Kevin Hollinrake, Member of Parliament for Thirsk and Malton, has welcomed a partial Government U-turn on proposed changes to the so-called family farm tax, while warning that months of uncertainty have already caused significant harm to rural communities.
The Government has announced that from April 2026 the tax-free threshold for agricultural and business assets will be set at £2.5 million, rather than the previously planned £1 million, under changes to Agricultural and Business Property Relief.
The announcement follows months of campaigning by farmers and family-run businesses across Thirsk and Malton and nationally. Mr Hollinrake has held regular meetings with local farming families and business owners and has repeatedly raised their concerns in Parliament, including highlighting the case of the Emmerson family during Prime Minister’s Questions last year.
However, the MP cautioned that while the revised threshold will provide some relief, the prolonged uncertainty surrounding the policy has already been “deeply damaging” to the rural and local economy.
He said investment plans have been put on hold, recruitment frozen and, in some cases, farms and family businesses sold in anticipation of the tax changes. Many families have also faced emotional strain alongside significant professional costs, including legal and accountancy fees, as they sought to reorganise succession and inheritance plans.
Mr Hollinrake said: “This partial U-turn is welcome, but it does not go far enough. For some time now I have been speaking directly with farmers and family-run businesses across Thirsk and Malton, listening to their concerns and raising those issues in Parliament.
“Family farms and family businesses are the backbone of our rural and local economy. Many have been deeply worried about the impact this tax would have on their ability to pass their life’s work on to the next generation.
“The emotional toll has been considerable, and families have also had to bear the financial burden of paying solicitors and accountants simply to safeguard what they have built.
“While today’s change shows that pressure is having an effect, there is still more to do to fix a policy that remains deeply damaging. The Conservatives remain committed to fully abolishing the Family Farm and Family Business tax.”
Mr Hollinrake said he would continue to press the Government to provide certainty for farming families and rural businesses, arguing that long-term stability is essential to protect livelihoods and sustain the rural economy.
David Skaith, Mayor of York and North Yorkshire, said: “This is a welcome decision and will end months of anxiety experienced by many farmers across York and North Yorkshire.
“I have made clear the impacts, identified in our farm finance review, would have on farmers and rural businesses in our region. Today’s announcement and the increase in the threshold is a huge step towards addressing those concerns.
“Our farmers are a vital foundation to our communities in York and North Yorkshire, and Great Britain. I’ll continue working with partners and the Government to best support our farming communities and our nation’s food security.”
The environment secretary, Emma Reynolds, said: “We have listened closely to farmers across the country and we are making changes today to protect more ordinary family farms.
“It’s only right that larger estates contribute more, while we back the farms and trading businesses that are the backbone of Britain’s rural communities.”
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