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IHT reversal priority in UFU pre-Budget submission

UFU extends vote of no confidence and calls for resignations

The Ulster Farmers’ Union (UFU) has submitted its pre-Budget submission to HM Treasury, urging the Government to deliver ‘A Budget to Back Farming’, arguing that it can do so through a practical package of measures that will restore confidence, support investment and safeguard the future of Northern Ireland’s family farms.

UFU president John McLenaghan said, “The Government has a real opportunity to reset its relationship with agriculture at the Budget and demonstrate that it values protecting local food production, rural economies and understands the unique structure of family farms here in NI.

“Farm businesses are ready to modernise, improve productivity and invest in the future, but rising costs, tax changes and increasing regulatory pressures are making it more difficult for them to do so. Farmers need certainty and confidence if they are to continue investing in their businesses and delivering for the wider economy.

“We are calling on Government to back farming. In turn, farmers can continue to deliver growth, jobs, food security and environmental benefits across Northern Ireland and the wider UK, in line with the Government’s stated ambition of ‘growth in every postcode’.”

A central element of the UFU’s submission is a call for the restoration of full Agricultural Property Relief (APR) and Business Property Relief (BPR) for qualifying assets, following the changes in April 2026.

“Overturning the changes to inheritance tax remains a significant priority within our economic asks. The reforms risk undermining the very investment and confidence the Government says it wants to encourage, and the new Government has a unique chance to recognise this and act at pace,” continued Mr McLenaghan.

The submission also calls on the Government to retain the temporary cut to rebated diesel fuel duty, suspend the Carbon Border Adjustment Mechanism (CBAM) and assess its impact on agriculture, strengthen protections through the tax system for farm families facing compulsory purchase of land, encourage investment through improvements to the Annual Investment Allowance and Structures and Buildings Allowance, and provide greater certainty for businesses seeking to modernise and improve productivity.

“A strong and resilient agriculture sector is essential for food security, economic growth and vibrant rural communities. Government policy and budgets must reflect that reality,” added Mr McLenaghan.

“That is the message the UFU will be taking its message directly to policymakers over the coming weeks, engaging with MPs, Peers and political representatives at all major party conferences, including the Labour Party Conference. The Union will also raise the issues with the Secretary of State and continue its lobbying efforts in Westminster on behalf of Northern Ireland’s farming community.”

In addition, the UFU is calling for Northern Ireland’s agriculture budget to be index-linked and uprated, considering its value has fallen by around one-third in real terms since 2020.The Union is also supporting calls from Northern Ireland’s political parties for a fully negotiated fiscal framework for Northern Ireland.