Farming News - Labour at risk of fundamental misunderstanding of agriculture in Britain, says NSA

Labour at risk of fundamental misunderstanding of agriculture in Britain, says NSA

The National Sheep Association (NSA) is disappointed by Defra Secretary of State, Steve Reed’s comments, as he has doubled down on the Chancellor’s announcement last week that threaten increased tax burdens on UK farming families.

 

NSA Chief Executive Phil Stocker says: “The contentious nature of Mr Reed’s recent comments in the farming press have come at a time when the industry needs a government minister in its corner following years of upheaval and financial strain. UK farmers have encountered unprecedented financial challenges over the past five years. These pressures stem from a combination of economic, environmental, and regulatory changes, each contributing to the overall strain on farm incomes and the mental well-being of those working in agriculture.

“It is unfortunate for Defra that they now risk undermining industries real time concerns to try to push these changes through. Comments likening the agricultural industry to ‘any other industry’ shows an unfortunate lack of understanding as to the reality and importance of farming and food production in the UK.”

NSA considers the social fabric of rural Britain to be tightly interwoven with its agricultural base and believes disrupting this structure will affect local economies and community cohesion.

Mr Stocker continues: “Farms provide more than food and in our more fragile and remote areas they sustain local schools, businesses, and public services. Family farms often play a role in local events, and traditions, contributing to the rich tapestry of rural culture. Mr Reed’s comments fail to account for these socio-economic factors, which are central to the well-being of rural areas. We are failing in properly recognising and rewarding traditional farming for the public goods it delivers”

Mr Reed’s comments come after the announcement in the Autumn Budget that under the new provisions, from April 2026, the full 100% relief from inheritance tax will be restricted to the first £1 million of combined agricultural and business property.

Above this amount, landowners will pay inheritance tax at a reduced rate of 20%, rather than the standard 40%. This is on top of all the other spousal exemptions and nil-rate bands that people can access for inheritance tax too. This means that two people with farmland, depending on their circumstances, can pass on up to £3 million without paying any inheritance tax.

NSA Policy Manager Emma Owen says: “Steve Reed’s call to reconsider Agricultural Property Relief (APR) and IHT suggesting perceived inequalities overlooks the fundamental realities of agriculture in the UK. While it is essential to ensure that tax policies are fair and equitable, there must also be an acknowledgment of the unique characteristics of farming as a livelihood, an industry, and a heritage. Disrupting APR could damage the continuity of family farms, reduce sustainability efforts, and jeopardise rural communities."

“Rather than dismantling APR, Defra should focus on policies that address actual inequities without imposing untenable financial burdens on family farms. In an era where food security and environmental responsibility are more important than ever, it would be sensible to protect the policies that help ensure the survival and resilience of British agriculture.”