The CLA View

At the CLA it is one of our busiest times of the year as we attend a series of summer agricultural shows across our region. Over the next few weeks we will be at the Lincolnshire Show, Royal Norfolk Show and Groundswell, and we have already attended the Essex Young Farmers Show, Suffolk Show and Cereals. They are all important dates in our calendar to celebrate the vital work of the farming community and wider rural businesses.

It is an opportunity to spend time with our members, and for those who live and work in rural industries to catch up with friends, family and colleagues in an informal setting.

Much of the talk at the shows so far has been, as you would expect, about the proposed changes to agricultural property relief (APR) and business property relief (BPR), as well as the closure of the Sustainable Farming Incentive (SFI).

We have spent time speaking with politicians, the media and other industry stakeholders about our members’ concerns. To her credit, Labour MP for Suffolk Coastal, Jenny Riddell-Carpenter, spoke at the CLA’s political Breakfast at the Suffolk Show, knowing that she was likely to face some hostile questioning. Jenny is a member of the Environment, Food and Rural Affairs (EFRA) Select Committee and it was refreshing to see that she was happy to engage with farmers and hear their concerns. The same cannot be said for all politicians.

The CLA has said all along that the government must work with us and have an open dialogue when it comes to changes that will have an impact on rural businesses. Agricultural shows are the perfect opportunity for ministers to develop relationships and build trust, but also to learn about what is actually happening on the ground. Whilst we welcome behind the scenes meetings, they can't replace engagement with farmers, land managers and rural business owners.

From April 2026 the government is proposing to cap vital inheritance tax reliefs for family businesses. The CLA and other industry bodies have proposed an alternative ‘clawback’ mechanism which would retain 100% agricultural and business property reliefs (APR and BPR), but inheritance tax would be applied to assets if sold within a certain time period post-death, payable out of the proceeds of sale.

It would mean those who continue to farm would not be hit with crippling tax bills, and those who decide to sell would have the cash in the bank and be able to pay. The government is refusing to provide evidence to back up a Minister’s claim that the clawback alternative to its inheritance tax changes would raise ‘much less’ revenue than the current reforms.

Exchequer Secretary to the Treasury James Murray has repeatedly talked down the clawback mechanism. The CLA lodged Freedom of Information requests asking for the evidence behind these statements to be published, but the government is claiming it is not in the public interest to do.

The CLA and a dozen other industry bodies from across the British economy have now written to the Chancellor, urging her to rethink the decision and publish the evidence.

In difficult times like this, events such as the agricultural shows are more important than ever. An opportunity to unite and celebrate everything that is being achieved by farming and rural businesses despite the great uncertainty that remains.