“A huge relief to many,” is how NFU president Tom Bradshaw summed up today’s shift on farm inheritance tax after more than a year of pressure from growers and graziers. Ministers have raised the point at which the new charge bites from £1m to £2.5m, easing fears across family farms from the Solway to the South Pennines. Bradshaw told broadcasters the change would greatly reduce the burden on ordinary farm businesses.

Defra confirmed the move in a press release issued on Tuesday 23 December, during Parliament’s Christmas recess. The department said the higher threshold will apply from 6 April 2026 and will be written into the Finance Bill in January. The policy retains 50% relief above the threshold and keeps the effective rate at up to 20% on qualifying assets.

Crucially for succession on family holdings, the allowance is transferable. Defra says spouses or civil partners will be able to pass on up to £5m in qualifying agricultural and business assets between them before any inheritance tax is due, on top of existing nil‑rate bands.

Officials say far fewer estates will now be caught. Government figures project that around 1,100 estates across the UK will pay more inheritance tax in 2026/27, down from roughly 2,000 under earlier plans. Defra also says about 85% of estates claiming Agricultural Property Relief (APR) are forecast to pay no more than before.

Northern readers will want the straight maths. Strutt & Parker data reported by Farmers Weekly puts average 2025 prices in Yorkshire & Humber around £10,400 per acre for arable and £8,500 for pasture, with top sales higher. Knight Frank’s index shows deals above £15,000 an acre are not unusual. Add livestock, kit and buildings and it’s easy to see how a 150–250 acre mixed farm can brush past seven figures, which is why today’s increase matters in our region.

Environment Secretary Emma Reynolds said ministers had “listened closely to farmers” and were acting to “protect more ordinary family farms”, while maintaining that larger estates should contribute more. Her comments set the tone of a partial retreat rather than a full reversal.

On the ground, some say ministers still haven’t gone far enough. Derbyshire farmer Ben Ardern called the change “a step in the right direction” but urged the government to spare family farms completely and focus on non‑farming investors who’ve parked money in land. He spoke to the BBC in remarks carried by Yahoo and AOL today.

Opposition parties also pressed for more. Conservative leader Kemi Badenoch called the move a “huge U‑turn” and said “this fight isn’t finished”, while Westmorland and Lonsdale MP Tim Farron for the Liberal Democrats said it was “utterly inexcusable” to have left farmers in limbo for over a year. Reform UK’s Richard Tice labelled it a “cynical climbdown”. Their statements were carried by national outlets through the afternoon.

The politics have been raw in rural Labour seats. Earlier this month, Cumbrian MP Markus Campbell‑Savours lost the Labour whip after voting against the original plan; around 30 Labour MPs are understood to have abstained in related votes, signalling unease on the backbenches.

The Treasury impact is not yet formally scored, but the Financial Times estimates today’s concession trims expected revenues by about £130m a year, reducing annual yield from roughly £430m to £300m. Defra says the Office for Budget Responsibility will publish updated numbers at the spring forecast.

There is some practical breathing space too. From 6 April 2026, HMRC will allow inheritance tax due on APR/BPR‑qualifying assets to be paid in ten equal annual instalments, interest‑free, which should help cash‑poor, asset‑rich businesses manage bills without forced sales. Families should still get professional advice, but the mechanism is now explicit in government papers.

For Northern farmers, the bigger debate hasn’t vanished. Ministers say the reforms stop wealthy investors using fields as a tax shelter while shielding working farms; unions and many local MPs counter that family businesses remain exposed, especially where land values are high but margins are thin. Expect fresh amendments when the Finance Bill lands in January-and more scrutiny from marts in Skipton, Kendal and Penrith, where this row has never been abstract.