Harborough District Council to lobby government over concerns for farmers after controversial tax relief decision

There are widespread concerns farms could be faced with closure once the changes to APR come into force. Image: Richard Bell/ Unsplash

Harborough District Council has criticised government plans to scrap tax relief for farmers, which it says could severely impact farming and food security.

At a council meeting last week, a motion was given cross-party support to lobby the government over plans to place a £1million cap on Agricultural Property Relief (APR), designed to reduce inheritance tax paid when farmers transfer land to younger family members.

The reform was announced as part of the Autumn Budget in October, to balance the system and redirect money into public services.

Chancellor Rachel Reeves said small family farms would be protected, with three quarters of claims unaffected by these changes.

However, widespread belief that the changes – set to come into force in April 2026 – could severely damage UK farming and put food security at risk, has prompted protests and lobbying by unions and councils across the country.

According to Harborough District Council, if implemented, inheritance tax could ‘impact over 70,000 family farms, leaving the average farming family with a tax bill of at least £240,000, which will force many to sell portions of their land or close entirely, paving the way for corporate ownership over family ownership’.

The motion, proposed by Harborough District Council leader Phil Knowles and seconded by deputy leader Cllr Simon Galton, received cross party support.

Cllr Knowles will write to government to explain the potential impact of the changes on farming in the district and the wider effects across the nation.

He said: “We appreciate that the new government are like so many who come into post, having to check exactly what they have inherited. This including, of course, the financial pillars that by their very nature are set to underpin and strengthen the overall structure.

“The inheritance tax and potential changes are, it’s said, to impact on farmers. Harborough District is blessed with considerable numbers of farms - farms that deliver for the nation and not just the local economy.

“It’s important to ensure that change delivers for the good and impacts positively. We therefore call upon the government to revisit its decision and to consider the impacts on the economy both nationally and locally but also on the individuals involved.”