The UK government has confirmed that no further amendments will be made to the contentious farm inheritance tax plans, following a significant increase in the tax threshold from £1 million to £2.5 million. This decision comes after months of protests from the farming community, culminating in a dramatic demonstration at the Oxford Farming Conference, where Environment Secretary Emma Reynolds faced a horn-blowing tractor protest.

Background and Policy Changes

Initially announced in Chancellor Rachel Reeves's 2024 budget, the proposed tax aimed to levy a 20% charge on inherited agricultural assets exceeding £1 million. The policy was intended to curb the use of farmland as a tax loophole by wealthy investors while safeguarding smaller farms. However, the proposal met with fierce opposition from farmers and rural organizations, leading to a pre-Christmas revision that raised the threshold to £2.5 million.

Reactions from the Farming Community

Despite the government's concession, the revised policy has not fully appeased critics. The Country Land and Business Association (CLA) and the National Farmers' Union (NFU) have expressed continued dissatisfaction, with CLA President Gavin Lane describing the policy as "dreadful for the rural economy." NFU President Tom Bradshaw acknowledged the relief brought by the threshold increase but reiterated the union's opposition to the tax in principle.

Government's Stance and Future Plans

At the conference, Reynolds assured attendees of the government's commitment to collaboration with the agricultural sector. She highlighted the importance of farmers to the national economy and promised no abrupt closures of farming payment schemes, such as the Sustainable Farming Incentive (SFI). The SFI, which rewards environmentally friendly farming practices, is part of broader efforts to support rural economies.