Almost one in five family farms have cut jobs or paused recruitment following proposed changes to agricultural property relief, new research reveals.
The study into the economic and fiscal impacts of changes to APR, commissioned by Family Business UK and conducted by CBI-Economics, is the largest to be undertaken yet.
It looks into how family farms, as well as family-owned businesses across all sectors, will respond to changes to both APR and business property relief (BPR).
Almost a quarter (23%) of family businesses and nearly one-fifth of family farms (17%) have slashed jobs or paused recruitment since the announcement.
And more than half (55%) of family-owned businesses and just below half (49%) of family farms have paused or cancelled planned investments.
They will continue to cut both investment and jobs before April 2026 when the changes to BPR and APR come into force, according to the research.
In the autumn budget last October, the government announced several reforms to APR and BPR from inheritance tax.
This includes a £1m allowance which will apply to the combined value of property that qualifies for 100% BPR or 100% APR, or both.
After the £1m allowance has been exhausted, relief will apply at a lower rate of 50% to the combined value of qualifying agricultural and business property.
The new study warns that these changes would result in more than 208,000 jobs being lost by the end of this parliament.
It also suggests that GVA, a measure of economic value, would reduce by £14.9 billion by the end of this parliament.
Neil Davy, CEO of Family Business UK, said the data showed "unequivocally the damage that is already being done to Britain’s family-owned businesses and farms, and the wider economy".
He said: “Across every sector, decisions are being taken now to cut jobs, reduce investment and sell assets threatening the future of thousands of businesses, farms and the sustainability and security of UK farming and food production.
"Ultimately, it will be the working people, and communities right across the country, who depend on family-owned businesses and farms who’ll pay the price."
The research also reveals that over one in ten (14%) of farmers plan to sell off assets or part of their farm, while 12% are seeking to sell land or shares to non-family investors.
Another one in ten (11%) of farmers have downsized farming operations since the autumn budget, and one-fifth (21%) plan to do so before April 2026.
Mr Davy warned that family farms would cutting jobs and investment in the lead up to April 2026, which would massively reduce tax revenue.
"In light of that, it’s vital the OBR reassesses its policy costing and revises its forecast," he said.
More than 4,000 businesses and farms across the UK took part in the research.
