Graham has welcomed the Government’s decision to reverse course on the family farm tax, saying it is a clear victory for farmers, rural communities, and the power of people speaking out together.
The Government announced, in one of its last acts of the year, that it would increase the threshold at which Inheritance Tax is payable for farms to £2.5 million, transferrable between married couples.
This applies not just to Agricultural Property Relief but also Business Property Relief, which had caused great concern to family businesses which would be subject to significant tax bills on the demise of company owners.
Graham has been at the forefront of the fight in Parliament against the tax as he has been working with farmers make the case that farmers, who feed the nation, should be rewarded rather than punished.
His petition, launched in November 2024, has attracted 2,974 signatures from not just farmers and rural dwellers but also from town-dwellers who are concerned for the future of the British countryside, food and farms.
As protests rumbled on in Beverley and Holderness, including just last week in Cherry Burton, Graham was raising the issue in debates in Parliament, asking questions and meeting farmers both in East Yorkshire and those who made the journey to London.
The tax, introduced by Chancellor Rachel Reeves’ Halloween Budget of 2024, would impose a 40% tax on all farm and business assets over £1 million. With land prices at historic highs, around £10,000 per acre, all but the smallest hobby farms would be forced into this tax, despite the Chancellor’s protestations.
For over a year, Labour ministers repeatedly defended the policy, despite growing concern from farmers, the National Farmers’ Union, and MPs across the country that it would cause serious harm to family farms. Farmers warned that the tax would push businesses to the brink, force closures, and place unbearable pressure on mental health in an already fragile sector.
Graham has consistently raised concerns about the impact of the family farm tax, warning that it would discourage investment, undermine food security, and risk driving family farms out of business altogether. He has worked closely with farmers and campaigners to ensure their voices were heard in Parliament and beyond.
Graham said the Government’s change of position shows just how wrong the policy was from the outset: “This tax caused huge distress to farmers and their families, so I’m delighted that the Prime Minister has finally seen sense and abandoned this pointless tax.
“I heard directly from people who were worried about losing farms that had been in their family for generations, and from others who were struggling with the mental health impact of the uncertainty and financial pressure,
“Labour ministers spent months defending this policy, telling farmers they were wrong to be worried. I really feel for them being hung out to dry attempting to defend the indefensible.
“Meanwhile, the NFU, ordinary farmers, millions of people across the country, and Conservative MPs were all saying the same thing. The Government had got it wrong.
“Furthermore, the policy would have barely raised a penny for the treasury, while causing untold harm to rural communities.
“The Government’s U-turn proves that community power matters. When farmers, rural communities, and supporters across the country stand together and refuse to be ignored, change happens.”
Details of Graham Stuart’s work opposing the family farm tax can be found at
www.grahamstuart.com/farmtax
