Responding to the autumn budget delivered by Chancellor Rachel Reeves, Ulster Farmers’ Union (UFU) president William Irvine expressed deep concern. He warned that the budget jeopardised farm family livelihoods, food security, and the future of Northern Ireland’s biggest industry. “This budget is a blow to our agriculture sector. The Chancellor has failed to grasp the essential role our farming community plays in the UK’s food security, rural economy, and environmental stewardship,” said Mr Irvine.
Last week, the presidents of the four UK farming unions wrote to the Chancellor, urging the government to maintain Inheritance Tax Reliefs for farm businesses. Disregarding this advice, the budget introduces new thresholds for Inheritance Tax and Agricultural Property Relief (APR). This imposes a substantial tax burden on everyday family farms with assets above £1 million. “It is extremely disappointing the government chose to ignore the message from all of the UK’s farming unions. These changes to APR compromise the liquidity needed for succession planning on farms of all sizes, eroding the very foundation of our agricultural sector.”
The UFU is concerned these changes will create a barrier for new generations to enter farming and force many farmers to delay or even abandon reinvestment in their businesses. “These adjustments may provide some marginal financial benefits to the Treasury, but they come at a huge cost to farming families and the rural economy. Opportunities for new entrants and growth will be diminished,” added Mr Irvine.
The UFU is also disappointed by the lack of clarity surrounding the agricultural budget, despite the sector’s ongoing needs and repeated calls for stable funding. In a recent letter to the Prime Minister, the UFU emphasised the importance of securing an increased, multi-annual agriculture budget to support Northern Ireland’s agricultural sector. Currently, the UK’s agricultural funding pot remains stagnant, failing to account for inflation or meet the strategic goals of ensuring food security, promoting farm efficiency, and supporting environmental objectives.
“This budget threatens the resilience of our family farms, which are the cornerstone of agriculture and food processing here. Promises on APR have been broken, shattering trust and signalling an alarming disconnect between policymakers and the realities facing farmers. Family farms are vital assets, but that does not make those who work them wealthy. Without government action to address these changes, we risk undermining our nation’s food security and compromising the government’s vision for rural growth and prosperity,” said the UFU president.
The UFU has urged the Chancellor to revisit these measures and engage in meaningful dialogue with farming unions to protect the future of agriculture and rural communities.