Council reaffirms support for local farmers amid inheritance tax reform as hopes grow for policy rethink

Council leader Councillor Mike Evemy wrote to Chancellor Rachel Reeves in August, voicing concerns over the initial proposal to introduce a 20 per cent tax on estates valued over £1 million. The plan sparked widespread concern across the farming community, with fears that smaller, family-run farms could be forced to sell or fragment. 

In his letter, Cllr Evemy warned the proposed changes risked being catastrophic for farms in the region, where 90% of land is used for agriculture. He urged the Government to adopt pragmatic, farmer-based alternatives. This followed the recommendations of investigations by the council’s cross-party Overview and Scrutiny Committee. 

The council has now received a formal response from the Treasury. Writing on behalf of the Chancellor, Exchequer Secretary Daniel Tomlinson acknowledged the concerns raised and reiterated the Government’s support for farmers but confirmed that changes to inheritance tax rules were still scheduled for April 2026. 

“I understand that people feel strongly about inheritance tax, and that some people worry they may be affected by the decision to reform these reliefs from April 2026.” he said. 

“However, this decision was not taken lightly, and the Government believes its reforms get the balance right between supporting farms and businesses, and fixing the public finances in a fair way.” 

Despite this, recent media reports suggest the Government may be reconsidering the proposed threshold, with speculation that it could rise from £1 million to £5 million (or £10 million for married couples). Such a move would be particularly welcome in areas like the Cotswolds with high land values.  

Cllr Mike Evemy, said:  

“If the rumours of a change in direction are true, this could be positive news for farming families. It would help secure their futures and allow them to pass on their land and businesses without the burden of crippling tax bills. 

“We welcome the Government’s intention to strike a fair balance, but even modest increases in tax liability can place significant pressure on family-run farms - especially in regions like ours where land values are high but incomes are not. 

“Whatever happens, we will keep standing up for our farmers – they are a vital and much valued part of our local communities and they deserve our support."

Cllr Angus Jenkinson, ward member for Moreton East, who took part in the Overview and Scrutiny Committee investigation, added: 

“A rethink of the policy would be a very good thing. I remain deeply concerned about the impact these reforms could have on the Cotswolds and hope the Government takes into account the unintended consequences and other options we outlined in our letter.” 

The council is urging the Government to continue engaging with rural communities and remain open to reviewing the real-world effects of any changes to inheritance tax policy.