Family Business UK has given a cautious welcome to the Government’s review of farming profitability – conducted by the former NFU President, Baroness Minette Batters.
The review, which was commissioned earlier in 2025, makes 57 recommendations to government. For family-owned farms and businesses the core issue of changes to inheritance tax fell outside the scope of the review. Nevertheless, nearly every respondent cited the changes to IHT as the single biggest issue they faced causing concern about what may lie ahead.
Commenting on the report, Neil Davy, CEO FBUK said:
Like all companies, family-owned farms and businesses need confidence to invest and grow not just for today but for years, even decades into the future. But, the changes to inheritance tax have sapped the confidence of owners leaving many to question how they will plan for an uncertain future?
So, whilst we welcome the report by Lady Batters it is a missed opportunity, by government, to hear the genuine concerns of the millions of family farm and family business owners whose long-term prospects and long-term profitability are significantly impaired by changes to inheritance tax.
Our research remains the only impact assessment of this policy change – highlighting the economic and fiscal impact that are likely to result not just within the businesses and farms but across their supply chains and amongst the people whose livelihoods they support – 208,000 job losses, £15 billion less economic activity and a net tax loss to government of £1.9 billion.
Economic growth and robust food security are vital to this country. But this single policy change undermines both. Family Business UK and our Members remain open and keen to engage with government on amendments which can deliver these objectives whilst also protecting the millions of family-owned businesses and farms across the UK and give them back their confidence to invest for the future.