THE climbdown over inheritance tax increases for farmers has been welcomed by Cheshire MPs on both sides of the political divide.
On Tuesday, December 23, the government confirmed the threshold for Agricultural Property Relief (APR) and Business Property Relief (BPR) will increase from £1 million to £2.5 million when reforms are introduced in April 2026.
The threshold rises to £5 million if a spouse, rather than a child or someone else, is inheriting the assets.
The largest farming estates will still pay some inheritance tax, but around 85 per cent of those claiming Agricultural Property Relief in 2026–27 are now expected not to pay any more.
Also, the total the number of farming estates affected by the reforms has also more than halved.
Labour MP for Mid Cheshire, Andrew Cooper, said farmers had been clear about the potential impact of the original proposals, and their views were ‘now reflected in the government’s approach’.
Meanwhile, Conservative MP for Tatton, Esther McVey, called the original tax rise policy ‘a disaster’, accusing the government of having an ‘anti-farmer and anti-rural’ agenda.
Concerns were raised by farmers in Mid Cheshire which were taken directly to ministers following meetings held locally and in Westminster.
Legislation to implement the changes is currently progressing through parliament as part of the Finance Bill, which will come into effect from April 2026.
Mr Cooper said: “Farmers in Mid Cheshire were clear about the impact the original proposals could have on family farms and businesses.
“Those concerns were taken directly into government, and Labour has listened.
“The changes announced will significantly reduce the number of farms affected, while keeping a fair and balanced inheritance tax system.”
Government forecasts show the impact of the reforms has now been substantially reduced.
The reforms also include making any unused allowance transferable between spouses and civil partners, supporting widows and widowers, including those whose spouse died many years ago.
Andrew added: “This is a good example of how listening to people locally and engaging constructively can lead to meaningful change.
“I will continue to work with farmers across Mid Cheshire to ensure their voices are heard and reflected in policy decisions.”
Responding to the announcement, Tatton’s Conservative MP, Esther McVey, said: “I am pleased the government has finally acknowledged, after months and months of campaigning, this policy is a disaster.
“But it seems the only thing now getting in the way of scrapping it altogether is pride.
“This change will help smaller farmers who after a huge amount of unnecessary worry and distress will now be able to breathe a sigh of relief.
"But it doesn’t go far enough to help those with larger farms who still face an uncertain future because of this government's anti-farming, anti-rural agenda.”
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