Hitchin MP helps secure reform of Agricultural Inheritance Tax in boost for local farmers

PRESS RELEASE FROM ALISTAIR STRATHERN MP

WEDNESDAY 26^th NOVEMBER 2025

FOR IMMEDIATE RELEASE

Alistair Strathern, the MP for the Hitchin constituency, has welcomed tweaks to the Government’s Agricultural Inheritance Tax.

In today’s Budget statement, Chancellor Rachel Reeves announced changes to agricultural property relief reform to enable spouses to transfer their allowance to a partner, and backdated the change to ensure those whose spouse has already passed away will still benefit from the change. This has the effect of doubling the tax-free allowance for widows.

This change was secured after conversations between Strathern, the Treasury and parliamentary colleagues to ensure they work in a fairer way for local farmers. 

As a result of this announcement, approximately 60 farm estates a year who had been forecast to be impacted will not pay inheritance at all - over 10% of those originally expected to be impacted. Around 200 farms a year (over 35% of those originally forecast to be impacted) will pay less.

The change will cost the Government £60-70m a year, according to Treasury estimates, but is aimed at ensuring the reforms are implemented in a fair manner. 

Strathern, whose rural seat straddles Bedfordshire and Hertfordshire, has met with many farmers across his constituency. From his welly boots to Westminster, he, along with other Labour MPs, took farmers concerns about inheritance to ministers and pushed for the changes announced today.

 Alistair Strathern MP said:

“This is an important change that will make a real difference for many farmers locally and across the country.

 “Through my visits to farms right across our seat, it didn't seem right that farmers whose spouse had passed away before they'd had any opportunity to plan for these changes would be hit especially hard by them.

“I'm glad that the Treasury has listened, and today's announcement by the Chancellor is a welcome and fair one. 

"These changes will take over 10% of initially impacted estates out of paying inheritance tax altogether, and reduce the bill faced by over 35% of those who could have been affected."

 “Our family farmers deserve certainty and confidence so they can plan ahead for the future. Today I'm glad to have been able to help secure that.”

Notes for Editors

You can see attached a picture of Strathern with Chancellor Rachel Reeves.