RICS recognises the significant challenges facing the Government and the need for a difficult financial balancing act. 

RICS welcomes the continued commitment to major infrastructure projects and skills across the country. The announcement of free training for all apprentices up to the age of 25 at SMEs will help young people to gain critical experience including in the built and natural environment sector. This should help expand the surveying pipeline. 

The government’s continued commitment to improving the business rates system is necessary, but meaningful and wholesale reform is still needed. Business rates must be reflective of a modern economy, and those that require physical assets should only pay a fair and proportionate share of the burden. 

Scrapping the Energy Company Obligation (ECO) scheme with no prospect of an alternative mechanism has the potential to hamper the country’s ambition to tackle the UK’s retrofit burden. We must catalyse a market for retrofitting our existing homes to meet net emissions targets and create the high-paying jobs of the future.    

Recent RICS research* highlights the potential risk of the application of National Insurance at a rate of 2% to landlord income. The findings indicate that these tax changes could encourage landlords to reconsider their investment in the market. This could have a knock-on effect of increased costs to tenants.  

As the industry leader in valuation, RICS will ensure that surveyors’ expertise supports the fair implementation of the High Value Council Tax Surcharge. 

RICS Chief Executive, Justin Young, said: “The Government faces many challenges, and RICS recognises the difficult balancing act it must play. There are positive moves, such as new support for apprentices under the age of 25, which should hopefully expand the pipeline of new talent into the surveying profession. It is encouraging that the Government is prioritising necessary reforms to the business rates system, and we are committed to supporting this effort through our members’ expertise. 

“Whilst these changes are welcome, there are several measures which may weaken the housing market, such as raising tax on dividends, property, and savings income by 2%. Furthermore, it seems that commitments to sustainability are weakening. RICS is working with the Government to mitigate these effects and help it deliver its objectives.”

Reaction to the Budget from Carter Jonas

Carter Jonas Head of Estate Management, Mark Charter, said: "There is little in this budget to fundamentally change the outlook of farm and estate owners, with the major changes to inheritance tax (IHT) announced a little over a year ago. But we do expect it to act as a catalyst for action for those who need to address succession issues and tax planning. 

"IHT changes seem to be going ahead as planned next April, the only change being a £1m threshold on assets that can be transferred to a spouse upon death. Businesses and families who haven't discussed the future of their assets need to take advice and make decisions quickly.

"The 2% increase in tax on rental income – which will affect rural landlords – is another blow for the rental market. We are already anticipating a rise in costs due to compliance with Minimum Energy Efficiency Standards (MEES). Plus, there is increased risk from the Renters Reform Act which is hitting confidence in the sector. While the rise seems small, it will further erode the profitability on farms and estates where let property is an income stream.  

"An annual levy on residential properties with a value exceeding £2m will catch some farmhouses and family homes on estates. Questions remain over how properties will be valued, and how the tax will be implemented. 

"Diversified businesses running retail, hospitality and leisure operations will view the lower business rate multiplier as a positive move. It is a small step, but is a financial gain for those who have diversified because other farming enterprises were not sufficiently profitable." 

Comment from Strutt & Parker on the Budget

Despite strong lobbying for amendments to the planned inheritance tax (IHT) changes, the Chancellor has decided to press ahead with her reforms. From 6 April 2026 only the first £1m of qualifying property will continue to attract 100% APR or BPR and a 50% rate of relief will apply thereafter – equating to an effective tax rate of 20%.

Nick Watson, Head of Private Client at Strutt & Parker, says: "Farmer confidence is at historically low levels and there will be widespread dismay, although perhaps not surprise, that the Government has chosen to stick to a policy which has generated significant concern over the past 12 months. Farm and estate businesses must use the next few months wisely, working with valuers, legal advisors and accountants to make changes to their tax and succession plans which reduce this increased liability, without tying their hands for the future.

"However, if there is some good news, it is that the £1m relief for IHT will be reformed to allow the transfer of an unused allowance between spouses – this is a welcome simplification. The rules on lifetime gifting – known as Potentially Exempt Transfers (PETs) – and on CGT Holdover Relief, also remain unchanged, despite rumours to the contrary. This will be welcome as lifetime gifting is a valuable tool when tax and succession planning, alongside measures such as restructuring businesses or trusts, reviewing insurance options, or taking advantage of reliefs such as the Conditional Exemption Tax Incentive.

"Our message to farmers and landowners is that there is still time to act and there are options open to you. However, professional advice is essential, as every business is different and it is important not to take decisions today that could prove to have negative consequences in the future."