Inheritance tax reform exploded back into the spotlight at the CLA Rural Business Conference as new president Gavin Lane warned ministers he risked stripping family farms of their foundations.
In his first speech as CLA chairman in front of more than 500 local delegates, Mr Lane accused ministers of a “fundamental misunderstanding of how family businesses work” and of treating intergenerational transfers rather than the roots of local investment.
Also in attendance were Defra Secretary Emma Reynolds and Agriculture Secretary Dame Angela Eagle, who said the government appeared to be “absorbing economic theory about wealth inequality without understanding that dismantling family businesses could destroy the very stability needed to solve national challenges”.
Mr Lane warned that uncertainty around the planned inheritance tax review was already holding up vital investment across the local economy.
“The central contradiction that no government can escape is that they need governments to invest, grow and provide solutions, but their current position requires them to strip them of the intergenerational stability that makes that investment possible,” he said.
“You can’t pay people to plant orchards that they’ll never see grow, and then tell their children they’re not allowed to pick fruit.”
He also criticized the sudden closure of the Sustainable Agriculture Incentive (SFI), arguing that its members have proven over 30 years that they are “trusted partners” in environmental planning who can deliver large-scale nature restoration.
Turning to water security, Mr Lane told the CLA Rural Business Conference that he did not believe the government had “waked up to the impending water demand crisis” and called for a national push for irrigation reservoirs and natural flood management.
He also highlighted the role of local businesses in promoting healthier diets, renewable energy, local jobs and environmental restoration, stressing: “When businesses thrive, communities thrive. Jobs are created, services are maintained, landscapes are managed and nature is restored.”
He called on ministers to put ideology aside and work with landowners rather than against them. “Whether this government or others, we need to look beyond dogma and see what private landowners can achieve. If working together can lead to long-term solutions, then this is not a fight worth fighting.”
Reynolds: “If rural England succeeds, the whole country succeeds”
In response, Defra Secretary Emma Reynolds acknowledged past tensions and stressed her intention to work collaboratively with the sector. “This government believes that the rural economy is absolutely fundamental to our growth mission,” she said. “When rural England succeeds, the whole country succeeds.”
She said her vision was “a rural, thriving business environment where good jobs are created and communities thrive” and that the SFI reforms were “an evolution, not a revolution”. Mr Reynolds acknowledged a mistake had been made in the sudden cancellation of the plan and promised more clarity.
The Secretary of State also confirmed progress in urgent policy areas. On water, she said Defra was working on “clarification of planning practices” to facilitate the delivery of on-farm reservoirs.
She praised the sector’s high production standards and outlined ongoing efforts to address rural crime, biosecurity threats, the digital connectivity gap and the lack of affordable rural housing.
Mr Reynolds also highlighted measures to boost productivity ahead of the Batters Review, including developing new export markets, introducing ‘fair trading’ supply chain rules, delivering around £250m in agricultural productivity grants and appointing Alan Laidlaw as the new tenant farming commissioner.
She concluded by reaffirming her commitment to cooperation: “We look forward to working with you to unlock the huge growth potential of local businesses.”
Looking ahead, industry bodies say the upcoming budget and the reopening of SFI will be the next big test of the government’s willingness to match its words with meaningful action.
