CLA 2025 Rural Business Conference

New CLA President Gavin Lane has told a packed auditorium at the 2025 CLA Rural Business Conference that he fears the government has a ‘fundamental misunderstanding of how family businesses work’ as he raised continued concerns over planned changes to inheritance tax.

In his maiden speech as CLA President, and with Defra Secretary of State Emma Reynolds and Farming Minister Dame Angela Eagle in the audience, Gavin said:

“Whether through ideology, inexperience, or a fundamental misunderstanding of how family businesses work, this government is treating intergenerational asset transfer as a problem to be solved rather than the foundation of sustainable, long-term investment.”

Gavin added: “They've absorbed economic theories about wealth inequality without grasping that breaking up family businesses could destroy the very stability we need to solve national challenges.”

With more than 500 farmers, landowners and rural businesses in the auditorium, Gavin said the current political climate was holding back much needed investment.

“The central contradiction any government cannot escape is that they need you to invest. They need you to grow. They need the solutions that only long-term, well-managed family businesses can provide.

“But their current position demands they strip you of the very thing - intergenerational stability - that makes that investment possible. You cannot ask people to pay to plant an orchard they'll never see grow, then tell them their children aren’t allowed to pick the fruit.”

Against a backdrop of uncertainty following the sudden closure of the Sustainable Farming Incentive (SFI) Gavin highlighted how CLA members have delivered for nature for over 30 years through publicly funded environmental schemes. “Surely they have proved they should be trusted partners with government continuing to shape and design the greatest nature recovery schemes in Europe.”

In a wide-ranging speech, Gavin raised concerns about water supplies and management, saying: “We urgently need our members to build on-farm reservoirs. I simply don’t believe that the government has woken up to the impending crisis of water demand in this country.

“We need irrigation reservoirs to defend our fruit and vegetable sector and as responsible global citizens, we should be removing the pressure from those countries we currently import from. We need natural flood management, working with landowners and drainage boards who know the land.”

On health, he stated how CLA members can help with the move away from ultra-processed foods towards nutritionally dense diets. And he raised the important role of rural businesses in providing renewable energy solutions, rural housing and employment.

Gavin said it is important to celebrate the pivotal work of rural businesses: “When your businesses thrive, your communities thrive - not through trickle-down theory, but through integrated, grassroots economics. Jobs created. Services maintained. Landscapes managed. Food produced. Nature restored. Infrastructure supported.

“You employ locally. You spend locally. You solve problems locally. Your successes and failures are shared with the people around you because you are those people.”

In closing, Gavin said he believed that working together was key to solving the issues facing the rural sector.

”This government, or any other government for that matter, needs to look beyond the dogma and ideology and see what private landowners and managers can achieve. It isn’t a fight worth having when working together provides long-term solutions and benefits to the whole of society.”

Following the CLA President’s speech, Defra Secretary of State Emma Reynolds took to the stage and recognised the importance of rural growth, stating her desire to work in partnership with all those in the rural economy.

“I know that the sector and the government haven’t always seen eye to eye and haven’t always agreed. But, today I want to focus on the future of how Defra will work in partnership with you and across government to address the unique challenges and opportunities that you face.

“This government sees the rural economy as absolutely fundamental to our growth mission. When rural Britain succeeds, the whole country succeeds.” she said.

“My vision is to grow the rural economy. A countryside with thriving businesses. Where good jobs are created. And communities flourish.”

On the Sustainable Farming Incentive (SFI), the Defra Secretary recognised that mistakes had been made with its sudden closure earlier this year. She stated that the issue was a top priority and that there would be greater communication going forward. Any future SFI would be “evolution not a revolution.”

The speech covered water security with the minister telling the audience she was working to “clarify planning practice for the permitted development right to support the creation of on-farm reservoirs and other vital infrastructure you need."

Recognising the work of food producers, Emma said: "I’ve seen how hard you work, whilst facing enormous pressures you have continued to feed the nation and produce food to some of the highest standards in the world."

She touched on rural crime, biosecurity, challenges around rural digital connectivity and affordable housing.

The Defra Secretary also discussed work to boost farming productivity alongside the Batters Review, due to be published before Christmas, including:

• Unlocking new markets for British produce with India, China and the USA.
• Tackling contractual unfairness in supply chains with 'Fair Dealings' regulations.
• Committing nearly £250 million in farming grants to improve productivity, trial new technologies and drive innovation in the sector.
• Appointing Alan Laidlaw as the new Commissioner for the Tenant Farming Sector.

Emma stated her desire to work with industry to help solve the issues rural businesses face. “I’ve discussed with the CLA the huge growth potential of rural businesses and I want to work in partnership with you to unlock that potential.”