The Treasury has been accused of deliberately delaying the publication of a major government-commissioned farming review until after the Autumn Budget, in a move Whitehall sources claim is designed to avoid reopening the debate on inheritance tax changes affecting farmers.
Key Report 'Locked Away'
According to sources within government, the review conducted by former National Farmers' Union president Baroness Batters has been effectively 'buried' by the Treasury despite being submitted to the Department for Environment, Food and Rural Affairs (Defra) at the end of October.
The report, which contains 57 recommendations for improving farming profitability, was originally expected to be published within weeks of its submission. However, environment secretary Emma Reynolds recently committed only to publishing it before Christmas, just days after Baroness Batters told a farming conference she expected publication in 'the next couple of weeks'.
Inheritance Tax Changes Spark Industry Fury
At the heart of the controversy are changes to inheritance tax announced by Chancellor Rachel Reeves last autumn. From April 2027, UK farmers with assets exceeding £1 million will face a 20% inheritance tax rate, removing the previous exemption for farmland.
The Batters review is understood to highlight widespread concerns within the agricultural sector about these tax changes, although Baroness Batters was not specifically asked to make recommendations on inheritance tax matters.
Industry bodies including the NFU and Country Land and Business Association have argued that the changes threaten the future of family farming, as small businesses may be forced to sell assets to meet tax liabilities. HMRC estimates approximately 2,000 estates will pay more tax as a result of the changes, but there are growing fears that many farming families may leave the industry entirely to avoid the financial burden.
Political Implications and Industry Response
The review was commissioned by Defra in April under former environment secretary Steve Reed, who had hoped to use its findings to secure additional support for farmers in the Budget to help mitigate the impact of tax changes.
However, government sources indicate the Treasury has made clear it does not want the report published until after November 26, with one source stating there is 'no desire in the Treasury to reopen the debate over inheritance tax'.
Another source familiar with the process commented: 'The feeling I got is that they [the government] would quite happily let this die... which equates to delaying it.'
Baroness Batters, speaking at a conference in Peterborough earlier this month, indicated her review would call for a radical overhaul of government policies toward farming, arguing the industry has been undervalued for too long. She suggested short-term wins could be achieved through tax incentives and investment opportunities, while also supporting the creation of a new arms-length body, Food and Drink England.
When approached for comment by media, Baroness Batters declined to speak further. A Defra spokesperson stated: 'The secretary of state is grateful for all the work that Baroness Batters has undertaken. The Batters profitability review is an important step in our commitment to boosting the long-term profits of farmers and will be published before Christmas.'
