A council will write to the Government, voicing its dismay at the decision to restrict Agricultural Property Relief and urging it to stop the proposed family farm tax.
Boston Borough councillors agreed that recent policy changes outlined in Chancellor Rachel Reeves’ Autumn Budget will have a ‘detrimental’ impact on local farmers and supported a motion for the council leader to write to the Secretary of State for Environment, Food and Rural Affairs, Steve Reed.
The motion, presented by Conservative Cllr James Cantwell at a full council meeting on Monday (20 January), addresses the Labour Government’s changes to Inheritance Tax rules, particularly Agricultural Property Relief and Business Property Relief on farmland and business assets.
Previously, farmland was exempt from Inheritance Tax under APR. However, the changes will restrict this exemption further.
From April 2026, agricultural assets exceeding £1 million will be subject to a 20% tax.
“Since government announcements about the changes to inheritance tax and cuts to rural support, confidence in the viability of businesses from farmers I have spoken to has plummeted,” said Cllr Cantwell.
“Boston borough is a largely rural and agricultural district that boasts many multi-generational farms from Bicker to Old Leake.
“The government policies will affect family farming in this area, allowing distant corporations to purchase land as farms become unviable.
“Across the country, farmers and organisations are fighting against the government policies and we feel it’s time Boston Borough ramped up its support on this as well.”
He added: “Although as a district council, our role to play in this fight may be smaller compared to the National Farming Union and the county council, I still firmly believe there are things we can do in our district to make people’s lives easier.”
Seconded by Cllr Stuart Evans (Con), the motion also gained support from Cllr Richard Austin, who explained he had years of experience working in the agricultural sector.
He argued: “Over time, this legislation will bring drastic change to the farming industry of Boston borough and of the country at large.
“Land will increasingly fall into the hands of businesses and institutions without local connections and often not based in the UK.”
Leader Cllr Anne Dorrian (Ind), while agreeing with the cause, proposed an amendment to the original motion, which also included a suggestion for the portfolio holder for communities to meet with local farmers and community representatives to explore ways the council could provide support.
It further proposed advertising available support on the council’s website and social media, as well as encouraging parish councils to do the same.
The leader chose to remove these additional points, focusing solely on writing to the government.
She explained it was improper to instruct the portfolio holder on how to perform their role and described the third bullet point as a ‘step too far’.
Cllr Dorrian stated: “We are very happy to support the majority of this motion.
“There is a land grab going on by private investors, who have no real interest in the farming element, but are buying land to avoid inheritance tax.
“It’s a crude but legal thing they are doing.”
With the amendment carried, Cllr Cantwell expressed his disappointment as he felt it removed the ‘core of what the motion sought to achieve’.
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