budget for sustainable long term growth. But it is difficult to understand what measures contained within it were designed for that purpose. Government policy continues to disincentivise investment and the country is paying the price.”
CLA External Affairs Director Jonathan Roberts said: “Our lobbying of the Treasury went to the wire ahead of the 2025 Budget. In doing so we have helped to secure a concession on Government’s dreadful inheritance tax reforms, with the £1m allowance now being transferable between spouses.
“For some farmers and family business owners it is a huge step forward, for some a very small one, for others it’s no help at all – especially as around 40% of farmers are single, divorced or widowed.
“It is the first public recognition from the Treasury that reforms to Agricultural and Business Property Reliefs have been a disaster. Farms and rural businesses have been pulling investment – and everyone in the country has paid the price, with fewer jobs, less economic activity and less tax revenue paid to the Exchequer.”
“This concession is a start, but we will continue to chip away at APR/BPR reforms until they are reversed.”
