Carla Lockhart welcomes reports PM could revisit farm inheritance tax reforms

Carla Lockhart MP

Sunday 27 September 2026

Prime Minister Andy Burnham is facing renewed pressure to revisit controversial inheritance tax changes affecting family farms, with DUP Agriculture spokesperson Carla Lockhart welcoming reports that the policy could be reconsidered ahead of the autumn Budget.

The Upper Bann MP said any move by the new Prime Minister to change the reforms introduced under his predecessor Sir Keir Starmer would be welcomed by farming families, including those in Northern Ireland.

Reports of a possible rethink have gathered pace in recent days. The Guardian reported on Saturday that a Budget U-turn had been reported as being under consideration, with government sources confirming that changes to inheritance tax were among the possibilities being examined. No decision has been announced.

Lockhart welcomes prospect of rethink

Ms Lockhart said:

“There seems to be growing speculation that the Prime Minister is looking again at Labour’s deeply damaging inheritance tax changes. Any move to reconsider or u-turn on the current policy, would certainly be significant and very welcome.

“Andy Burnham has over 100 Labour MPs representing rural communities across Great Britain. Those MPs will be hearing directly from farming families about the impact and concerns surrounding the changes introduced in April.

“Scrapping the current APR and BPR reforms, and restoring the Government’s historic relief arrangements, would be a significant step for family farming and everyone who fought and campaigned against the measures.”

The intervention comes amid continuing pressure on the Government from farming and rural organisations. More than 100 MPs have also backed a letter calling on Mr Burnham to reverse the changes at the autumn Budget.

How the inheritance tax rules changed

Changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) came into effect on 6 April 2026. Under the rules, 100% relief is available on up to £2.5 million of qualifying agricultural and business property, while qualifying assets above the available allowance receive 50% relief.

Unused allowance can be transferred from a deceased spouse or civil partner in qualifying circumstances, potentially increasing the available 100% relief allowance to £5 million. This sits alongside other inheritance tax allowances.

The £2.5 million figure represented an increase from the Government’s original proposal for a £1 million allowance. That change was announced in December 2025 following concerns raised by farmers and businesses.

Northern Ireland farm values highlighted

Ms Lockhart said increasing the current £2.5 million individual threshold to £5 million would represent a significant improvement for family farms, particularly in Northern Ireland.

She said:

“Our farms are not on the same sizeable scale as the majority of mainland holdings, but land values in Northern Ireland drive up the value of farm assets. Local farmers are predominately asset rich but cash poor, with the value of their working farm tied up in land, buildings and machinery rather than available as cash to meet a tax liability.

“Farmers should not be placed in a position where they have to consider selling productive land or dismantling a viable family business simply to meet inheritance tax commitments.”

Ms Lockhart added:

“The increase from the original £1 million proposal to £2.5 million was welcome, but it does not resolve the fundamental concerns surrounding the policy’s current format.

“These are working farms, not passive investments. They are businesses that produce food, employ people, support local economies and sustain rural communities, often having been built up over several generations.”

Government maintains significant relief remains

The Government has previously defended the revised arrangements, saying they are intended to raise revenue for public services while continuing to provide substantial inheritance tax relief for farms and businesses. Its December 2025 assessment forecast that around 85% of estates claiming Agricultural Property Relief in 2026/27 would pay no more inheritance tax as a result of the reforms.

In a parliamentary answer on 18 September, the Government reiterated that a couple can pass on up to £5 million of qualifying agricultural and business assets between them before the reduced rate of relief applies, in addition to existing allowances such as the nil-rate band.

However, farming organisations and political opponents have continued to argue that the changes could place additional financial pressure on family farms whose value is concentrated in land and other business assets.

Pressure ahead of autumn Budget

Ms Lockhart said the Prime Minister should use the forthcoming Budget to address those concerns.

“The Government needs to recognise that food security is national security. Encouraging investment, succession and continued food production should be at the heart of agricultural policy, rather than creating uncertainty for families trying to hand a viable farm on to the next generation.

“If there is substance to the circulating reports, the Prime Minister needs to make it clear that he has heard the concerns shared by thousands of farming families.

“Family farms have been built over decades. They are part of the fabric of our rural communities and a vital part of our domestic food supply.”

She concluded:

“The Government should be supporting the next generation to take on these farm enterprises and rural businesses, not creating additional barriers to succession.”

For now, the existing inheritance tax arrangements remain in force, and the Government has not confirmed that they will be changed. Any decision to alter the policy would therefore need to come through a further government announcement, with attention now focused on whether the Prime Minister and Chancellor use the autumn Budget to make another change to the regime.