The Autumn Budget on 26 November 2025 is shaping up to be one of the most important moments for British agriculture in years. With rising costs, policy uncertainty and big tax changes on the horizon, farmers are looking for clarity and reassurance. Instead, they are bracing for a Budget that could reshape how family farms operate and how rural businesses plan for the future.
At Agricultural Recruitment Specialists, we work closely with employers and workers across the sector. This article breaks down what the Budget is likely to bring, why farming organisations are sounding the alarm, and what practical steps farm businesses should be taking right now.
The backdrop. A tough fiscal environment and no easy wins
Across the economic commentary, one message is consistent. The Chancellor is under pressure. Government borrowing is high, growth is weak and most analysts expect the Treasury to raise revenue without announcing headline tax hikes.
Fidelity and other financial commentators suggest we should expect things like threshold freezes, reform of existing reliefs and subtle policy shifts that increase the tax burden without appearing to. Businesses in all sectors are warning the government that tax pressures are already at a twenty five year high. The CBI has gone as far as saying that further increases will damage growth and investment.
For farmers, who already face rising input costs and tight margins, this sets the tone for a Budget that is unlikely to hand out new incentives or major financial support. The question is no longer whether change is coming but how hard it will hit.
A sector raising its voice. Over 12,000 farmers writing to MPs
One of the clearest signs of concern has come from the grassroots.
Farmers Guide reported that more than twelve thousand people sent letters to MPs in less than two weeks as part of a national campaign calling on Parliament to defend family farms ahead of the Budget. The message was simple. Planned tax changes risk making multi generational farming unviable unless the government listens.
This level of mobilisation does not happen often. It shows how deeply many families fear the coming reforms and how directly the Budget could alter the future of British agriculture.
The headline issue. Inheritance Tax, APR, BPR and succession
Of all the expected Budget measures, none has caused more anxiety than the proposed changes to Inheritance Tax reliefs.
Here is what current commentary suggests.
1. Restriction of Agricultural Property Relief and Business Property Relief
From April 2026, claims for one hundred percent relief are expected to be capped at one million pounds per estate. Many farms will exceed that limit once land, buildings, machinery and business assets are taken into account. Saffery and other rural tax specialists warn that this could trigger forced sales or restructuring, particularly for farms with large landholdings or multiple properties.
2. Possible changes to lifetime gifting rules
There is strong speculation that lifetime gifts will be restricted, which would make succession transfers more expensive and less flexible for farming families.
3. Risk of removing the Capital Gains Tax uplift on death
If the uplift is removed, inheriting family members would shoulder a far greater tax bill when assets are eventually sold. For farmers, where land values have risen over decades, this could be substantial.
What this means for farming families
Succession planning can no longer be pushed into the future.
Restructuring may take longer and cost more, so farmers should start reviewing their plans now.
Families may need outside advice to understand how exposed their estate is under the new thresholds.
Some farms could find themselves having to sell land or business assets to meet upcoming tax liabilities.
This is the issue behind the 12,000 letters. It is also why organisations are calling this Budget potentially the biggest shift in agricultural taxation in a generation.
Farm support, environmental schemes and the wider policy picture
The charity Sustainhas urged the government to use the Budget to strengthen its commitment to climate, nature and food system resilience. Their concern is that current funding is too limited and too fragmented to help farmers transition effectively.
At the same time, fiscal pressure means new funding streams are unlikely. The most probable direction is tighter targeting of existing environmental schemes rather than a major expansion.
Farmers should be ready for adjustments to environmental land management schemes as the government seeks clearer delivery, measurable outcomes and value for money.
Land, property and investment decisions
Alongside tax relief reform, analysts have also speculated about potential changes to property taxation. Some predict a shift away from stamp duty and council tax models towards a system based more directly on property and land value.
For agriculture, where land is often both an asset and a livelihood, this carries big implications. Farmers thinking about buying or selling land should be cautious until the detail is confirmed. A change in tax treatment could affect both cashflow and long term planning.
Rising business costs. Labour, inputs and cashflow pressure
Labour remains a significant concern in the sector we recruit for daily. Wage pressures, energy costs, fuel taxes and potential National Insurance adjustments all play into farm budgets.
If the Treasury freezes allowances or expands tax bases as predicted, the cost of employing staff, maintaining equipment and running daily operations is likely to increase.
Farms relying on seasonal labour, contractors or specialist roles need to build in contingency and consider where productivity improvements or diversification may soften the impact
What farmers should do now. Practical steps
Given the uncertainty, the most important actions are strategic rather than reactive.
1. Review succession plans immediately
Do not wait until April 2026. Map out potential tax liabilities and stress test various scenarios. Farmers with landholdings above the expected thresholds should seek early specialist advice.
2. Model business costs for the next two years
Assume higher payroll and operational costs. Build emergency buffers and review long term capital spending plans.
3. Reassess investment and diversification decisions
Do not rush major investments that rely on current reliefs. Make sure any new ventures offer strong economic value even if tax rules change.
4. Follow updates closely
Because much of the commentary is speculative until the Chancellor speaks, avoid drastic moves based on rumour. Stay informed, then act quickly once the details are published.
5. Strengthen communication inside family farms
If a farm is shared between generations, this Budget should start conversations, not end them. Be open, transparent and forward thinking.
The Autumn Budget 2025 is more than a fiscal announcement. For many farms, it could determine whether their business model remains viable or needs major change. With relief restrictions, increased tax pressure and uncertainty around future support schemes, farmers will need to plan earlier and more strategically than before.
But the sector is also proving something powerful. When more than twelve thousand farmers write to their MPs in a fortnight, it shows unity, resilience and a willingness to fight for the future of British agriculture.
Agricultural Recruitment Specialists will continue to monitor developments, support employers through the transition and help farms build stable, skilled teams whatever the Budget brings.
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