An Ainsworth farmer has raised concerns over government plans affecting the future of his industry. Chancellor Rachel Reeves announced a reform on inheritance taxes applied to farms during Wednesday’s Budget announcement. She said from April 2026, the first £1m of combined business and agricultural assets will continue to attract no inheritance tax.
But for assets over £1m, inheritance tax will apply with 50 per cent relief, at an effective rate of 20 per cent. Stuart Alderson, of Paddock Leach Farm in Ainsworth, said his business will not be affected by the announcement, due to its small size, but it will be "detrimental for bigger farms". He said: “The farming community is still digesting the news.
"Fortunately for me it won’t be an issue, but we’ve only got a small farm. “The problem is now, to make a living from farming you need quite a big farm and they’re going to be dragged into it. “All it’s going to do is make life much more difficult for farms to be passed on and that means big farms will hoover up the land.
“It will be more detrimental for bigger farms and there will be no incentive now for smaller farms to become bigger farms because they’ll get caught up in this." Mr Alderson also pointed out that there will be a degree of relief but acknowledged how tough the market is. He added: “A lot of people are quite relieved because at least they have left some exemption for farms up to the current limit.
"But I’d hate to be in the position of fa.