The Treasury buried the agriculture industry report until after the Budget

Sunday November 16 2025 11:32

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A review carried out by the government shows that financial pressures on the farming industry have been “buried” by the Treasury until after the Autumn Budget, sources in Whitehall have claimed.

A review by former National Farmers Union (NFU) president Baroness Batters is understood to show concern among farmers over Chancellor Rachel Reeves’ changes to inheritance tax (IHT) last autumn, the Sunday Times first reported.

From April 2027, British farmers with assets of more than £1 million will be subject to inheritance tax of 20 per cent, a decision that has sparked uproar in the industry as agricultural land has previously been exempt.

The Batters report, which contains 57 recommendations on how to improve farming profitability, was submitted to the Department for Environment, Food and Rural Affairs (Defra) at the end of October, and is set to be released within weeks.

But at a select committee meeting last week, the Environment Minister, Emma Reynolds, committed to only publishing the book before Christmas, just days after Batters told an agricultural conference she was confident it would be published in the “next few weeks.”

IHT is not open to debate

Batters was commissioned by Defra in April and asked to submit its report in time for publication in the Autumn Budget.

At the time the commission took office, then Environment Minister Steve Reed said he hoped to use the findings to try and get more support for farmers in the Budget to mitigate tax changes.

However, sources in Whitehall claim the report has been “locked up” within Defra after the Treasury made clear it did not want the report to be made public until after 26 November.

Government sources also said there was no intention of the Treasury to reopen the inheritance tax debate.

Another source familiar with the process said: “The feeling I got was them [the government] would be happy to let this die…which is the same as delaying it.”

The NFU and Country Land and Business Association argue that the changes will threaten family farming as small businesses will be forced to sell assets to meet inheritance tax changes.

HMRC estimates around 2,000 estates will pay more tax as a result of changes to inheritance tax, but concerns are growing that many farming families will leave the industry to avoid paying.

Farmer’s anger

While Batters was not asked to include explicit recommendations on inheritance tax, sources familiar with the review said it made clear there were widespread concerns in the sector about the impact of the tax.

Speaking in Petersborough earlier this month, Batters said his review would call for a radical overhaul of government policy towards the agricultural industry, which he said had been undervalued for too long.

He said “short-term wins” could be achieved through tax incentives and investment opportunities, while also supporting the creation of a new body, Food and Drink England, which would help implement farming and food policy and simplify confusing regulations.

Batters declined to comment to The Sunday Times.

Defra said: “The Foreign Secretary is grateful for all the work Baroness Batters has done.

The Batters profitability review is an important step in our commitment to improving the long-term profitability of farmers and will be published before Christmas.”