CORNWALL’S MPs have reacted to the news of the government’s changes to Agricultural Property Relief affecting farmers.

The government today announced that it would be increasing the allowance for the 100 per cent rate of relief on inheritance tax, known as Agricultural Property Relief and Business Property Relief, will be set at £2.5-million, with a 50 per cent rate of relief thereafter. This means a couple will be able to pass on up to £5-million of agricultural or business assets between them, on top of the existing allowances such as the nil-rate band.

The reforms to agricultural property relief and business property relief mean that only a small number of estates with agricultural and business assets will pay additional inheritance tax. The government estimates that up to 185 estates claiming agricultural property relief, including those also claiming business property relief, are expected to pay more inheritance tax in 2026-27.

Cornwall’s MPs have reacted to the news.

Anna Gelderd, Member of Parliament for South East Cornwall said: “Over the past year, I have been listening to farmers in South East Cornwall, working with industry experts and organisations, and pressing their case in Parliament, and directly with DEFRA and Treasury Ministers. I am glad that the inheritance tax threshold for farming families is being increased. This change gives much needed certainty, protects the future of family-run farms and reflects the real pressures facing modern agriculture.

“At all stages, I have appreciated the open engagement of the local farming community, many of whom have shared their stories and concerns directly with me. As a result of this hard work and collaboration, we now have national policy working for those who put food on our tables. I am glad to have played a part in protecting our farming culture for future generations.”

Noah Law MP for St Austell and Newquay said: “This gets us to a position where we not only safeguard the family farm, but also gives relatively favourable treatment to smaller family farms versus large, industrial-scale operations - putting our food security first and putting us in a better position than when we first started this debate. It also shows that constructive engagement with one’s own Government and a willingness to stick your neck out can pay off. I’m delighted for our local farmers in Cornwall – who know we’ve been fighting their corner on this for over a year now and whose minds I hope it’ll put at rest this Christmas”.

Perran Moon, Member of Parliament for Camborne, Redruth and Hayle said: “Having consulted for months and months with farmers across Camborne, Redruth and Hayle and passed their feedback directly into the Treasury that the policy needed to be amended, I am absolutely delighted that the Government has listened. This will be a huge Christmas relief to a huge number of my farmers. As a member of the backbench Labour Rural Research Group I’ve been working with colleagues across the UK, as well as my three colleagues in Cornwall to ensure that this got done. I’m chuffed to bits.”

Jayne Kirkham, Member of Parliament for Truro and Falmouth said: “I am so pleased and relieved that this change has been made to inheritance tax. It will mean that the family farmers in my constituency, particularly the elderly farmers who have been so concerned about this, will now be protected up to over £5million if they can also use the spousal allowance. A great Christmas present.”

However, it isn’t only Labour MPs who have welcomed the change, Liberal Democrat MP for North Cornwall, Ben Maguire has also welcomed the news.

He said: “This is a huge relief for many family farms and a clear sign that our campaigning efforts have paid off. From the moment these proposals were announced, I warned they would hit over 400 genuine working farms here in North Cornwall hard, and risk becoming the final blow for farming families already under immense pressure.

"Since our campaign started last year, I’ve met countless farmers, heard their stories first-hand, raised their cases in the House of Commons, and voted against these plans. The government has now finally been forced to listen, and commit to this U-turn."